Home loans with no minimum redraw amount

A mortgage with no minimum redraw makes it easier to withdraw extra repayments for use in emergencies large or small.

Last updated:

Mortgage redraw is very useful when you need to pull out some of your extra home loan repayments to cover emergencies or expenses.

Many loans have a minimum redraw of $500 or more, which limits the flexibility of this feature. But loans with no minimum redraw let you take out even small amounts of money. This gives you more control over your mortgage.

Get a home loan with free redraw

The loans in the table below all offer redraw without a fee, but some may specifiy a minimum redraw amount.

Rates last updated January 29th, 2020
$
Loan purpose
Offset account
Loan type
Repayment type
Your filter criteria do not match any product
Name Product Interest Rate (p.a.) Comp Rate^ (p.a.) Application Fee Ongoing Fees Max LVR Monthly Payment Short Description
Suncorp Back to Basics Home Loan - Better Together Special Offer $150k+ LVR<=90% Incl. LMI (Owner Occupier, P&I)
3.03%
3.04%
$0
$0 p.a.
90%
Get one free online redraw per month and pay no ongoing fees. Application fees are waived for loans above $150,000.
St.George Basic Home Loan - LVR 60% to 80% (Owner Occupier, P&I)
2.99%
3.01%
$500 (waived for loans above $150,000)
$0 p.a.
80%
Online only cashback offer: Refinancers borrowing $250,000 or more can get a $4,000 cashback for their first application (Other terms, conditions and exclusions apply). Buyers and refinancers can get this competitive variable interest rate. Application fee waived for loans above $150,000.

loans.com.au Smart Home Loan - (Owner Occupier, P&I)
2.88%
2.90%
$0
$0 p.a.
80%
Get one of the lowest variable interest rates on the market and pay 0 application or ongoing fees.
Greater Bank Great Rate Home Loan - Discounted 1 Year Fixed LVR ≤90% ($150K+ Owner Occupier)
2.79%
3.82%
$0
$0 p.a.
90%
Get one of the lowest rates on the market with this fixed rate mortgage. Available with just a 10% deposit. Guarantor option available. NSW, QLD and ACT residents only.
Macquarie Bank Basic Home Loan - LVR ≤ 80% (Owner Occupier, P&I)
3.19%
3.19%
$0
$0 p.a.
80%
Pay no application and ongoing fees and take advantage of split and redraw options.
Bankwest Complete Home Loan Package Variable - $200k+ LVR <=80% (Owner Occupier, P&I)
3.05%
3.50%
$0
$395 p.a.
80%
A low variable rate loan with a 100% offset account and package discounts.
BankSA Basic Home Loan - Promotional Rate (Owner Occupier, P&I)
2.99%
3.01%
$500 (waived for loans above $150,000)
$0 p.a.
80%
Online only cashback offer: Refinancers borrowing $200,000 or more can get a $4,000 cashback for their first application (Other terms, conditions and exclusions apply). Buyers and refinancers can get this competitive variable interest rate. Application fee waived for loans above $150,000.
Bank of Melbourne Basic Home Loan - LVR above 60% up to 80% (Owner Occupiers, P&I)
2.99%
3.01%
$500 (waived for loans above $150,000)
$0 p.a.
80%
Online cashback offer: Refinancers borrowing $250,000 or more can get a $4,000 cashback for their first application (Other terms, conditions and exclusions apply). A low variable interest rate for home buyers and refinancers. Application fee waived for loans above $150,000.
St.George Fixed Rate Advantage Package - 5 Year Fixed Rate LVR up to 60% (Owner Occupier, P&I)
2.84%
3.60%
$0
$395 p.a.
60%
UBank UHomeLoan Variable Rate - Discount offer for Owner Occupiers, P&I Borrowing over $200,000
2.84%
2.84%
$0
$0 p.a.
80%
Enjoy flexible repayments, a redraw facility and the ability to split your loan. Plus, pay no application or ongoing fees.
loans.com.au Essentials - Variable (Owner Occupier, P&I)
3.04%
3.06%
$0
$0 p.a.
90%
A simple mortgage with a competitive interest rate and no application or monthly fees. Borrow up to $2000000 from a convenient online lender.
Adelaide Bank SmartFix Home Loan - 3 Year Fixed Rate (Owner Occupier, P&I)
2.91%
3.25%
$375
$15 monthly ($180 p.a.)
95%
A fixed rate home loan with free redraw and a minimum amount of $500.

