What is Redraw Facility?
Quick definition
A redraw facility lets you access eligible extra repayments made on your loan, usually under lender rules.
Home loansGeneral
Overview
Redraw allows access to some surplus repayments you have made above minimum required repayments.
This can improve flexibility, but availability, minimum redraw amounts, fees, and timing vary by lender and product.
Redraw and offset can appear similar in outcome for interest, but they differ in liquidity behavior and account treatment.
Why it matters
- Offers access to some prepaid loan funds if needed.
- Policy restrictions can affect practical access when funds are needed most.
- Important when comparing products with similar rates.