What is Repayment Reduction?
A Repayment Reduction is where you can use money in your Available Redraw to reduce your Maximum Loan Amount, thereby reducing your monthly minimum repayment.
Why would I want to do that?
Your minimum monthly repayment amount is a combination of interest charged on your Balance Remaining and the Principal your pay over the life of the loan.
Reducing your Maximum Loan Amount will reduce your minimum monthly repayment amount as you will reduce the interest accrued over the month.
About our Repayment Reduction
Reduce your Maximum Loan Amount almost immediately.
Keep your existing interest rate (including your annual discounts)
No Unloan fees
How can I apply for Repayment Reduction?
1. Log in to your Unloan Account
2. Go into your Home Loan account page and select the cog icon
3. Scroll down to "Reduce your repayments" and click to get started
4. Complete the application
If you are applying with a co-borrower, only one of you should start the application. Once you’ve finished, the other co-borrower will receive a notification in their Unloan account to review and sign the Notice of Variation.
What do I need to be aware of?
A Repayment Reduction permanently reduces the amount of Available Redraw. Please obtain independent financial advice to understand if this is right for you. If you require additional funds at a later time, you must apply for a Top Up for which your eligibility to take on additional lending will be reviewed.
You must:
Have an Available Redraw balance of ≥$10000
Not be in arrears or be in a hardship arrangement with us
Please note, Repayment Reduction is not a substitute for discharge. If you wish to pay your loan in full, please contact us separately.
After your Maximum Loan Amount is reduced, interest accrued as at the day of the Loan Variation will be applied to your Loan Balance. You will be required to pay interest on this loan balance on the next repayment date.
Repayment Reduction is available between 9AM and 9PM Australian Eastern Time.
Where can I share my feedback?
You can share your feedback through via our Live Chat or email us at [email protected]. If you have any other questions, please chat to us at any time or email us at [email protected].