Does the Bank of Melbourne propose to redraw money for a home loan?

Managing your home loan effectively involves understanding the features and options available to you. One such feature is the redraw facility, which allows you to access extra repayments you've made on your mortgage. This can be particularly useful in times of need, providing flexibility without extending the original term of your loan.

Redraw Facility Overview

The redraw facility is available on most Bank of Melbourne home loans, including both fixed and variable rate options. It enables you to withdraw additional payments you've made beyond your required repayments, giving you access to extra funds when necessary. This feature is designed to offer flexibility while maintaining the original terms of your loan.

Eligibility for Redraw

To utilize the redraw facility, you must have:

• Made extra repayments on your home loan beyond the minimum required payments.
• Activated the redraw facility via Internet or Phone Banking. If you haven't registered yet, you can do so by completing the Redraw Facility Registration Form and submitting it to the bank.

Redraw Limits

The amount available for redraw depends on your loan type:

• Variable Rate Loans: You can withdraw up to $100,000 per day online or over the phone. In-branch withdrawals are limited to $30,000 per day.
• Fixed Rate Loans: Redraw is available up to the prepayment threshold during your fixed term. For loans fixed after 18 August 2019, the limit is $30,000. For loans fixed before this date, the limit is $10,000 per year and $30,000 total during the fixed term. Exceeding these limits may incur break costs.

How to Redraw Funds

Once your redraw facility is activated, you can access your available funds:

• Online or Phone Banking: Transfer the desired amount from your home loan to your preferred account.
• In-Branch: Complete a Redraw Request Form and submit it at any Bank of Melbourne branch. Please note that processing times may vary, and fees may apply for in-branch requests.

Considerations Before Redrawing

Before accessing your extra repayments, consider the following:

• Interest Implications: Redrawing funds increases your loan balance, which may result in higher interest payments over time.
• Tax Implications: If your loan is for investment purposes, redrawing funds for personal use may affect the tax deductibility of interest. It's advisable to consult with a tax professional.
• Loan Terms: Ensure that redrawing funds aligns with your financial goals and does not extend your loan term unnecessarily.

Contact Information

If you have further questions or need assistance with the redraw process, please contact Bank of Melbourne at 13 22 66.