Redraw
More borrowers are moving to include redraw facilities when establishing a loan, and it is easy to see why. The ability to make extra repayments into the mortgage, instead of putting that money into say, a savings account, allows borrowers to reduce the interest on their loan, which in turn helps reduce the term of the loan.
It also provides borrowers with a safety net, as they can access the extra payments if required, down the track. This is particularly suited to first home buyers who are not likely to have extra funds in the early stages of their loan, but may in the future.
You will need to talk to your Mortgageport Consultant for the best redraw deals, as they vary between lenders. It is important to be aware of the costs involved, which may include set up, activation fees and redraw fees. There may also be limits on redraw withdrawal amounts (both maximum and minimum).
