How can I reduce the limit on my home loan?

Before you reduce your home loan limit​

You might want to reduce your home loan limit to pay it off faster or to decrease your overall debt, which can help with future lending applications.

Most people reduce the limit on their home loan when they come into some extra money, like if they:

  • sell an investment property
  • receive an inheritance
  • get a cash windfall, or
  • sell other assets like shares or managed funds.

Important things to keep in mind:

  • The amount you’d like to reduce your limit by needs to be available in your home loan account – it can’t be reduced by more than the loan has in surplus funds
  • Once reduced, you won’t be able to access the funds anymore. If you need to access them again, we’ll need to do a new lending assessment​
  • If you reduce the limit on a fixed rate loan, fees might apply, but we’ll get in touch with you to discuss this after you make the request
  • If the loan needs two (or more) to sign, all borrowers need to complete a request with the same details.

Reducing your home loan limit

To reduce the limit on your home loan, you’ll need to send us a request.

In online banking:

  1. Go to ‘Message centre’​
  2. Choose ‘Bankmail’​
  3. Select ‘Reduce Home Loan Limit’​
  4. Fill out the template and click ‘Send’.

You can also fill out a Home Loan Limit Reduction Request (PDF).

The process usually takes a minimum of 5 business days from when we receive your request.

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Need help getting the most out of your home loan?

Message us in the app or call us – we’re available 24/7.