What is a Redraw Facility?
The latest in home loans news
Singles step into property market thanks to government scheme
Aussie first home buyers who may have felt priced out of the property market are now getting a foot on the ladder, thanks to the First Home Loan Deposit Scheme.
A redraw facility lets you withdraw any extra money you’ve paid onto a loan and put it back in your pocket. You can only redraw from the excess balance on your loan, so to use a redraw facility, you’ll need to be ahead in your loan repayments. With a redraw facility, you can use your spare savings to make extra loan repayments that reduce your debt and interest, without locking your money into your loan and leaving it inaccessible in case of emergency.