Important information.

Important information.
The below information applies to your redraw if you have the following home loan products:
  • Standard Home Loan
  • Ultimate Offset Account
  • Interest Only Investment Loan
  • Maxis – Rate Saver Home Loan
  • Maxis – Money Manager Offset Account
  • Maxis – Interest Only Investment Loan

Please note: these products are no longer offered to our customers.

Don’t have one of these products, or not sure how find your type of home loan?

Want to change back your redraw limit?

Want to change back your redraw limit?

Dedicated redraw change back hotline 1300 308 357

To request to change back your redraw, discuss the impacts of redrawing on your repayments or other options, please call ME on our dedicated hotline on 1300 308 357 Monday to Friday 8am-8pm, or Saturday 9am-5pm (AEST/AEDT)

What is redraw?

What is redraw?

Redraw is a variable home loan product feature that gives you access to additional payments you have made on your loan above the scheduled minimum. Additional payments can be in the form of lump sum deposits or by making higher recurring repayments than the minimum. These additional payments can help to reduce the balance of your home loan and the interest you pay on it.

While the redraw feature is designed for infrequent use, it can be handy for those times you face an unexpected bill, or you need access to money for a big ticket item, like a getaway, or adding that much needed second bathroom. The amount of money that you have available in redraw will go down as your loan progresses towards its end date.

Where is redraw available?

Where is redraw available?

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.

What are the benefits of being in advance and having redraw available?

Paying your loan off sooner.

You can make additional lump sum repayments or regularly pay more than your minimum required repayment. This will build up the balance you have available to withdraw later via the redraw, and may reduce the time it takes to pay off your home loan.

Interest Savings.

Any money available for you to redraw reduces the balance of your home loan, so you’ll be paying less interest on your home loan.

Repayment holiday.

Additional money available to redraw may also give you the opportunity to take a break from your scheduled repayments. This feature is available only on ME Basic and Flexible Home Loan products. You need to speak with us in order to set a repayment holiday on your home loan.

So how does redraw work?

So how does redraw work?

The rate at which your redraw reduces and the amount available is dependent on a number of factors and can vary for every customer. Here are a couple of scenarios to help explain how redraw works: