Glossary · Financial Portfolio

What is a redraw facility?

A redraw facility may let you access extra repayments you have already made on a loan. Availability, limits and timing depend on the lender’s terms.

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Plain English. Australian context.

Redraw facility

Know what the term means, what it does not mean and where to go next.

Meaning & context

What it means for your records.

Plain-English information to help you organise your financial picture.

Financial Portfolio editorial team
Australian record-keeping context
Updated 7 October 2026

A simple example

If a statement shows a A$290,000 balance and A$10,000 available to redraw, do not assume there is a separate A$10,000 savings account. Drawing the money may increase the amount owed.

What to keep in your records

Keep the outstanding loan balance distinct from available redraw. Save the statement and access conditions, particularly if you expect to use those funds for a future expense.

A common mix-up

Available redraw is not the same as cash held in an offset account. For a net worth record, avoid adding unused redraw as an extra asset. Read ASIC Moneysmart’s explanation.

Can I always withdraw available redraw immediately?

Not necessarily. Check minimum amounts, fees, access restrictions and processing times with the lender rather than relying on the displayed figure alone.

Where can I check the meaning of redraw facility?

Use the ASIC Moneysmart source alongside the relevant statement or product documents. The examples here explain the term; they do not recommend a financial product.

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