Redraw Facility

A redraw facility may let you access extra repayments already made into a home loan. Those payments reduce the debt; withdrawing them increases it again.

Access depends on the loan

Check the current available redraw balance, fees, transfer timing and restrictions with the lender. It is not a separate savings account. ASIC Moneysmart distinguishes redraw from an offset account, which holds money separately from the loan.

A simple balance example

If a loan balance is $445,000 and a borrower redraws $30,000, the new balance is $475,000 before other transactions, fees and interest. The extra debt can affect future interest and repayments. The Extra Repayments Calculator models extra payments, not a bank's redraw approval or available balance.

Tax treatment needs a separate check

ATO Taxation Ruling TR 2000/2 explains that interest deductibility on further borrowing through redraw depends on how the redrawn funds are used. Mixed private and income-producing uses can require interest apportionment. The property securing the loan alone does not settle that question. Keep transaction records and speak with a registered tax agent; this page does not determine a deduction or recommend a borrowing strategy.

Sources and limitations

• ASIC Moneysmart: Mortgage offset accounts
• ATO: Taxation Ruling TR 2000/2

Sources checked 10 September 2026. Last updated: 10 September 2026. General information only, not financial, credit or tax advice. Access and costs may vary; check the loan terms.