Compare up to 4 providers

How does a home loan with a redraw facility work?

A mortgage with a redraw facility lets you make extra repayments on top of your minimum monthly repayments. This helps you pay off your loan faster. A redraw facility lets you withdraw those extra repayments if you need them. This is very helpful when you need some extra cash in emergencies or unforeseen circumstances.

Most redraw facilities have a limit on the minimum withdrawal amount, with most encouraging larger withdrawals.

Redraw facility: example scenario

The amount of money you redraw from a mortgage can change your debt significantly.

If your home loan requires you to make repayments of $800 every month but you make $900 repayments, you will have made extra repayments of $1,200 in a year. Because there is no minimum redraw amount, you can withdraw as little as $200. This amount will not have a significant impact on your loan because your debt is still reduced by an extra $1,000.

However, if the home loan had a minimum redraw amount of $1,000, you would be forced to withdraw that much leaving you with an extra repayment of only $200. Not having a minimum amount allows you to make your extra repayments count.

Learn more about redraw and how it differs from an offset account

How do I compare a mortgage that has no minimum redraw amount?

  • Redraw terms and conditions. Lenders all have different terms and conditions. These range from limits on the number of redraws you can make per year or a specified term to free redraws. Be sure to check the fine print before choosing a loan.
  • Fees. Fees are an important consideration when comparing loans. Some lenders could charge you for using your redraw facility.
  • Access. Compare the ways your the mortgage lets you access extra repayments. Some banks allow you to access your redraw facility through online banking, mobile apps and phone banking or even via a credit card.
  • Interest rates. Compare the different interest rates offered by the lender. Whether you go for a fixed, variable or a split rate, you need to ensure that you are getting competitive interest rates.

The pros and cons of mortgages with no minimum redraw

Pros

  • No minimum limit. Most home loans with redraw facilities have limits on the minimum amount of additional repayments you can withdraw. Some of these limits are as high as $1,000. Loans with no redraw minimum let you withdraw small funds without being pressured to take out more than you need.
  • Access your funds when you need them. If you make additional repayments you don’t have to worry about getting an extra loan to cover emergencies. You have access to funds when you need them and this could be useful for unforeseen financial emergencies.
  • Redraw doesn’t affect your scheduled repayments. The withdrawals you make do not affect your loan amount since you can only withdraw extra repayments.

Cons

  • Frequency limits. While there is no minimum redraw amount, there might be limits on the number of times you can access this facility. You might not be able to redraw funds on a regular basis because of these limits.
  • Extra fees. There may be extra fees that apply when you use the redraw facility.
  • Typically not available with fixed rate home loans. There may be extra fees that apply when you use the redraw facility with a fixed rate home loan.

Compare more mortgages from across the market

Image: Shutterstock

Related Posts

Home Loan Offers

Important Information*
Logo for St.George Basic Home Loan - LVR 60% to 80% (Owner Occupier, P&I)
St.George Basic Home Loan - LVR 60% to 80% (Owner Occupier, P&I)

Online only cashback offer: Refinancers borrowing $250,000 or more can get a $4,000 cashback for their first application (Other terms, conditions and exclusions apply). Buyers and refinancers can get this competitive variable interest rate. Application fee waived for loans above $150,000.

Logo for UBank UHomeLoan Variable Rate - Discount offer for Owner Occupiers, P&I Borrowing over $200,000
UBank UHomeLoan Variable Rate - Discount offer for Owner Occupiers, P&I Borrowing over $200,000

Take advantage of a low-fee mortgage with a special interest rate of just 2.84% p.a. and a 2.84% p.a. comparison rate.

Logo for Suncorp Back to Basics Home Loan - Better Together Special Offer $150k+ LVR<=90% Incl. LMI (Owner Occupier, P&I)
Suncorp Back to Basics Home Loan - Better Together Special Offer $150k+ LVR<=90% Incl. LMI (Owner Occupier, P&I)

Get one free online redraw per month and pay no ongoing fees. Application fees are waived for loans above $150,000.

Logo for loans.com.au Essentials - Variable (Owner Occupier, P&I)
loans.com.au Essentials - Variable (Owner Occupier, P&I)

A competitive interest rate home loan with interest only options. Interest rate 3.04% p.a.
comp rate of 3.06% p.a.

Ask an Expert

You are about to post a question on finder.com.au:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com.au is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our Terms of Use, Disclaimer & Privacy Policy and Privacy & Cookies Policy.
Ask a question
Go to site