Redraw
A redraw facility is a feature attached to a home loan or personal loan which allows you access to extra repayments you've made on your loan over and above your scheduled repayments. This can be helpful if you need to withdraw some of the extra money you've paid into your loan. Making extra repayments can help reduce the amount of interest you pay by reducing your outstanding balance.
Yes. Your redraw balance is calculated on the extra repayments you’ve made over and above your scheduled repayments then reduces this by your next scheduled repayment amount.
When you redraw funds, the amount withdrawn is added back to your loan balance and interest will be charged on the balance in accordance with our Lending Terms & Conditions.
Go to ‘Payments’ and select ‘Loan redraw'. Choose 'From’ to see a list of all your loans which allow redraw. If no loans are listed, please call us on 13 11 82 or visit your nearest branch for assistance.
All new People First Bank home and personal loans allow a redraw facility as a standard feature.
Redraw is not available on some products that are no longer for sale. If you have an existing fixed rate loan with us and would like to activate your redraw facility, or to check if a redraw facility is available on your loan, please call us on 13 11 82 or visit your nearest branch.
A redraw facility allows you to access extra repayments that you have made over and above your minimum scheduled repayments, subject to the conditions of your loan.
An offset account works differently. It’s a separate transaction account linked to your eligible home loan, and the balance reduces the interest payable on your home loan balance each month.
So, the simplest way to think about it is: redraw is a feature available on your home loan itself, whereas an offset account is a separate transaction account linked to your eligible home loan.
Both can help reduce the amount of interest you pay on your home loan and pay off your home loan sooner but depends on what is available to you on your home loan.
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