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How to make principal payment on home loan via internet banking

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Posted by 59564938 59564938
Message 1 of 2 223 Views

Hi,

I transferred a small lump sum from my transaction account to home loan account via internet banking thinking this would be treated as the loan principal repayment. I used to make principal payments this way when I was with ANZ before.

However, the internet banking screen shows that my loan balance stays the same and the small lump sum I transferred is appearing as "available balance". Is this treated as advance mortgage interest payment? If so, this is not what I intended. If I transfer this amount out of loan account and back into the transaction account, will it be treated as redraw and redraw fee would be charged?

Looking forward to your advice. Thanks. J. 

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Re: How to make principal payment on home loan via internet banking

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Posted by LyndsC LyndsC
Message 2 of 2 219 Views

Thanks for the question @59564938! For security reasons we can't access or discuss any personal information via the forum, so we'd need to speak with you over the phone to assist with this, if you  can call our Contact Centre on 13 17 19 between 8am - 8pm your local time, or chat with us through your online banking so we can look into this for you.

As a general rule, additional payments made to your home loan above and beyond the minimum monthly repayment (if the loans is principal and interest) or interest amount (if the loan is interest only) will stay in the available balance of the home loan. Any funds in this balance are used to reduce the amount of interest that's charged to your loan.

If you'd like this balance used to reduce the principal of your loan we will require your request in writing.

This letter must contain the following;
1: Full names of all account related parties
2: Your loan account number
3: Amount you would like the loan limit to be reduced to
4: All account holder signatures (this letter must be printed and signed by hand as we cannot accept electronic signatures)
5: A day time contact number for all parties

You're welcome to scan and return your signed written instructions through your online banking via BankMail.

I hope this helps!

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