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Redraw is a simple way to access additional repayments that you have made on your home loan above the minimum required repayments, to pay for renovations or other expenses.
Once you have your home loan, you are required to make minimum repayments. If you make additional repayments above what is required and redraw is available on your home loan, these additional funds become part of your available redraw.
^Provided the customer was not in arrears at the start of the period and that all required payments are made in accordance with the loan contract.
Any money in your redraw reduces the balance owing on your home loan. This means that you'll be paying less interest on your home loan.
Redraw can be helpful if you want to use the money at a later date - for home renovations, pay off debts like credit cards or personal loans, or to make purchases you may otherwise use a personal loan for, like a car or holiday.
1. Login in to your Online Banking account.
2. Click the three dots next to the home loan account you want to redraw from. The available balance amount is your available redraw.
3. Select 'Transfer'.
4. Then follow the prompts to transfer fund into your preferred savings account.*
*Redraw terms and conditions apply and redraw is only available for certain home loans. Redraw is subject to our approval. We may change, suspendor terminate the redraw facility at any time.
You pay interest on the outstanding balance of your home loan. If you have money in redraw, this reduces the outstanding balance and therefore the interest payable. If you take money out of your redraw balance, this will increase your outstanding balance and you will pay interest on the higher amount.
No. Your repayments will not change. However, as discussed above, you will pay interest on a higher outstanding balance.
If available on your home loan, an offset account allows you to reduce the interest charged on your loan while also giving you access to your money whenever you need it. It works like a transaction account, but it’s linked to your home loan, and reduces your outstanding balance for the purposes of calculating interest. A redraw facility isn’t an account but a feature attached to your eligible home loan.
