Redraw January 31, 2016
The vast majority of variable rate loans have the redraw feature, few fixed rate loans have this feature (but some do).
Redraw allows you to redraw from your home loan repayments you have made over and above the minimum.
That is, you are able to draw back the advance payments you have made to your loan. You may use these funds for any worthwhile personal purposes, for example:
- Home improvements
- Updating the car
- A holiday
- Buying shares
Redraw allows you to accelerate the repayments on your home loan, with the comfort knowing that if something unexpected occurs you can withdraw your advance payments.
This will help you to pay your loan off quicker.
Lenders, may or may not charge you a redraw fee and may or may not have a minimum amount that can be redrawn.
Better Choice Mortgage Services is not responsible for, and expressly disclaims all liability for, damages of any kind arising out of use, reference to, or reliance on any information contained within this website. While the information contained within this website is periodically updated, no guarantee is given that the information provided in this website is correct, complete, and up-to-date. Although the Better Choice Mortgage Services website may include links providing direct access to other internet resources, including websites, Better Choice Mortgage Services is not responsible for the accuracy or content of information contained in these websites. Links from Better Choice Mortgage Services to third-party sites do not constitute an endorsement by Better Choice Mortgage Services of the parties or their products and services. The appearance on the website of advertisements and product or service information does not constitute an endorsement by Better Choice Mortgage Services, and Better Choice Mortgage Services has not investigated the claims made by any advertiser. Product information is based solely on material received from suppliers. Advanced Finance (Pty) Ltd t/a Better Choice Mortgage Services are not financial planners or accountants and we would encourage our clients to seek professional advice before acting on any a financial or taxation information in this news post.