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Redraw Facility Frequently Ask Questions
If you haven’t used a finance broker before, you probably have some questions. Let’s help you get some answers.
Is it bad to take money out of redraw?
Whether or not it is bad to take money out of your redraw facility will depend entirely on your individual circumstances and the redraw stipulations of the lender. However, it’s important to remember that making extra payments can help pay off your home loan faster and save you money on interest charged to your home loan. So withdrawing the funds in your redraw facility may mean it takes longer to pay off your home loan and you will spend more money on interest long-term.
Is it better to put money in offset or redraw?
Both a redraw facility and an offset account aid in paying your home loan off sooner and reducing the interest you pay on your home loan.
Can you transfer from redraw to offset?
Once you withdraw the funds from your redraw facility, you are able to use the funds however you wish, including depositing them into your offset account.
What happens to redraw when loan is paid off?
Once you repay your home loan, your redraw facility will close and you will no longer have access to it. Any funds in the redraw facility will go towards repaying your home loan.