What is a Redraw Facility on a Home Loan?
One of the great features of a home loan is the ability to redraw any of the money you’ve made in extra payments on your mortgage.
It’s a handy service for those needing access to a lump sum of cash and is often used for household renovations or unexpected expenses.
The biggest drawcard is that the compound interest you are making on your mortgage payments is most likely more than you’d get from a savings account. Savvy borrowers know this means more bang for their buck and that if they exercise restraint they can save thousands of dollars over the life of their loan.
The only drawback?
Depending on your lender, you may have different fees and restrictions on your withdrawals. It always pays to speak to a broker, who can advise you on which loans will work for you, if you are factoring redraw into your home loan plan.
I am happy to chat with you about these facilities or any other questions you have.
My Very Best To You Always,
