A redraw facility allows you to access extra repayments you’ve made on your mortgage. Here’s a detailed look at its key points:
Benefits
Access to Funds:
A redraw facility provides access to the extra repayments you’ve made on your mortgage. This can be particularly useful for emergencies or large purchases, offering financial flexibility without the need to apply for a new loan. For more information, visit our Redraw Facility page.
A redraw facility provides access to the extra repayments you’ve made on your mortgage. This can be particularly useful for emergencies or large purchases, offering financial flexibility without the need to apply for a new loan. For more information, visit our Redraw Facility page.
Interest Savings:
By making extra repayments, you reduce the principal amount of your loan, which in turn reduces the interest you pay over the life of the loan. This can help you pay off your mortgage faster and save a significant amount in interest. For more insights, check out our Home Loans page.
By making extra repayments, you reduce the principal amount of your loan, which in turn reduces the interest you pay over the life of the loan. This can help you pay off your mortgage faster and save a significant amount in interest. For more insights, check out our Home Loans page.
Fees
Variable Loans:
Most variable loans don’t charge fees for using the redraw facility. However, some loans may have a minimum redraw amount, so it’s essential to check the specific terms of your loan. For a comprehensive overview, visit our Mortgage Glossary.
Most variable loans don’t charge fees for using the redraw facility. However, some loans may have a minimum redraw amount, so it’s essential to check the specific terms of your loan. For a comprehensive overview, visit our Mortgage Glossary.
Fixed Loans:
For fixed-rate loans, there may be limits on the amount you can redraw without incurring penalties. It’s important to understand these restrictions to avoid unexpected costs. For more details, visit our Advanced Finance Strategies.
Limits
For fixed-rate loans, there may be limits on the amount you can redraw without incurring penalties. It’s important to understand these restrictions to avoid unexpected costs. For more details, visit our Advanced Finance Strategies.
Limits
Restrictions:
Check if there are any restrictions on the amount or frequency of redraws. Some lenders may limit how often you can redraw funds or set a minimum amount for each redraw. Understanding these limits can help you plan your finances more effectively. For more information, visit our Second Home Buyer page.
Check if there are any restrictions on the amount or frequency of redraws. Some lenders may limit how often you can redraw funds or set a minimum amount for each redraw. Understanding these limits can help you plan your finances more effectively. For more information, visit our Second Home Buyer page.
Investors: Interest-Only Loans
Cash Flow Management:
For investors, paying interest-only (IO) can assist with cash flow management. By making only the minimum interest repayments, you can use the rental income to pay down the principal or invest in other opportunities. This strategy can help maximise your investment returns. For more details on interest-only loans, visit our Investment Property page.
For investors, paying interest-only (IO) can assist with cash flow management. By making only the minimum interest repayments, you can use the rental income to pay down the principal or invest in other opportunities. This strategy can help maximise your investment returns. For more details on interest-only loans, visit our Investment Property page.
Role of Mortgage Brokers
Expert Guidance: Discuss with your mortgage broker to understand the features and costs associated with a redraw facility. Brokers can provide tailored advice based on your financial situation and help you navigate the complexities of different loan products. For more information, visit our Mortgage Broker page.
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