So for the last 8 years I've had a ubank variable rate home loan. Ive deposited extra funds when available.
E.g Initially I deposited $4000 and then a month or two later I wanted to pull this out but there was less than $4000 available for redraw. My ongoing payments had not changed. I did discuss this with ubank and they said this was normal. Something about the loan being less and therefore the amount I could redraw being less but if I've paid extra how does this make sense? With a redraw aren't you meant to be able to access all of it?
Can someone explain to me how this works and why this is so?
If I've missed some details I'm happy to try to provide them.
I have found the balance of the redraw facility changes depending on the time of the month. They appear to take the interest payment out of the redraw balance and pay it back with your weekly, fortnightly or monthly home loan repayments.
I haven’t been able to figure out how they were applying this method before there was a redraw balance, I can only assume that there is a negative balance that is not displayed to the customer.
You should be able to redraw the full amount prior to the interest coming out. You need to check your statement to work out the date and try to withdraw the full amount prior to that.