Redraw
Redraw lets you take back extra repayments you have made ahead of schedule, subject to the lender's conditions.
Redraw, explained.
Extra repayments reduce the balance and the interest charged. Redraw makes those extra repayments accessible again, sometimes with a minimum amount, a fee or a delay. Fixed loans often restrict or exclude it.
Redraw and offset achieve a similar interest saving but differ legally: redrawn funds are new borrowing, which matters for tax if the property later becomes an investment, and a lender can restrict redraw if your circumstances change. An offset balance is your own money in your own account.
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The Learn section is general information about lending in Australia. It does not take account of your objectives, financial situation or needs, is not credit assistance, and is not tax, legal or financial advice. Lender policies, government schedules and regulations change; check the current position with the relevant body or with us before relying on it.
