Requesting a permanent limit reduction

A permanent limit reduction reduces the limit of a variable rate home loan account, which will also reduce the limit of the home loan facility. A permanent limit reduction may also reduce the minimum monthly repayment for your customer.

To complete a permanent limit reduction, your customer can use the available balance in their redraw to reduce the home loan limit. In the example below, if the customer wished to reduce their home loan facility limit by $100,000, they could:

• transfer funds (e.g. $100,000) into their home loan account with $200,000 limit, to be available balance in their redraw, then
• use the available balance in their redraw (e.g. $100,000) to reduce the first home loan account limit from $200,000 to $100,000, which would also
• reduce the home loan facility limit from $1,000,000 to $900,000.

Note: this variation is only available on home loans with a BSB starting 182.

Your customer needs to have funds in their home loan account’s redraw. If their funds are in another account (e.g. their offset account), ensure they transfer the funds they wish to use into their redraw.

Then, your customer will need to contact our team via live chat to request and accept the changes on their Macquarie Online or Mobile Banking app.

To assist them with requesting a permanent limit reduction:

• share our Personal Help Centre article on how to request a permanent limit reduction
• ensure they have transferred funds into their home loan account, ready to reduce the limit permanently when chatting with our team
• ensure they understand that by reducing their home loan account and facility limit, they’ll no longer have access to that additional lending or redraw, and
• ensure their home loan account has a BSB starting with 182.

It’s important your customer's aware a reduction to their home loan account limit is permanent and any redraw funds used will no longer be accessible.

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.

Also note:

• a home loan account can only be reduced to a minimum limit of $20,000, and
• a permanent limit reduction on a fixed rate home loan account may incur a break cost.