In the event of a rate increase, the new interest rate will apply from the rate effective date.
If you make Principal and Interest repayments, your repayment amount won’t increase straight away. If your repayment needs to increase, we’ll always give you at least 30 days’ notice prior to any increase to your loan repayments.
If you make Interest Only payments, the interest payable will increase from the rate effective date. We’ll update your direct debit for you, so you’ll need to ensure you have enough money in your direct debit account to cover the increased amount.
If you are on a fixed rate, there will be no change to your repayments until your fixed term concludes.
How will I find out if my repayment amount is increasing?
- If you make Principal and Interest repayments, we will send you a notice email at least 30 days prior to an increase to your repayments. If we don’t have your email address, we will send you a letter instead.
- This notice will include the new amount we plan to increase your repayments to. This amount may change between when we provide you notice and make the change effective, however it will never be higher than the maximum amount we disclosed.
- We’ll also write to you after your notice period to confirm your new repayment amount and effective date.
What happens after my required repayment amount has increased?
- If you have a direct debit, we’ll update this for you so you can meet your repayment obligations. You’ll need to ensure you have sufficient funds in your direct debit account.
- If you pay manually, you’ll need to increase the repayment amount yourself.
My repayment amount did not increase, why?
- If you have a sufficient redraw balance to support your existing repayment amount or are already paying above your required amount, you may not be required to increase your scheduled repayment.
However, an increase may be applied at a later date, with at least 30 days’ notice, if and when the loan circumstances change.
- If you received a notice from us to advise of an intended repayment increase but did not receive a confirmation after your notice period, circumstances on your account may have changed between when we notified you of a repayment change and when the change was due to take effect. In this case, we may have chosen not to apply the repayment change.
If in the future we identify that a repayment increase is required, we will write to you again to advise of the new details.
How do interest rate changes impact my available redraw balance?
- When interest rates rise, your available redraw balance will gradually reduce over the remaining life of your loan to ensure your loan is repaid within the loan term. If your redraw balance is not sufficient to support your current repayment amount, we'll contact you to advise of any increase required to your current repayment amount.
- If you have any questions regarding your repayment amount or redraw balance, call 13 1998 or speak to your Relationship Manager.