We’ll debit your linked bank account for your repayment amount based on your chosen frequency (weekly, fortnightly or monthly), this includes any extra repayments you’ve set up.
Your repayments will land into either your redraw or offset, depending which one you have. It saves you interest calculated on a daily basis. Easy.
On your monthly billing date, your minimum loan repayment amount is debited from either your redraw or offset to permanently pay down your principal. Any extra repayments you’ve chosen to make will remain in your redraw or offset. In other words, the extra repayments do not go towards paying down your principal, unless you request a ‘limit reduction’.
Direct debit payments are the most common for our customers. It’s set and forget. Read how weekly and fortnightly direct debits help you pay down your loan faster here.