Your client can arrange for the limit on their home loan account to be permanently reduced if they have funds available in their redraw or offset account. We’ll need to speak to your client directly so that they can verbally accept the changes.
It’s important to note that a reduction to their home loan limit is permanent and a principal increase application with supporting documents will be required for any future increase/s to the limit, which will be subject to a credit assessment and approval, and any applicable fees.
Note: An account can only be reduced to a minimum limit of $20,000.
What happens to your client’s monthly repayments
- If your client’s home loan BSB starts with 182, your repayment amount is based on the home loan account limit and a limit reduction will reduce the minimum monthly repayment amount.
- If your client’s home loan BSB starts with 183, your repayment amount is based on the home loan account balance. A limit reduction won’t reduce the minimum monthly repayment amount.
To support your client through the process, view our Personal Help Centre for information on how to request a permanent limit reduction.