Redraw on Your Money 3 Loan? Find Out Fast (2026)

Are you considering accessing funds from your Money 3 loan through a redraw facility? It's a common query for many Australians who are seeking to manage their finances more effectively. Whether you're looking to make a large purchase, consolidate debt, or simply improve your cash flow, understanding how redraw facilities work can be a game-changer.

Understanding Redraw Facilities

A redraw facility is a feature available on certain types of loans that allows borrowers to access extra payments they have made towards their mortgage. If you have been making additional payments on your Money 3 loan, you may have the option to redraw these funds when needed. This facility can be a convenient way to access cash without having to take out a new loan.

Typically, redraw facilities are linked to variable rate loans, although some fixed rate loans may also offer this feature. It's important to note that while redraw facilities provide flexibility, they often come with conditions and fees. Understanding these elements is crucial to making informed financial decisions.

Current Market Rates and Requirements

As of 2026, interest rates for loans with redraw facilities in Australia range from 6.49% to 12%, depending on the lender and the borrower's credit profile. It's essential to compare different lenders to find the most competitive rate that suits your financial situation.

Eligibility for a redraw facility on a Money 3 loan typically requires that you have made extra payments beyond the minimum required. Lenders will also consider your creditworthiness, the current balance of your loan, and any applicable redraw fees.

Steps to Accessing Your Redraw Facility

1. Check Your Loan Agreement: Review your Money 3 loan documents to confirm if a redraw facility is available. Pay attention to any terms or fees associated with accessing these funds.
2. Calculate Available Funds: Determine how much you have paid in excess of your required payments. This will give you an idea of the funds available for redraw.
3. Contact Your Lender: Reach out to your lender to initiate the redraw process. This can often be done via online banking, over the phone, or in person at a branch.
4. Submit Any Required Documentation: Some lenders may require additional documentation or verification before processing your redraw request.
5. Confirm Transaction Details: Ensure you understand any fees or impact on your loan term before finalising the redraw.

Tips and Considerations

• Understand the Costs: Be aware of any fees associated with redrawing funds, as these can vary significantly between lenders.
• Evaluate Your Needs: Consider whether redrawing funds is the best option for your financial goals. It may affect your loan term or increase your interest costs over time.
• Consult with Professionals: Engaging with a mortgage broker, such as Esteb and Co, can provide valuable insights and access to a wide range of lenders, ensuring you get the best deal possible.
• Plan for the Future: Use redrawn funds wisely and consider setting up a financial plan to manage repayments effectively.

Frequently Asked Questions

1. Can I redraw on a fixed rate loan? Not all fixed rate loans offer redraw facilities. It's best to check with your lender or review your loan agreement.
2. Is there a limit to how much I can redraw? Yes, you can only redraw the extra payments you have made above the minimum required repayments.
3. How long does it take to access redraw funds? The timeframe can vary, but most lenders process redraw requests within a few business days.
4. Are there tax implications for redraws? Generally, redraws are not taxable. However, it's advisable to consult a tax professional for specific advice related to your circumstances.
5. Can redraws be used for any purpose? Yes, unlike some other loan features, redraws typically do not have restrictions on their use.
6. Will redrawing affect my loan term? Redrawing funds can extend your loan term or increase your repayment amounts, depending on your agreement with the lender.
7. What if I have multiple loans? If you have multiple loans, it's crucial to understand the terms of each. Not all loans may offer redraw facilities.