Home loans with no minimum redraw amount

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

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 24th, 2019
$
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
3.69%
3.72%
$445
$0 p.a.
90%
NSW and ACT customers only. Get a special discount for a limited time when you open an IMB Transaction Account.
3.54%
3.58%
$0
$0 p.a.
80%
Get a competitive rate, save on fees and access a 100% offset account plus redraw facility. $900 cashback offer.
3.98%
3.98%
$0
$0 p.a.
70%
Investors can get a 100% offset account and a low rate if they have a big deposit. 100% online application process.
3.59%
3.63%
$0
$0 p.a.
90%
Get a low variable interest rate and buy a property with just a 10% deposit. 100% offset account attached.
3.72%
3.74%
$0
$0 p.a.
80%
Save on interest by taking advantage of a 100% offset account along with no ongoing fees or application fees.
3.69%
4.75%
$0
$395 p.a.
90%
Enjoy a competitive rate with no application fee for this package loan.
3.59%
3.59%
$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.
3.83%
4.89%
$0
$395 p.a.
80%
A flexible 3 year fixed rate loan you can use to buy your own home.
3.57%
3.58%
$0
$0 p.a.
80%
Get a very low interest rate and avoid big fees. Apply online for full approval in under 30 minutes and add a 100% offset account for $10 a month.
3.74%
3.79%
$499
$0 p.a.
80%
Competitive variable investor mortgage to fund your property portfolio. You can add a 100% offset account for just $10 a month.
3.79%
3.79%
$0
$0 p.a.
80%
Access an offset account and pay no application or ongoing fees on this special variable rate for owner-occupiers.
3.89%
4.27%
$0
$395 p.a.
80%
New borrowers or refinancers can get a discounted rate with this package loan.
3.68%
3.70%
$0
$0 p.a.
80%
A competitive variable rate mortgage for owner occupiers that comes with a no fee debit card with a $5,000 limit.
3.89%
3.91%
$0
$0 p.a.
80%
This variable rate loan keeps the features simple and fees low. This loan is offered by a 100% online lender.
3.49%
4.57%
$0
$395 p.a.
90%
Loans over $150000 get a discount off an already low fixed rate. Available for NSW, QLD and ACT residents only.
3.64%
3.66%
$0
$0 p.a.
80%
A simple mortgage with a competitive interest rate and no application or monthly fees. Borrow up to $2000000 from a convenient online lender.
3.72%
3.72%
$0
$0 p.a.
90%
New customers can get a discounted variable rate and a fee-free redraw facility. NSW, QLD and ACT residents only.
3.59%
3.61%
$0
$0 p.a.
90%
Get a low interest rate loan with no ongoing fees. Plus you can make extra repayments and free redraw online. Available with just a 10% deposit.
3.75%
3.75%
$0
$0 p.a.
70%
A simple mortgage with no application or ongoing fees that has extra repayments plus split and redraw options. Requires a 30% deposit.
3.99%
4.66%
$375
$15 monthly ($180 p.a.)
95%
A fixed rate home loan with free redraw and a minimum amount of $500.
4.14%
4.56%
$0
$395 p.a.
90%
Package your loan with an eligible credit card for discounts on rates and fees, and get a 100% offset account. Get a $1,500 cashback (conditions apply).

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

Richard Whitten

Richard is a home loans expert at finder. He can help you navigate the complex world of home loans and find a better deal.

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Take advantage of a low-fee mortgage with a special interest rate of just 3.59% p.a. and a 3.59% p.a. comparison rate.

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Get a low interest rate loan with no ongoing fees. Plus you can make extra repayments and free redraw online. Available with just a 10% deposit.

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A competitive interest rate home loan with interest only options. Interest rate 3.64% p.a.
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Tic:Toc Live in Loan Variable Rate - Principal & Interest

Get a very low interest rate and avoid big fees. Apply online for full approval in under 30 minutes and add a 100% offset account for $10 a month.

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