Should I withdraw redraw before refinancing?
Do not withdraw redraw solely because you are refinancing. First decide what the money is for, whether you genuinely need access to it and whether moving it changes the tax character of the debt.
What changes the answer
Withdrawing redraw increases the loan balance that must be refinanced. That can change LVR, repayments and future borrowing capacity.
If the funds are for a new purpose, keep the purpose and transaction trail clear.
What to check before acting
Ask the new lender to model the refinance both with and without the additional balance before deciding.
- 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.