Overview

Redraw allows users to borrow additional funds against their existing loan by leveraging available security value, without the need to create a brand-new loan. This feature is available for both Line of Credit and Fixed Term Loan products.

• The redraw amount must not push the loan above the maximum LVR.
• A redraw is effectively treated as a new borrowing event with its own origination fee.
• A new agreement is generated upon approval.
• The loan term does not reset — the original end date remains unchanged.

Redraw Process

1. The user initiates a redraw request from the loan dashboard;
2. The user can choose to redraw to the max LVR available on the loan;
3. The user needs to fill in his financial and personal situation;
4. User can preview the new loan agreement before the submission;
5. The request is submitted for approval
6. The LVR is updated immediately and the redraw amount is returned as a pending amount

Upon approval:

• The AUD will be settled to the customer's bank account after reckoning

  

Loan Status Update

• Redraw does not create a new loan record — it updates the existing one.
• The outstanding balance increases.
• LVR is recalculated to reflect the new borrowing immediately after the application is submitted
• The loan term and expiry remain unchanged.
• A redraw fee is added and included in the total origination fees, just on the new loan amount, not the entire loan balance.

Redraw Decision

Once the Redraw has been approved or declined, you will receive the decision via Redraw Application Status Update webhook.

If the redraw application has been declined, the customer's loan balance and LVR will be rolled back to the status before the redraw happened.