Redraw on Fixed Loans? Discover Your Options (2026)

You're not alone if you're wondering about the flexibility of your fixed home loan. Many Australians are grappling with the question of whether they can access extra repayments made on their fixed loans. Understanding redraw facilities and their applicability to fixed home loans is crucial, especially in an ever-evolving financial landscape.

Understanding Fixed Home Loans and Redraw Facilities

Fixed home loans provide stability by locking in your interest rate for a set period, often between one and five years. This means your repayments won't change, allowing for predictable budgeting. However, this stability can come with limitations, particularly when it comes to accessing any extra repayments made during the fixed period.

A redraw facility allows borrowers to access additional repayments made on their mortgage. While it's a common feature in variable home loans, its availability in fixed loans is less straightforward. Some lenders may offer limited redraw facilities on fixed loans, while others might restrict access entirely until the end of the fixed period.

Current Rates, Requirements, and Options

As of 2026, the Australian home loan market is witnessing interest rates ranging from 6.49% to 8.25% for fixed loans, depending on the lender and the loan term. Given the diverse panel of 83+ lenders accessible through Esteb and Co, there are various options to explore. However, it's crucial to understand that not all fixed loans offer the same features.

Eligibility for a redraw facility on a fixed home loan typically depends on several factors:

• The lender's policy regarding redraws on fixed loans.
• Whether you have made extra repayments beyond the scheduled amounts.
• The terms of the fixed loan agreement, which may specify limitations on redraws.

Let's look at a quick comparison:

Lender	Fixed Rate	Redraw Facility
Lender A	6.49%	Available with restrictions
Lender B	7.25%	Not available
Lender C	8.00%	Available

How to Navigate Redraw on a Fixed Home Loan

While accessing redraw on a fixed home loan might seem challenging, there are steps you can take to explore your options:

1. Review Your Loan Contract: Start by reviewing your loan agreement to understand the terms related to redraw facilities.
2. Contact Your Lender: Reach out to your lender or mortgage broker for clarification on their redraw policies. They can provide specific details about any conditions or fees.
3. Evaluate Your Needs: Consider whether accessing your extra repayments is essential or if other financial strategies might better suit your situation.
4. Consider Refinancing: If your current lender doesn't offer a redraw facility, refinancing to a loan that includes this feature may be an option, though it comes with potential costs.

Expert Tips and Considerations

Here are some expert tips to consider when dealing with redraw facilities on fixed home loans:

• Plan Ahead: Before committing to a fixed loan, assess your financial situation and future needs to determine if a redraw facility is essential for you.
• Understand Fees: Some lenders may charge fees for using a redraw facility. Ensure you understand these costs before proceeding.
• Consider Flexibility: If financial flexibility is a priority, you might explore variable loans or split loan options that offer a combination of fixed and variable rates.
• Consult Experts: Mortgage brokers like those at Esteb and Co can help you navigate the complexities of home loans, offering tailored advice and access to a wide range of lenders.

Frequently Asked Questions

1. Can I access my extra repayments during the fixed term?
It depends on your lender's policy. Some may allow limited access, while others restrict redraws until the end of the fixed term.

2. Are there fees associated with redrawing on a fixed loan?
Yes, some lenders might charge fees for using a redraw facility. It's essential to confirm any potential charges with your lender.

3. What if my lender doesn't offer a redraw facility on my fixed loan?
Consider refinancing to a loan that includes a redraw facility, or evaluate other financial strategies that might meet your needs.

4. How can a mortgage broker assist me?
A mortgage broker can provide expert guidance, help you understand your options, and connect you with lenders that match your requirements.

5. Is it worth refinancing solely for a redraw facility?
Refinancing can involve costs, so weigh the benefits against the potential expenses. A broker can help you assess if it's a viable option.

6. Can I split my loan to have both fixed and variable rates?
Yes, many lenders offer split loan options, allowing you to enjoy the stability of a fixed rate and the flexibility of a variable rate.

7. Are there alternatives to redraw facilities?
Consider offset accounts or line of credit options, which might offer the flexibility you need without the constraints of a redraw facility.