Compare home loans with a redraw facility
Looking for a home loan that gives you access to extra repayments you’ve made if needed? The table below shows a selection of loans from our Online Partners, which offer a redraw facility. The table is sorted first by Star Rating (highest to lowest), then lowest comparison rate, then alphabetically by brand.
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The initial results in the table above are sorted by Star Rating (High-Low) , then Comparison rate^ (Low-High) , then Provider Name (Alphabetical) . Additional filters may have been applied, see top of table for details.
What is a redraw facility?
A redraw facility gives access to any extra repayments you may have made on certain types of loans. Commonly, these are home loans and personal loans, with account-holders able to withdraw some (or all of) the money they have paid off the loan, over and above the lender’s required minimum repayments. Typically, with loans that have this feature, the interest on your loan is calculated according to the total balance of your loan (including the extra repayments). So, paying extra repayments into a loan with a redraw facility can mean that your repayments may be reduced, as the total interest is reduced, but that you will also have access to that extra cash.
For example, if you decide to pay an extra $250 a month into your loan, you’ll have an extra $3000 of additional payments accumulated by the end of the year. With a redraw facility on your loan, it’s up to you whether you want to leave this money to reduce your loan balance and interest charges or if you would like to apply to redraw it and spend it on other expenses.
Explore further: Offset vs redraw account – What’s the difference?
However, it’s important to note that there may be restrictions placed on when and how much you can redraw, depending on your lender’s rules. Be sure to read all important documentation when considering loans, such as the Target Market Determination (TMD), Key Facts Sheet (KFS) and any other terms and conditions. They can usually be found on the lender’s website, or you can ask for a copy from the lender.
Frequently Asked Questions about using a redraw facility
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About the authors
Nina Rinella, Editor-in-Chief
Joshua Sale, Group Manager, Research & Ratings
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This advice is general and has not taken into account your objectives, financial situation or needs. Consider whether this advice is right for you.