A redraw facility best suits someone who wants the simplicity of operating one home loan without an additional offset account. It is most effective if you are able to make additional payments to your home loan.

Whether its $10 extra a week or a $3000 tax refund, parking additional money in your mortgage reduces the interest you pay. Because your scheduled repayments remain the same you end up paying your loan off faster.

Using the redraw facility on your home loan gives you the security of knowing that even though you’ve made extra repayments on your loan, the money is still accessible in an emergency.

It’s also a great facility to have if you are holding a sum of money for a period of time – say, the time between selling a car and buying another.

The minimum redraw from your advance funds is $500 and can be withdrawn up to the account’s scheduled balance online using iBank or by visiting any BCU branch.

You need to know:

• If you are in an advance position on the loan and the regular payment is missed, this will be deducted automatically from the “surplus” in the loan, reducing the amount available for redraw. In this way, advance funds act as a buffer against hard times.
• Redraw transactions are always at BCU’s discretion.
  
• The redraw facility is only available on certain Principle and Interest variable Home, Investment and Commercial loans.

Products issued by Bananacoast Community Credit Union Ltd ABN 50 087 649 750 AFL 241077.
Available to approved applicants only. Normal lending criteria, terms and conditions apply. Interest rates, fees and charges are payable and are subject to change without notice. Terms and Conditions for Savings and Terms Deposits Accounts are available upon request from any branch or by logging onto www.bcu.com.au. Fees and Charges may apply. Minimum redraw $500. No redraw or offset during fixed-rate period. Redraw not available on interest-only loans during the interest-only period.