A loan with a redraw facility allows access to advance or extra payments made to the loan account. You can make extra payments to the loan, helping to reduce interest costs, whilst still having access to the funds in the future. A fee is often charged when the funds are redrawn and some lenders have minimum redraw limits.
Tip: Always try and apply for an extra $5000 or more which you can pay straight back into the loan after settlement. These funds will then be available for redraw.