A redraw facility is a loan feature that is usually available with variable rate home loans and some fixed rate loans. A redraw facility lets you access any extra repayments you’ve made on your home loan.
It’s not surprising that many borrowers use redraw facilities to make the most of their mortgages. However, every product has its pros and cons, so it’s important to take the following points into account before you set up a redraw facility.
Use our handy Extra Repayment Calculator to find out how much interest you could save by making extra or larger than minimum repayments.