Redraw from your Home Loan or Personal Loan

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.

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 Heritage’s online redraw option you can tap into additional payments, from the convenience of your computer through online banking (internet or mobile).

To access online redraw, complete and return the Online Redraw Authority and within 2 business days start using it via internet banking or Heritage’s Mobile Banking App. Transfer amounts are subject to your existing Heritage Online limits however you can access those funds free of charge whenever you need them.

If you don’t have access to online banking or wish to redraw funds outside of your existing Heritage Online limits, you can complete and return an Application to Redraw Payments in Advance form. Access this form from our website or simply contact us to request a copy. This will incur a $20 processing and handling fee if you are not a home advantage package customer.

For further information please contact your local branch or phone our contact centre on 13 14 22.