What is a Redraw Facility?
Latest home loans news
Mortgage stress affecting 40% of households, despite property market aflush with stimulus
Billions of dollars’ worth of government and bank support has failed to put a lid on mortgage stress, soaring to its highest level ever.
Lenders slash mortgage rates while Australians top up offset accounts
Average home loan interest rates have declined by between 33 and 45 basis points over the last quarter, according to the Reserve Bank of Australia (RBA). While this has reportedly led more Australians to refinance their mortgages and top up their offset accounts, fewer new home loans have been recorded.
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.