Be smart with your equity - 7 reasons why your mortgage sucks!
A redraw facility could enable you to access any extra funds you have paid into your mortgage - giving you flexibility, as well as peace of mind in managing your account.
The advantage of a redraw facility is you can put as much money as possible into your mortgage, which keeps interest down and enables you to pay off your mortgage longer, but you will still be able to access the funds, should you ever need them in the future.
It’s also possible to use those funds to consolidate debts with higher interest rates such as credit cards and personal loans. Often, your home loan interest rate is a fraction of other interest rates and consolidating your loans can lower your interest, freeing up your income for other purposes.
Get started:
You can check if your loan offers a redraw facility that enables you to access and withdraw additional repayments you have made. If you were worried about putting extra money into your mortgage, you don’t need to be, if you have a redraw facility.
Many lenders have a minimum redraw amount plus a fee every time you use it. So, it’s important to check what the costs and conditions are for your specific loan. Ask your mortgage broker to help you understand the details of your redraw facility or to help you find loan options with redraw facilities.