Maximising Your Home Loan: The Strategic Use of a Redraw Facility
In the world of home loans, a redraw facility is a valuable feature that can significantly enhance your financial flexibility. This tool is more than just a way to handle unexpected expenses or investments. It's about creating a financial cushion that fits your lifestyle. Whether you need funds for emergencies, opportunities or just want extra security, a redraw facility gives you control over your finances in a flexible way that standard loans only sometimes provide. At Central West Credit Union, we offer home loans with a free redraw facility, allowing you to make the most of this beneficial feature.
Understanding the Redraw Facility
A redraw facility is a feature in some home loans that lets you access the extra payments you've made over and above your required monthly payments. This tool is vital for managing finances, allowing faster loan payoff while providing access to these funds if needed.
Why Use a Redraw Facility?
Financial Flexibility: Redraw facilities are perfect for unexpected expenses or opportunities, such as emergency repairs or investment opportunities, offering a buffer in times of need.
Interest Savings: Extra payments reduce your loan principal, cutting the total interest. The redraw facility lets you enjoy these savings and access the necessary funds.
Convenience and Control: It offers a convenient way to manage cash flow. You can make extra payments when feasible and access them when required, giving you control over your financial situation.
Emergency Fund: It acts like an emergency fund, providing peace of mind with the knowledge that extra funds are available if your financial situation changes.
Wisely Using a Redraw Facility
While a redraw facility offers significant advantages, it's essential to use it judiciously. It's ideal for significant or emergency expenses rather than day-to-day spending. Remember, redrawing funds can increase your loan term if not managed properly.
CWCU’s Home Loan Options
CWCU offers various home loans, like the Premium Mortgage Smart Home Loan and the Mortgage Smart Home Loan, with a free redraw facility. These products cater to different needs, including first-time homebuyers and individuals seeking refinancing, emphasising personalised service and competitive rates.
Whether you are a current customer seeking flexibility in your existing loan or a potential customer yearning for a more responsive loan provider, CWCU is here to make things happen smoothly. Our commitment is to provide both loans and pathways to financial freedom and peace of mind. If you are considering taking advantage of the equity in your home via a redraw facility, we encourage you to contact our friendly team. The redraw facility is a powerful feature, offering savings and flexibility. However, it requires careful consideration to align with your financial goals. For more detailed information on CWCU’s home loan options and the benefits of a redraw facility, visit our home loans page.