Our clients often ask us what redraw is, and how they can access it.
So, what is redraw?
Redraw is when you pay over and above your minimum home loan repayment. If this occurs, the funds go into a redraw account and the loan balance and interest charged is reduced accordingly.
And how do I access redraw?
The funds in the redraw account are accessible either by going into the bank or via the internet.
However, most banks put a minimum limit of how much you are able to withdraw from this account usually between $1000 to $2000. Some banks will also charge a fee if you withdraw from a branch.
One thing to always be aware of is if you withdraw from your redraw account the loan balance will increase by that amount.
For further advice on redraw or your loan options, contact us today at Mortgage Choice Joondalup & Clarkson on (08) 9485 0090.
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