{"id":7819,"date":"2023-01-23T12:00:04","date_gmt":"2023-01-23T01:30:04","guid":{"rendered":"https:\/\/adelaideprivatewealth.com.au\/how-to-access-funds-available-from-your-home-loan\/"},"modified":"2023-01-23T12:00:04","modified_gmt":"2023-01-23T01:30:04","slug":"how-to-access-funds-available-from-your-home-loan","status":"publish","type":"post","link":"https:\/\/adelaideprivatewealth.com.au\/how-to-access-funds-available-from-your-home-loan\/","title":{"rendered":"How to access funds available from your home loan"},"content":{"rendered":"
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If you need extra cash, you may be able to redraw or borrow against your home loan. Keep reading to find out whether these options are right for you.<\/p>\n

Can I redraw?<\/h3>\n

Chances are if you\u2019ve made a habit of paying more than your minimum scheduled repayments, then you\u2019ll have money available for redraw. If you have\u00a0internet banking, you may be able to check what, if any, funds you\u2019ve available to redraw.<\/p>\n

You could use this money to pay for unexpected expenses that pop up or for planned things such as holidays, renovations, school fees or a new car just to name a few. You can\u2019t use your redraw for business purposes however.<\/p>\n

Sometimes fixed rate loans have restrictions. Variable-rate loans are usually more flexible when it comes to redraw. Check with your\u00a0banking specialist\u00a0to see if it\u2019s available with your loan or look at switching if it\u2019s a feature you would like. Keep in mind that redraw is not available for construction loans.<\/p>\n

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How does redraw work?<\/h3>\n

The cheapest way to redraw funds is usually online through\u00a0internet banking. But if this isn\u2019t an option for you, check how much it will cost to redraw over the phone with your current lender.<\/p>\n

The amount you can redraw at a time depends on how far ahead you are of your scheduled repayments. There\u2019s usually a minimum and maximum amount you can redraw. It\u2019s important to check how much you have available to redraw before you make any commitments.<\/p>\n

After you redraw funds from your home loan, your loan\u2019s contract still applies, and you need to make your next scheduled repayment by the due date. It\u2019s important to remember that the interest part of your repayments will increase because you are now paying interest on a higher loan amount.<\/p>\n

A redraw facility may be cheaper than using a\u00a0credit card\u00a0or\u00a0personal loan\u00a0as the interest charged on your home loan is usually lower than with other types of credit.<\/p>\n

Before making any commitments, it\u2019s important to check how much you have available, and what your options are.<\/p>\n

The lowdown on home loan top-ups<\/p>\n

The benefits<\/strong><\/p>\n

Topping-up (increasing your loan amount) allows you to access the equity accrued in your house. Like a redraw, you can use a top-up for all sorts of expenses. These include:<\/p>\n