If you are thinking about a home loan or mortgage, you may want to consider whether you will need a redraw facility as a feature of the loan. Many home loans have a redraw facility included but some loans such fixed home loans, no-frills and basic home loans will not offer this option.
A redraw facility allows you to draw on the extra repayments you have deposited into your loan. While an offset account allows you to deposit extra repayments, the redraw facility enables you to take that money back out if you need it. A redraw facility is a great feature if you plan to use an offset account for your savings rather than a savings account, which will save you more in interest.
RateCity.com.au, Australia’s leading home loan comparison site, helps you compare home loans and also use the Australian Mortgage Calculator to find out how much you will have to repay for different interest rates and loan amounts.