3 reasons to make use of a redraw facility

Do you need access to extra funds?

If you need to access additional funds to help cover holiday activities or home improvements, a redraw facility could be a great way to get ahead.

A redraw facility allows you to make additional repayments into your home loan account and then access these extra funds at a later date when necessary. Here are three great reasons to access a redraw facility, if it is available to you. 

1.     It gives you flexibility

A redraw facility gives you the flexibility to put more towards your home loan when you have cash available, whilst knowing you can access your extra repayments later on if you need to. 

2.     It can save you money

Because a redraw facility allows access to additional repayments, it encourages borrowers to deposit extra money into their home loan, reducing the amount owing, thereby saving on interest costs.

3.      It is free to use for many home loan types

Unlike some home loan providers and depending on your loan type, there’s a good chance you won’t be charged a fee when you redraw your available funds.  There’s no annual limit on the number of redraws you make and there’s no maximum redraw amount, although you can only access any extra repayments you’ve made and depending on the loan there may be a minimum redraw amount.  

Find out more about redrawing on your home loan. Alternatively, contact your local Home Loan Centre or call us on 13 RAMS, that’s 13 7267.