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.

The article does not have regard for the financial situation or needs of any reader and must not be relied upon as financial product advice. As this information has been prepared without considering your objectives, financial situation or needs, you should, before acting on this, consider the appropriateness to your circumstances.

More questions?
We have more answers.

Chat to us

Got a question?
Ask us anything.

Understand your eligibility
Check and submit your application
Get support every step of the way

There's plenty more to love