ABSA FLEXI RESERVE FACILITY
The Flexi Reserve Facility allows Absa home loan customers to access pre-paid funds paid into their home loan without the need to apply for additional credit. This facility is uniquely positioned to address the growing demand for convenient and cost-effective financial tools that help customers navigate life’s unexpected moments and opportunities.
Why the Flexi Reserve
Facility Works:
The Flexi Reserve Facility is simple and convenient. Customers can
deposit extra funds into their home loan account, and this will enable them to
create a reserve that they can access at any time.
Here's
how it works
Depositing
extra funds:
By depositing more than the
required monthly home loan repayment. The extra funds will be
stored in the customer’s Flexi Reserve Facility linked to their home loan.
Financial
flexibility and interest savings:
Customers can choose to use
the available extra funds to reduce their monthly repayments by saving on
interest or paying off their home loan sooner by requesting the extra funds to
be capitalised to the outstanding balance on their home loan.
Convenience:
Funds can be accessed via
multiple channels including the Absa Banking App, Online Banking, ATMs, or at
any Absa branch.
Why
the Flexi Reserve Facility?
Cost-effective
borrowing:
Access funds at competitive
interest rates, which are typically lower than those of personal loans,
offering a more efficient borrowing solution.
Interest
savings:
By depositing extra funds,
customers can reduce their monthly repayments, leading to potential savings on
interest payments.
Fees:
There are no additional
fees for electronic transfers from the home loan to an Absa transactional account.
Important to note: Standard service fees and cash deposit
fees apply
How
to access funds from the Flexi Reserve facility
Linking
accounts:
The customer’s home loan
account will be linked to their Absa’s transactional account, if they have one (current or
savings), enabling seamless transfers. If a customer holds a
non-Absa transactional account, they will need to access the funds through their
non-Absa account by making a request at an Absa branch.
Important
information to note:
The bank will calculate the
amount available for withdrawal, which may be less than the total prepaid amount. This calculation ensures
that the recalculated home loan repayment after withdrawal does not exceed the
original contracted mortgage loan repayment amount. It also ensures that when a
customer withdraws the available amount, they can afford the recalculated monthly
repayment over the remaining term of their home loan.
The prepaid amounts will continue to amortise (reduce) over the remaining loan term, ensuring that monthly repayments remain affordable should a customer withdraw available funds. The Flexi Reserve facility reduces over time, and customers may not be able to access the full pre-paid amount in future.
If a customer misses any monthly repayments, the facility will be suspended until the home loan and linked MultiPlan accounts are brought up to date. The facility will then be reinstated after a period of two months.