What is Redraw?

Redraw is one of the most commonly used facility features in the maket.  Redraw allows you to make extra repayments to your loan and then have access to those repayments at a later date.

Redraw allows you to make extra repayments to reduce your interest costs, and still have flexibility to access to the funds.

Most loan facilities have this feature included, except for the most basic of variable loans. When considering a redraw facility be aware of the following:

• Lenders may charge a fee for you to redraw your extra funds
• There may be a minimum amount you are allowed to redraw.
• There may be an additional fee to activate the redraw.
• Are there a maximum number of redraws allowed?

Redraw facilities are ideal for those who wish to redraw infrequently. If you are looking for a transactional or flexible facility there may be a more suitable facility.