One of the benefits of making extra repayments on your home loan is being able to redraw some of those funds when you need them. To make the most of this feature of your home loan we explain how it works and how you can use redraw to achieve small or large goals.

What is redraw?

Chances are if you’ve made a habit of paying more than your minimum scheduled repayments, then you’ll have money available for redraw from your home loan.

You may want to use this money to pay for unexpected expenses that pop up or for planned things such as holidays, renovations, school fees or a new car just to name a few. (You can’t use your redraw for business purposes.)

There may be some circumstances where redraw is not available to you. For example:

  • If you have a fixed rate loan, redraw is only available at the end of the fixed rate period (i.e. when the rate becomes variable)
  • Redraw is not available for construction loans or Defence Home Owners Loan

Please speak to a NAB home loan specialist on 13 40 83 to discuss your options.

Features of redraw

With our redraw facility there’s no redraw fee, you can redraw as little as $500 or up to $150,000 and you can redraw as often as you like. You can access all the funds you are ahead by minus one month’s scheduled repayment.

After you redraw money from your home loan, you must continue to make your regular repayments. But you must remember that the interest part of your repayments will increase because you are now paying interest on a higher loan amount.

What are the benefits of redraw?

Knowing that you may have a source of finance sitting there, in case you need it, can give you ‘peace of mind’. The extra money you pay off your home loan accumulates over time and it’s easy to access. You won’t need to apply for another type of credit or loan.

Using your redraw facility can be cheaper than using a credit card or personal loan as the interest charged on your home loan is usually lower than with other types of credit.

How do I use a redraw facility?

You can use internet banking to see if redraw is available with your loan and how much you have available to use. If you have funds available you can redraw these straight away in internet banking.

You can also chat to a banking specialist in branch or call us on 13 40 83 to discuss your redraw options.


After more information?Other related articles

Pay less interest on your home loan with 100% offset

If you have a variable rate home loan, a 100% offset account can save you thousands in interest - and help you pay off your mortgage faster.

Is a debt consolidation loan right for you?

Consolidating your debts into one place makes a lot of sense. Fewer fees, lower interest – and way less stress

Understanding our different types of home loans

Not sure which type of home loan to choose? Here we explain all of our different loan types and packages.

Our home loan dictionary

We’ve put together a glossary of home loan terms to help you understand what they all mean.

After more information?Related products and services

Credit cards

Whether you're looking for our lowest interest rate, a low fee card or a card that rewards you for everyday spend, we have a credit card to match.

Life insurance

Thinking about life insurance? At NAB we can protect you with cover for funeral costs, critical injuries and more.

Home loans

NAB offers flexible home loans to suit you whatever stage you’re at. Buying a home, investing, renovating, refinancing.

We're ready to help you

Talk to an expert
Call 13 22 65

Mon-Fri 8am - 7pm (AEST/ADST)
Sat-Sun 9am - 6pm (AEST/ADST)