What happens when I redraw from my home loan?

Learn what happens when you redraw from your home loan, how it affects your balance, and what to consider before accessing those extra funds.

Updated on 22 Jun 20264 minute read

Are you considering withdrawing 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.

Written by Unloan Team

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 10% deposit or 10% equity in the property (LVR below 90%). Minimum loan amount $10,000, maximum loan amount $10,000,000, and total borrowings per customer across all Unloan loans is $10,000,000. You cannot borrow more than $2,000,000 of above 80% LVR loans. In some cases depending on the property’s location or type, we may only be able to lend you up to 70%.

Unloan offers a 0.01% per annum loyalty 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. The loyalty discount is applied to your variable rate at the relevant time, and this rate may increase or decrease over your loan term. For more information view our rates and features.

*At Unloan, we do not charge any annual, application, banking, account, transaction, late or exit fees. Government fees may also apply. Learn more about government fees here. Your current lender may charge an exit fee when refinancing.

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