If you want flexibility to pay off your mortgage sooner - and therefore pay less interest overall - then the FlexiLoan could be the way to go. It also gives you freedom to withdraw money up to your loan limit.

After making loan repayments and paying living expenses each month, most people with home loans generally put any spare cash into a savings account or investment.

But wouldn't it be great if you could put that spare cash to better use paying off your loan - yet still have the option of withdrawing money up to your loan limit to pay for holidays or other items that may come up?

The BankDirect FlexiLoan lets you do just that. 

A loan and transaction account rolled into one
With a FlexiLoan you pay your entire salary into your FlexiLoan account. The loan interest is charged each month, and to cover your living expenses you simply send Virtual Cheques, or use a BankDirect cash or Visa card to withdraw money from your FlexiLoan account as if it was a day-to-day transaction account. You can even set up bill payments, automatic payments or transfers.

You get maximum financial flexibility
In other words, a FlexiLoan is like a large overdraft with a pre-agreed lending limit and a competitive debit interest rate. You can deposit money into, or withdraw from it at any time up to the agreed limit.

Because you've got an instant line of credit, you can withdraw money up to your agreed limit at any time during the term of your loan. That's a handy facility to have if you've reduced your loan balance, and then want to borrow it back again to finance an overseas trip, say, or a new car.

By the same token, if you receive a large sum of money, you can reduce your borrowings without penalty.

Pay off your loan at a rate that suits you
As you will probably want to be loan free eventually, you can also choose to pay off your FlexiLoan as quickly or as slowly as your financial circumstances allow.

If you continually pay more than the minimum required to meet your new reduced limit each month, after time, your loan balance could become much lower than your credit limit.

When that happens, you still have the option to withdraw money up to your available credit limit at any time.

So you could get the best of both worlds - satisfaction that you're reducing the outstanding amount on your loan, plus the ability to access money within your available limit at any time.

Minimise the interest you pay on your loan
Perhaps the best advantage of a FlexiLoan is the interest you could potentially save over the life of your loan, depending on how you operate your FlexiLoan.

Having your salary and any other income direct credited to your FlexiLoan reduces the outstanding balance (albeit temporarily). As interest is calculated daily on your outstanding balance, this means you could enjoy immediate cost savings.

A BankDirect FlexiLoan is only available when you use residential property as loan security.

Advantages

• Gives you the ability to repay your loan early
• Gives you the potential to pay less interest over the term of the loan
• Makes it easy to repay lump sums without penalty
• Redraw to your credit limit at any time
• One account for your loan and day-to-day transactions

Special features

• Pay bills directly from FlexiLoan account
• Access your loan account using your BankDirect cash card, Visa card or cheque book

Conditions:

• Minimum loan amount: $10,000
• Terms: on demand facility
• Variable interest rate only
• BankDirect FlexiLoans are subject to specific lending criteria and conditions including minimum income levels and periodic reviews.
• If for some reason the terms of the FlexiLoan are not being met we may require you to make regular instalments to reduce your FlexiLoan limit.
• BankDirect may also require an updated valuation at your cost.

Fees
Click here to see the fees for the FlexiLoan account.

Non Standard Charges (including non-ASB ATM charges) apply.

A copy of ASB's Disclosure Statement and BankDirect's Terms and Conditions for the products and services referred to on this website are available from BankDirect, part of ASB Bank Limited. All fees and interest rates are subject to change.