The redraw feature is available on Variable Rate Home Loans, however, if you have a Fixed Rate Home Loan this feature will only be available once your fixed rate term expires and switches to the variable rate.
If you already had available money in redraw prior to starting the fixed rate period, the redraw amount will need to be reduced completely – you can do this by moving it all to a separate account (in which case your fixed rate loan balance will be higher) or you can reduce your home loan limit by the amount of the redraw prior to commencing your fixed rate. You can make up to $30,000 in extra payments during the fixed-rate period (going above that amount will attract a prepayment fee), however you won’t be able to access the redraw amount until the end of that fixed rate period.
There are other ways to reduce interest payable on your home loan – having an offset account can be a good way to reduce the interest charged on your home loan while also giving you access to your money whenever you need it. With an offset facility linked to one of ME’s transaction accounts you can make deposits or withdrawals, as you would with a regular transaction account, meaning an offset account is often more suitable if you plan on using - and needing access to - your funds more regularly.