Can I Use Mortgage Redraw to Buy a Car? The Real Cost Comparison

General information only — not financial advice. This content is intended as educational guidance. Consult a qualified financial adviser, mortgage broker, or legal professional before making financial decisions. See our full disclaimer.

General information only - not financial advice. Consult a qualified professional before making financial decisions.

Frequently Asked Questions

Is it cheaper to use mortgage redraw or a car loan for a $25,000 car?

Redraw wins if repaid quickly. Active redraw repaid in 3 years: ~$2,400 total interest. A 5-year car loan at 8%: ~$5,600 total interest. But passive redraw added to a 20-year mortgage: ~$18,600 - far more expensive.

Can I use an investment property loan's redraw to buy a car?

Technically yes - but you should not. It destroys the tax deductibility of that loan portion. Use an offset account, personal loan, or car finance instead.

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