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).
Last updated: April 2026