What Happens When I Redraw From My Home Loan?
Everything you need to know about what happens when you withdraw from a redraw facility.
Are you considering to withdraw from your redraw facility, but unsure what happens next? Here's what to expect.
A redraw facility gives you the ability to access additional repayments that you’ve made on your home loan, over and above the minimum monthly repayments. You can make regular contributions or a one-off lump sum contribution to your redraw facility.
The additional repayments in your redraw facility can be redrawn for any reason such as:
- Unexpected expenses
- Renovations
- Bills
- Holidays
However, it's important to understand what happens when you withdraw from a redraw facility. When you choose to withdraw available funds from your redraw facility, it means you increase your home loan balance, which could potentially extend the time it takes to repay your home loan.
If you choose to redraw, you should consider any financial impacts, for example any tax implications. You may want to seek financial advice from a professional.
Learn more about a redraw facility and how it works at Unloan.
This article is intended to provide general information only. It does not have regard to the financial situation or needs of any reader and must not be relied upon as financial product advice. Please consider seeking financial advice before making any decision based on this information.
Unloan is a division of Commonwealth Bank of Australia.
Applications are subject to credit approval; satisfactory security and you must have a minimum 20% equity in the property. Minimum loan amount $10,000, maximum loan amount $10,000,000.
Unloan offers a 0.01% per annum discount on the Unloan Live-In rate or Unloan Invest rate upon settlement. On each anniversary of your loan’s settlement date (or the day prior to the anniversary of your loan’s settlement date if your loan settled on 29th February and it is a leap year) the margin discount will increase by a further 0.01% per annum up to a maximum discount of 0.30% per annum. Unloan may withdraw this discount at any time. The discount is applied for each loan you have with Unloan.
There are no fees from Unloan. However, there are some mandatory Government costs depending on your state when switching your home loan. For convenience, Unloan adds this amount to the loan balance on settlement.
* Other third-party fees may apply. Government charges may apply. Your other lender may charge an exit fee when refinancing.
