Redraw from your home loan, personal loan or business loan

We explain how redraw works and how you can access your extra loan repayments with Heritage Bank.

Dog in kitchen of new home

Whether it’s for a holiday, renovation or something unexpected, having access to payments you’ve made in advance on your home or personal loan can give you extra peace of mind. 

That’s where the redraw option can come in handy. If you’ve made payments above the minimum required amount for your eligible Heritage home or personal loan you may be able to request to ‘redraw’ the extra funds.

As you’re accessing funds from additional repayments you’ve made, you can continue paying off your loan without extending the original loan term. Keep in mind that when you redraw from your available balance on your home loan, your current balance owing will increase. Your interest is calculated on the amount of money you owe on your loan, so if this increases your interest costs will too.

How does redraw work?

Different lenders have different allowable minimum and maximum amounts that you can redraw.

At Heritage the minimum amount you can redraw is $1 with the maximum amount dependent on your existing online banking limits.

Here’s a specific example:

  • Say for instance you have made additional payments of $1,000 over and above your minimum monthly repayments you can at any stage withdraw those funds from an eligible home or personal loan.
  • Although you can redraw all of those funds it is strongly recommended that you leave one month’s minimum repayment on your loan at all times. This will ensure that your account does not go into arrears if you accidentally forget the date of your next repayment. 

Redraw vs. Offset Accounts

Offset accounts and having extra funds sitting on your loan to use at a later stage can have the same potential benefit – to save on the interest you pay on your eligible loans. 

But what’s the difference?

  • An offset works like an everyday transaction account where you can withdraw funds from an ATM and makes purchases using a visa debit card. 
  • Redraw isn’t an account, rather, it’s a feature attached to your eligible home or personal loan. It’s better suited to bigger one-off purchases and doesn’t have the same convenience or flexibility as an offset account.

How do I use redraw at Heritage?

Redrawing funds at Heritage works the same way as when you transfer funds to another Heritage account or to an account at another Australian financial institution.

With online redraw at Heritage, you can tap into additional payments, from the convenience of your computer or mobile device.

To activate online redraw, complete and return the Online Redraw Authority Form that applies for your account.

Home Loan or Personal Loan: Personal Online Redraw Authority Form

Business Loan: Business Banking Online Redraw Authority Form

We'll process your request within 2 business days for you to start using online redraw in Heritage Online or our Mobile Banking App. Transfer limits will be subject to your existing Heritage Online limits.

If you don’t have access to online banking or wish to redraw funds outside of your existing transfer limits, you can complete and return an Application to Redraw Payments in Advance form. This will incur a $20 processing and handling fee if you are not a home advantage package customer.

For further information get in touch with us on 13 14 22 or talk to your local branch.

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