How to choose the best savings account for you
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.
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:
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?
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. 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 Heritage Online 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.
Frequently asked questions and answers to explain loan redraw