What’s a Mortgage Redraw Facility?

How does home loan redraw work?

How does an Offset Account work?

Redraw facilities are a handy feature of most variable rate home loans which allow you to access any extra repayments you’ve made on your mortgage.

It’s always a great idea to make extra repayments on your home loan since it will help you pay off the debt sooner. But if times get tough or if you just want access to extra funds for a hot moment, you can redraw some of the extra repayments for some quick cash.

Most lenders will offer a redraw facility with variable rate home loans. But you’ll be hard pressed to find a fixed rate with redraw.

You could have access to redraw on the following Lend Ezy loans


Other benefits of redraw

Redraw grants more than just access to extra repayments. Every cent you repay above the minimum home loan repayment requirement counts toward lowering the interest you pay on the principal of the loan.

Find out how quickly you could pay off your loan with the Lend Ezy Extra Repayment Calculator

If you have a $150,000 loan with $20,000 made in extra repayments, you’ll only be paying interest on $130,000 of that principal. You also have access to that $20,000 which if withdrawn, will bring interest paid on the loan back to $150,000.

In this way, it is similar to an offset account. The main difference is that redraw applies to the actual home loan account, whereas offset accounts are separate transactional accounts which can be used much like an everyday savings or spending account.



  • A redraw facility lets you access any additional repayments you’ve made on your home loan
  • Having a healthy amount available in redraw helps reduce interest paid on your loan
  • Redraw differs from an offset account as it’s a facility of the main loan account and non-transactional, not a separate linked account.
  • Different lenders have different rules surrounding redraw, check with the lender.