Redraw Facility Calculator
Calculate how extra repayments build your redraw balance and save interest on your home loan.
Home Loan Redraw Calculator
See how extra repayments create accessible funds while reducing your mortgage interest
Understanding Redraw Facilities
What is a Redraw Facility?
A redraw facility allows you to access extra repayments you've made on your home loan. When you pay more than the minimum required, that excess builds up as a "redraw balance" that you can withdraw when needed, providing both interest savings and financial flexibility.
Benefits of Using Redraw
- Reduce total interest paid on your loan
- Shorten your loan term significantly
- Access to emergency funds when needed
- Often lower fees than offset accounts
- Flexibility to adjust repayments
Redraw vs Offset Account
- Redraw: Extra payments go into loan, withdraw when needed
- Offset: Separate account, balance offsets loan interest
- Offset offers more flexibility for daily use
- Redraw often has lower or no ongoing fees
- Both reduce interest on your home loan
Things to Consider
- Check minimum redraw amounts with your lender
- Be aware of any redraw fees
- Redrawing increases your loan balance
- Some loans limit number of free redraws
- Interest benefit lost when you redraw