What happens to redraw when I refinance?
Redraw is attached to the existing loan. When that loan is refinanced and paid out, the old redraw arrangement ends. Decide what you want to do with any available redraw before settlement and confirm the tax and structural consequences before moving money.
What changes the answer
A refinance pays out the old loan and replaces it with a new facility. Redraw availability on the old account does not automatically migrate as a separate cash balance.
If you intend to keep access to the money, ask the current lender and new lender how settlement will treat it before signing.
What to check before acting
If the property may become an investment, moving money between loan and deposit accounts can have tax consequences. Get tax advice rather than relying on a refinance shortcut.
- Use your actual balance, price, term and fees.
- Keep the comparison on the same time horizon.
- Check any tax-sensitive or contract-specific point against the current source document.
Use the enquiry form for an initial broker review. No lender application is made just by enquiring.
Review my home-loan structureSources and verification
- Moneysmart — Switching home loans
- Moneysmart — Mortgage offset accounts
- APRA — Macroprudential policy settings
General information only. It is not personal financial, tax or legal advice. Finance approval, pricing and structure are subject to lender assessment and your circumstances.