What Tamara is saying, and I saw this on one of those morning shows.... is even tho putting your money onto your mortgage and having it available as 'redraw' sounds good in theory....you have to weigh up where you are going to make more of a savings.

eg.... if I have $3000 available in redraw, then it may save me $150 a month in interest off my mortgage.....BUT.... if I have that same $3000 sitting in an interest earning savings account, then at the end of the month I might have earnt $200 in interest....so I am $50 a month better off by saving the money into a savings account than having it sit in a redraw account.

Banks never do ANYTHING to help the customers....they are encouraging redraw facilities for this reason alone...it is saving the banks from having to pay YOU interest....!!

I think it was Koshy who was talking about this whole redraw/line of credit thing...and apparently the higher your mortgage, the less money you save having your money in a redraw account.

Kind of a thread hijack....sorry :shock: