What happens when I redraw from my home loan?

Learn what happens when you redraw from your home loan, how it affects your balance, and what to consider before accessing those extra funds.

Are you considering withdrawing from your redraw facility, but unsure what happens next? Here's what to expect.

A redraw facility gives you the ability to access additional repayments that you’ve made on your home loan, over and above the minimum monthly repayments. You can make regular contributions or a one-off lump sum contribution to your redraw facility.

The additional repayments in your redraw facility can be redrawn for any reason such as:

  • Unexpected expenses
  • Renovations
  • Bills
  • Holidays

However, it's important to understand what happens when you withdraw from a redraw facility. When you choose to withdraw available funds from your redraw facility, it means you increase your home loan balance, which could potentially extend the time it takes to repay your home loan.

If you choose to redraw, you should consider any financial impacts, for example any tax implications. You may want to seek financial advice from a professional.

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Calculations are not a loan approval. Applications are subject to credit approval, satisfactory security and minimum deposit requirements. Full terms and conditions will be set out in our loan offer, if an offer is made.

^Rates shown are inclusive of a 0.01% p.a. discount off our reference rate. On each anniversary of your loan’s settlement date, you will receive an additional discount of 0.01% per annum, up to a maximum discount of 0.30% per annum. For purchase loans with a Loan to Value Ratio (LVR) between 80.01% - 90% LVR, a lenders mortgage insurance (LMI) premium and higher interest rate apply. In some cases depending on the property’s location or type, LMI may also be required for LVR between 70.01% and 80%.

*Comparison rate is calculated on a $150,000 secured loan over a 25 year term. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.