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Home loan - "balance" vs "available balance"

Posted by Carolest Carolest
Message 1 of 2 1,081 Views

I have a complete variable home loan. Can someone please explain the difference between balance and available balance? What is the purpose of the two balances?

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Re: Home loan - "balance" vs "available balance"

Posted by LyndsC LyndsC
Message 2 of 2 1,079 Views

Hi @Carolest, the balance will show you the amount currently owing on the loan, however the available balance shows any funds that have been transferred into the loan account. If you make repayments before the monthly due date, or more frequently that once a month they will show in the available balance until the due date each month. The available balance also shows any excess funds available for re-draw, so if you tend to pay more than the minimum amount each month the funds will show in the available balance, and offset the amount of interest you pay, as these funds are taken into account each day when interest is calculated.

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