What is redraw?

A redraw facility allows you to access additional repayments that you've made on your home loan over and above the minimum required repayments.

Redraw is available on most CommBank variable rate home loans, and there are no fees to redraw.

For more about redraw, please read our Redraw guide (.pdf)

Benefits of redraw

Less interest

Any money available in your redraw – whether its $10 or $10,000 – reduces the balance owing on your home loan. This means you’ll be paying less interest on your home loan. 

Flexibility in managing your available redraw

You can make additional one-off lump sum repayments or regularly pay more than your minimum required repayment. This may reduce the time it takes you to pay off your home loan and build up the redraw balance you have available to withdraw later.

Remember, if you choose to withdraw money from your available redraw, your home loan balance, repayments and the time it takes to pay off your loan will increase. 

Repayment holiday

Having redraw may also give you the opportunity to take a break (repayment holiday) from upcoming scheduled repayments. You may be able to use the additional repayments you’ve made to put future repayments on hold for a period of time (from three to up to 12 months), giving you the control to use your money when it’s needed the most. 

To apply for a repayment holiday from your existing CommBank home loan, you can call us on 13 2224 or visit your nearest branch.

Do I have access to redraw?

Redraw is available on most CommBank variable rate home loans, and there are no fees to redraw. You should have access to redraw unless your home loan is one of the following products:

  • Fixed Rate home loans
  • Economiser Interest Only home loans
  • 3 Year Economiser Interest Only home loans
  • Where there is a second or subsequent mortgage to another financial institution.

If you're switching your home loan, you should consider if the new loan type has a redraw facility. For example, if you switch from a Standard Variable Rate home loan to a Fixed Rate home loan you'll lose access to a redraw facility during the fixed rate period.

You can find out how much you have available for redraw at any time in NetBank under your home loan account’s ‘Available funds’ and in the CommBank app.

See redraw in NetBank

How redraw works

How does redraw become available?

When you take out a home loan, you agree to make your minimum required repayment every week, fortnight or month over the life of your loan. Should you choose to make additional repayments over and above what is required, this becomes ‘Available Redraw’. You can check your available redraw balance for your eligible CommBank home loan in NetBank or the CommBank app.

Why is there a difference between my total redraw account balance and the available redraw balance?

The total redraw balance shows the amount you’re ahead on your loan, which increases as you make additional repayments. This will include any repayments made towards your next monthly minimum repayment, uncleared cheques and pending redraw adjustments. 

The available redraw balance will not include repayments made towards your next monthly minimum repayment or uncleared cheques, and may have been adjusted on your monthly repayment date. 

Tell me more about repayments

How redraw works over the life of a loan

The available redraw on your home loan may reduce so that by the end of your agreed loan term, both your loan balance and the available redraw will be zero. Adjustments to your available redraw will occur on your monthly repayment date to help manage this. 

The rate at which your redraw balance will reduce depends on a number of factors and is different for every customer.

To see an example of what this looks like, and for more information on how redraw works please refer to our Redraw guide.

Redraw vs offset

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

Redraw allows you to withdraw money you've contributed towards your home loan over and above your minimum required repayment. The money in your redraw account may reduce over the life of your loan so that, by the end of your agreed loan term, both your loan balance and the available redraw will be zero.

A CommBank Everyday Offset is a separate account linked to your eligible Standard Variable Rate home loan or Investment home loan, while redraw is a feature available on some eligible variable rate home loans. Both can help:

  • reduce the amount of interest you pay on your home loan
  • pay off your home loan sooner

If you’re currently using a redraw facility to deposit money that you plan on using later, an Everyday Offset may be more suitable if you plan on using the money more regularly.

Tell me more about redraw vs offset

Other important things to know about redraw

  • Please note that withdrawing from your available redraw, including transfers to an offset account, may cause your repayment amounts to increase.
  • If you chose to make Interest Only payments, amortisation of redraw will not occur for the length of the Interest Only term.
  • If you’re switching your loan, you should consider if the new loan type has a redraw facility. For instance, if you switch from a Standard Variable Rate to a Fixed Rate home loan you will no longer have access to a redraw facility during the fixed-rate period. However, if you make additional repayments during a fixed rate period, or had available redraw when you entered your fixed rate period, the amount available for redraw at the end of the fixed rate period may be lower.
  • Sometimes your financial circumstances can change in ways you haven’t anticipated or prepared for. If you’re finding it hard to meet home loan repayments, we can help

Things you should know

Applications are subject to credit approval. Full terms and conditions will be included in our loan offer. Fees and charges are payable. As this advice has been prepared without considering your objectives, financial situation or needs, you should consider its appropriateness to your circumstances before acting on the advice.