What is home loan redraw?

A redraw facility is a feature available on NAB variable rate home loans. If you’ve made additional payments into your home loan, it means you’ll have money available to take back out of your home loan if you want to. This process is known as redraw. The available amount you can redraw depends on how far ahead you are on your scheduled repayments and will be minus one scheduled repayment. 

How to build and use redraw

To build redraw, deposit lump sums into your home loan or regularly pay more than your minimum scheduled repayments. Here’s an example:

  • Jason’s minimum monthly repayment on his variable rate home loan is $1,000.
  • Every month Jason has been making a payment of $1,500 into his home loan account.
  • Jason now wants to use his available redraw to buy a new fridge.
  • Jason is currently $3,000 ahead of his scheduled home loan repayments and is not in arrears on any other account.
  • He is eligible to redraw up to $2,000 to ensure he is still one scheduled repayment ahead on his home loan. 

Things to consider about redraw

  • You need to meet all eligibility criteria to access redraw.
  • If eligible, you can redraw a minimum of $500 or up to $150,000 per transaction, as often as you like.
  • When you complete a redraw, we will increase your repayment if the repayment amount prior to your redraw is not enough to pay off the loan within the agreed loan term.
  • Your home loan balance will be higher after completing a redraw so the interest portion of your repayments will increase. 
  • Avoid using redraw if you want to pay off your home loan faster.
  • There are some scenarios which require banker assisted redraw, for example, where the borrower is a trust or company. If you’d like to discuss your redraw options, chat to one of our banking specialists in branch, or give us a call on 13 22 65.

Benefits of home loan redraw

Convenience

Withdraw the extra funds you’ve contributed into your home loan rather than applying for a separate loan to fund your next renovation project or personal purchase. It’s simple and easy to access through online banking.

Cost

Building your redraw reduces the interest you pay on your mortgage and potentially allows you to pay off your home loan sooner.

Flexibility

Making additional deposits into your home loan can allow you to take a break from future scheduled repayments as you’re already ahead.

Am I eligible to redraw?

Redraw is available if you meet all the following eligibility criteria.

Why can’t I redraw from my home loan?

Redraw is not available in the following cases.

  • The amount you wish to redraw is less than $500.

  • 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).

  • You have a Defence Home Owner Scheme Loan (DHOS) established on or before 1 July 2010 and a building or construction loan.

  • You want to use redraw for business purposes.

  • You’re not at least one scheduled repayment ahead on your eligible variable rate home loan.

  • You (or any borrowers on the loan) have an account that is overdue or in arrears. Once the overdue account or arrears has been resolved, there can be a delay on the redraw restriction being lifted. 

There are other circumstances when we may cancel or suspend your access to redraw. It's important to view all these circumstances so you're aware of how your redraw can be cancelled or suspended. Read the full list in our important information section.

How to redraw from your NAB home loan

Ready to use some of your available redraw? It’s quick and easy to do online using the NAB app or NAB Internet Banking. Use our guide to learn how.

How to redraw from your home loan

The differences between redraw and offset

While both a redraw facility and an offset account allow you to use your savings to reduce your loan balance, they do work in different ways. Read our article to help you decide which method works best to help you achieve your goals.

Learn more about redraw vs. offset

Explore other home loan topics

How an offset account can benefit your home loan

Learn how best to use an offset account.

The difference between redraw and offset

Compare your redraw facility and your offset account to learn how they can work in different ways to help you meet your goals

Why refinance your home loan?

Find out what refinancing is and why you should consider refinancing your home loan.
View all home and property articles

Our most popular home loans

Choose between a no-frills basic variable loan, variable interest rates or fixed interest rates loans.

Basic variable rate

Take advantage of our simple, low rate home loan with no ongoing fees.

Tailored variable rate with offset

Enjoy extra flexibility and features with a variable rate NAB Tailored Home Loan.

Tailored fixed rate

Gain additional certainty of a fixed interest rate with a NAB Tailored Home Loan.

Help and support

We’re here to help. Learn about the support services and help guides available to you.

Contact us for home loan related queries

This is how you can get in touch.

Start a conversation with a banker

  1. Log into either NAB Internet Banking or the NAB app.
  2. Tap on the message icon.
  3. Type ‘speak to a person’ in the conversation window.

Call us

Speak to a home loan expert about a new or existing home loan.

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13 78 79

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Terms and Conditions

The information contained in this article is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. Before acting on this information, NAB recommends that you consider whether it is appropriate for your circumstances. NAB recommends that you seek independent legal, financial and taxation advice before acting on any information in this article.