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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.

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.

Data indicated here is updated regularly
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Loan purpose
Offset account
Loan type
Repayment type
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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)
2.78%
2.79%
$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. Eligible refinancers can receive a cashback of $2,000 or more.
IMB Budget Home Loan - Special LVR <=90% (Owner Occupier, P&I, NSW and ACT borrowers only)
2.78%
2.84%
$449
$0 p.a.
90%
NSW and ACT customers only. You can get an interest rate discount for a limited time with this competitive variable mortgage.
ME Flexible Home Loan Fixed with Members Package - 2 Year Fixed Rate LVR <= 80% (Owner Occupier, P&I)
2.49%
3.41%
$0
$395 p.a.
80%
Lock in a competitive rate for owner occupiers for two years. Comes with a 100% offset account.
Newcastle Permanent Building Society  Premium Plus Package Fixed Rate - 1 Year Fixed (Owner Occupier, P&I)
2.39%
3.85%
$0
$395 p.a.
95%
Enjoy a competitive rate with no application fee for this package loan.
Bankwest Complete Home Loan Package Variable - $200k to <$750k LVR <=80% (Owner Occupier, P&I)
2.73%
3.18%
$0
$395 p.a.
80%
A low variable rate loan with a 100% offset account and package discounts.
IMB Fixed Rate Home Loan - 2 Year Fixed (LVR 90% Owner Occupier, P&I, NSW and ACT borrowers only)
2.39%
3.14%
$449
$6 monthly ($72 p.a.)
90%
NSW and ACT customers only. 2 years fixed interest terms and free access to redraw facility online. Available with a 5% deposit.
CUA Achieve Variable Home Loan - $500k+ (Owner Occupier, P&I)
2.73%
2.78%
$600
$0 p.a.
95%
Home buyers can get a competitive, low-fee variable rate plus a 100% offset account. Low deposit option available. Eligible new home buyers with low deposits can apply for the First Home Loan Deposit Scheme with this lender and avoid LMI costs.
HSBC Home Value Loan - Promotional Offer (Owner Occupier P&I)
2.65%
2.66%
$0
$0 p.a.
80%
Get a low interest rate loan with no ongoing fees. Plus you can make extra repayments and free redraw online.
Newcastle Permanent Building Society Premium Plus Package Home Loan - New Customer Offer Discount 1 ($150k+ Owner Occupier, P&I)
2.94%
3.34%
$0
$395 p.a.
95%
New borrowers or refinancers can get a discounted rate with this package loan.
UBank UHomeLoan Variable Rate - Discount offer for Owner Occupiers, P&I Borrowing over $200,000
2.59%
2.59%
$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.
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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

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Related Posts

Home Loan Offers

Important Information*
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 2.59% p.a. and a 2.59% p.a. comparison rate.

Logo for HSBC Home Value Loan - Promotional Offer (Owner Occupier P&I)
HSBC Home Value Loan - Promotional Offer (Owner Occupier P&I)

Get a low interest rate loan with no ongoing fees. Plus you can make extra repayments and free redraw online.

Logo for ME Flexible Home Loan Fixed with Members Package - 2 Year Fixed Rate LVR <= 80% (Owner Occupier, P&I)
ME Flexible Home Loan Fixed with Members Package - 2 Year Fixed Rate LVR <= 80% (Owner Occupier, P&I)

Lock in a competitive rate for owner occupiers for two years. Comes with a 100% offset account.

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. Eligible refinancers can receive a cashback of $2,000 or more.

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