What is redraw?
If you make extra repayments on your home loan, a redraw facility lets you take the extra money out again if you need it. So rather than saving your money in a separate account, you can reduce the amount of interest charged on your loan―by paying more than you have to—and access the extra money when you need it.
Why would you use it?
A redraw gives you extra cash to do things like pay bills or do renovations without having to apply for another loan. You can use it as many times as you like to draw down money, as long as you don’t exceed the credit limit on your loan.
What should I watch out for when using the redraw facility?
The downside of a redraw facility is that there could be fees or withdrawal restrictions placed on the amount you can redraw. The upside of this is it prevents you from making too many withdrawals and might help stop you from spending more money than you can afford.
Which home loan products is redraw available on?
Redraw is available on:
- Professional Pack Variable Rate Loan
- Professional Pack Line of Credit
- AMP Essential Home Loan
- Land Loan
Redraw is not available on:
- Fixed Rate Loans
- Construction Loan
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What you need to know
The product issuer and credit provider is AMP Bank Limited ABN 15 081 596 009, AFSL and Australian credit licence 234517.
It’s important to consider your circumstances and read the relevant Product Disclosure Statement or Terms and Conditions before deciding what’s right for you. This information hasn’t taken your circumstances into account. Information including interest rates is subject to change without notice.
Any application is subject to AMP Bank’s approval. Terms and conditions apply and are available at amp.com.au/bankterms or 13 30 30. Fees and charges may be payable. Full details are available in the Fees and charges guide.
This information is provided by AMP Bank Limited. Read our Financial Services Guide available at amp.com.au/fsg for information about our services, including the fees and other benefits that AMP companies and their representatives may receive in relation to products and services provided to you. All information on this website is subject to change without notice.
AMP Bank is a member of the Australian Banking Association (ABA) and is committed to the standards in the Banking Code of Practice.
A target market determination for these products is available on our TMD page.