How a redraw facility can give you flexibility
One of the great things about life is that it’s full of surprises. Fortunately, redraw can help you deal with any surprising expenses that come your way.
What is redraw? It’s a valuable and flexible way to save yourself interest while investing in your home. We will talk you through it.
What is redraw?
Redraw has been around for more than a decade, and is steadily growing in popularity.
If you’ve made extra repayments (above your minimum repayment amount) on your loan, and it features redraw, then you are able to withdraw that money to finance unexpected expenses as well as planned ones, such as renovations.
Redraw can be easily accessed online and is available instantly, 24/7.
Why should you know about it?
Knowing that you have a flexible source of finance sitting there just in case you need it can give you peace of mind. It can be a cost-effective way to borrow money.
The bonus of making extra repayments on your loan is that you are reducing the amount of interest you pay on your home loan. In the long term this may reduce the term of your loan as well.
How do I know if I have redraw?
To find out more about optimising your home loan, consider getting a free home loan health check.
Talk to a Home Lending Specialist to find out how to set a redraw facility on your loan, or to find out more about how to get the most out of your redraw.
This article is intended to provide general information of an educational nature 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. Commonwealth Bank of Australia ABN 48 123 123 124.