When you have 'available redraw', which is the amount by which you're ahead of your scheduled repayments i.e. the amount you can access, you can: Withdraw it in lump sum to buy a car, renovate your property etc. Choose to make reduced repayments.

What happens when you redraw on a loan?

Redraw lets you access extra principal repayments you've made on your loan. This could come in handy if you need some extra cash down the track. ... By putting in a little extra, you could pay off your home loan sooner by reducing the interest charged over the life of the loan.

Can I use my redraw to pay my mortgage?

To be able to use a redraw facility, you first need to make additional payments on top of your minimum loan repayment schedule. This includes one-off lump sum repayments or regularly paying a certain amount – say $50 or $100 – more than the required minimum repayment.