What Is A Home Loan Redraw Facility?


Getting the Most Out of a Redraw Facility vs Offset Account Rate Comparison
Getting the Most Out of a Redraw Facility vs Offset Account Rate Comparison from ratecomparison.com.au

What is a Home Loan Redraw Facility?

What is a Home Loan?

A home loan is a type of loan used to purchase a property or land. It is a loan secured against the value of the item that is being purchased. Home loans are typically taken out by individuals and families to purchase a house or other real estate property.

What is a Redraw Facility?

A redraw facility is a feature offered by some home loan lenders, which allows customers to withdraw additional funds from their loan account. When you make extra payments on your home loan, or when you make one-off lump sum payments, you can withdraw these funds from your loan account as extra funds.

Benefits of a Redraw Facility

The main benefit of a home loan redraw facility is that it provides customers with access to their own funds, without having to take out a new loan. This makes it a convenient way to access funds for emergency expenses, or to make a large purchase without taking on any additional debt.

How Does a Redraw Facility Work?

A redraw facility works by allowing customers to withdraw additional funds from their home loan. Customers can access these funds as needed, and they don’t have to make additional payments or take out a new loan. The funds are still secured against the value of the property, so customers don’t have to worry about incurring additional debt.

Things to Consider Before Using a Redraw Facility

When using a redraw facility, it’s important to consider a few things before withdrawing extra funds. First, make sure that you understand the terms of your home loan agreement and the fees associated with using the redraw facility. You also want to make sure that you are using the funds for the right reasons, and that you are able to budget for future payments.

Where to Find a Redraw Facility

Most home loan lenders offer a redraw facility as part of their home loan products. You can find out whether or not your lender offers this feature by asking them directly, or by checking their website. In addition, there are a number of online lenders who offer home loan redraw facilities as well.

Conclusion

A home loan redraw facility is a great way to access additional funds if you need them. Before taking advantage of this feature, make sure that you understand the terms of your home loan agreement, and the fees associated with using the redraw facility. You can find out more information by asking your lender directly, or by checking their website.


facility home loan redraw what
Join the conversation
Post a Comment
Top comments
Newest first
Table of Contents
Link copied successfully.