Equity Release › What is the difference between equity release and redraw?

What is the difference between equity release and redraw?

Redraw lets you pull back extra repayments you have already made on your loan. Equity release is a new approval that increases your loan to access the growth in your property value. Redraw needs no new application; equity release does.

Written by Ross McFarlane, Licensed Mortgage Broker (Credit Representative 526725). About the author

Why this matters

People mix these up often. Redraw is simply taking back money you already paid in, with no new loan. Equity release is fresh borrowing, assessed like a new loan, that taps the increase in your home value. Redraw is quicker but limited to your extra repayments; equity release can access much more.

The key points

Redraw returns extra repayments you already made.
Equity release is new borrowing against value growth.
Redraw needs no new application.
Equity release is assessed like a new loan.

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Last reviewed: June 2026

General information only. This page provides general information about home loans and is not financial or credit advice, a quote, or a guarantee, and your personal circumstances have not been considered. Lending policies, interest rates, fees and eligibility vary by lender and change over time. Always confirm your own situation with a licensed mortgage broker or lender before acting. Ross McFarlane (Credit Representative 526725) is an authorised Credit Representative of Australian Associated Advisers Pty Ltd t/a Keylend, Australian Credit Licence 392169.