Home loan redraw facility explained 

When you make extra repayments on your 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.

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.

Keep in mind

Redrawing your extra repayments will mean those funds are no longer reducing the interest on your home loan.

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, and there's no minimum withdrawal amount.

You can also use other methods of redraw, such as over the counter, with our variable rate and fixed rate home loans, and there's no minimum withdrawal amount.

How much can you redraw?

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

Find out more about how to redraw, depending on the type of home loan you have.

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.

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Ask an expert 

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.