Frequently Asked Questions
What is a loan redraw facility?
If you’ve paid off more than the minimum required amount on your eligible home or personal loan (also known as ‘Payments in Advance’), you can make a redraw request to withdraw the extra money you’ve paid.
Heritage offers you the convenience of redrawing payments you’ve made in advance on your eligible home or personal loan when you need them. You can use the funds withdrawn for any purpose.
What happens to my loan when I redraw ‘Payments in Advance’?
Interest is calculated on your loan on a daily basis by applying the daily percentage rate to the Outstanding Amount of Credit as at the end of each day. Because redraw increases the amount of money you own (Oustanding Amount of Credit), this affects your interest charges. The term of your loan will not change, as a result of completing a redraw transaction.
What do I need to consider before redrawing ‘Payments in Advance’?
You’ll need to consider what the amount of your next ‘repayment’ will be and ensure there is sufficient funds available to cover this repayment amount. Should you fail to make the next repayment by the due date, then your loan will be in arrears and Heritage may apply additional fees and charges, as well as make contact with you for being in default under your Credit Contract.
If you need to confirm what your next repayment amount is before completing a Redraw Transaction, you can obtain this information by contacting us on 13 14 22 or via Heritage Online.
For more information on redraw refer to our Help and Guidance Article Redraw from your Home Loan or Personal Loan.
