Redraw Facility
Access extra repayments you've made. Cheaper than offset, worse tax treatment.
What is Redraw Facility?
Redraw lets you withdraw extra repayments you've made above the minimum required. Different from offset — redraw is a feature of the loan itself, not a separate linked account. Extra payments reduce your principal; redraw pulls them back out as a loan advance.
Why it matters for you
Redraw has an important tax implication for investors: withdrawing redraw for personal use can taint the loan's deductibility. Offset is cleaner for mixed-purpose borrowers. For straight owner-occupiers, redraw works well and is often cheaper (no offset account fee).