Redraw

Redraw is the ability to draw back repayments that have been made over and above the minimum required. Money can only be withdrawn up to the balance the mortgage would have been at the date if only standard monthly repayments had been paid.

As an example, if you required to pay $1000 per month but paid $1200 instead, after six months you would only be allowed to redraw the extra $1200. If used properly, a redraw facility can save you an interest charges while allowing you easy access to the additional repayments.