All Topics / Help Needed! / Redraw after fixed period expires?

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  • Profile photo of tuggerwaughtuggerwaugh
    Participant
    @tuggerwaugh
    Join Date: 2007
    Post Count: 192

    G’day all,
    Just a quick question in regards to my PPOR home loan that I currently have fixed. Originally the loan was approved for $380… we have now paid off $30,000 of this loan and am looking for some extra cash for the next few months. As I cannot redraw any funds under the fixed interest rate option currently, when that fixed rate period ends will the money we have paid off then become available to redraw? Any help appreciated. Cheers
    Chris

    Profile photo of KevKev
    Participant
    @kvnsngh
    Join Date: 2014
    Post Count: 3

    G’day Chris,

    This would be lender specific. Some Banks/Lenders will still allow redraws even if your loan is fixed. Because technically the surplus is not what you were contracted to pay. These are extra funds.

    So, best to check with your Lender. I am pretty sure if they a helping enough, there will be a way.

    Regards,

    Kev

    Profile photo of Tom@SadhanaConstructions[email protected]
    Participant
    @spartantom
    Join Date: 2015
    Post Count: 18

    An alternative is to refinance and access the cash that way.

    If you’re partial to fixed interest rates they have come down a lot over the last 3 years so you could lock in a really competitive rate and access the cash you’re after. Or if you want to throw your dice with the variable rate then you could still refinance to access the cash.

    This all depends upon the value of your property having remained steady or hopefully increased over the last 3 years.

    Cheers,
    Tom

    [email protected] | Sadhana Constructions
    http:\\www.sadhanaconstructions.com.au
    Email Me | Phone Me

    Perth builders of developments and bespoke homes

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069

    Hiya Chris

    Kev hit the nail on the head – it’s lender specific. Best bet is to call your bank/broker and ask them the question.

    Either way – when it reverts to variable, you’ll be able to access those funds one way or another.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
    Email Me | Phone Me

    Mortgage Broker assisting clients Australia wide Email: [email protected]

Viewing 4 posts - 1 through 4 (of 4 total)

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