Home loan redraw facility explained 

When you make extra repayments on your eligible home loan, this money builds up in surplus. Because it is in your home loan, the money is separate from your everyday spending, it’s reducing the interest you pay on your mortgage, and you have peace of mind knowing you can access it if you need to through what’s called a redraw facility.

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Home loan redraw facilities basics

What's a redraw facility?

It’s a feature on your home loan that lets you access any repayments that you’ve made above the minimum required repayments.

Reasons to redraw

This money may come in handy to pay for expenses you didn’t see coming, like an emergency or investment opportunity. Or you might want to spend the money on planned things like renovations, holidays or a new car.

Redrawing the surplus funds in your home loan means you may not have to apply for another loan or a credit card. But keep in mind, redrawing your extra repayments will mean those funds are no longer reducing the interest on your home loan.

How much can you redraw?

You can redraw as much as you have in surplus on your eligible home loan. Make sure you're able to make your repayments if you redraw all your surplus.

Can you redraw on a fixed rate home loan?

You can only redraw on a variable rate home loan. If your home loan is on a fixed rate, you'll need to wait until the end of your fixed rate term to redraw.

What's the difference between a redraw facility and an offset facility?

An offset account works like a usual transaction account, you can freely access your money and it 'offsets' your home loan to help you save on interest. A redraw facility lets you access (re-borrow) any extra repayments you've made into your home loan and also helps you save on interest. Speak to us to understand which feature suits your situation best. 

How to use a redraw facility

If you have a variable rate home loan that only needs one person to authorise changes or payments, you can redraw your additional repayments through the Bankwest App and Bankwest Online Banking.

If your loan needs two people to authorise changes or payments, then you'll need to visit your nearest branch.

Repayment holiday

Another way you may be able to use your surplus is to take a break from making your regular scheduled home loan repayments for a period of time. This could be useful if, say, you’re going on parental leave, taking a career break or changing jobs. Our Home Lending Specialists can talk you through what’s possible.

About this article

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Keep reading

See the little and big changes you can make to pay off your home loan sooner.

Wondering about the best way to fund your reno? From redraw to using equity – it depends on the project and your budget.

Need help redrawing your home loan?

Get in touch with a Home Lending Specialist, and they’ll respond within one business day. You can talk on the phone, meet at a branch, or have a Mobile Lending Manager come to you.

The information contained in this article is of a general nature and is not intended to be nor should it be considered as professional advice. You should not act on the basis of anything contained in this article without first obtaining specific professional advice. Also to the extent permitted by law, Bankwest, a division of Commonwealth Bank of Australia ABN 48 123 123 124 AFSL / Australian credit licence 234945, its related bodies corporate, employees and contractors accept no liability or responsibility to any persons for any loss which may be incurred or suffered as a result of acting on or refraining from acting as a result of anything contained in this article.