• Home loan redraw facility explained


    Author: Bankwest (sponsored content)

    When you make extra repayments on your home loan, this money builds up in surplus. Because it is in your home loan, the money is separate from your everyday spending, it’s reducing the interest you pay on your mortgage, and you have peace of mind knowing you can access it if you need to through what’s called a redraw facility.

    Reasons to redraw

    This money may come in handy to pay for expenses you didn’t see coming, like an emergency or investment opportunity. Or you might want to spend the money on planned things like renovations, holidays or a new car.

    Redrawing the surplus funds in your home loan means you may not have to apply for another loan or a credit card. However, keep in mind that redrawing your extra repayments will mean those funds are no longer reducing the interest on your home loan.

    Another way you may be able to use your surplus is to take a break from making regular scheduled home loan repayments for a period of time. This could be useful if, say, you’re going on parental leave, taking a career break or changing jobs.  Just keep in mind that as your surplus reduces your interest repayments will increase

    How to use a redraw facility

    Our variable rate home loans let you redraw your additional repayments for free through online banking. You can also use other methods of redraw, such as over the counter, with our variable rate home loans and fixed rate home loans – note that a minimum withdrawal amount and fees may apply. 

    See how to redraw your extra repayment 

    If you’d like to speak to someone about your home loan redraw facility get in touch with a Bankwest Home Finance Manager today.

    The information contained in this publication is of a general nature and is not intended to be nor should it be considered as professional advice. You should not act on the basis of anything contained in this publication without first obtaining specific professional advice. To the extent permitted by law, Bankwest, a division of Commonwealth Bank of Australia (Bankwest) ABN 48 123 123 124 AFSL / Australian credit licence 234945, its related bodies corporate, employees and contractors accepts no liability or responsibility to any persons for any loss which may be incurred or suffered as a result of acting on or refraining from acting as a result of anything contained in this publication.

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