Redraw Facility

Loans with a redraw facility allow you to put extra money into your loan. You can take the money back out again when you need it.

Over time these payments can significantly reduce your interest payments and the life of your loan. If you think that you might be able to pay a little bit extra into your mortgage, either regularly or intermittently, then this type of loan might work well for you.

Some lenders charge a fee to activate this feature, and/or a fee each time you redraw, so you need to take these costs into consideration.