What is NedRevolve?

The NedRevolve facility is available to home loan clients, enabling them to access any surplus funds that accumulate when the client pays more than the minimum instalment or a lump sum into their home loan account. However, the NedRevolve facility does not have the functionality of a savings account.

The NedRevolve facility enables clients to:

• Transfer funds into their home loan whenever they have extra funds available; and
• Withdraw surplus funds available in the client’s home loan account whenever the client needs it, or in case of an emergency or unforeseen expenses.

The amount available to withdraw from a NedRevolve facility is calculated based on the difference between the current outstanding balance and the amortisation of the original loan amount over the term of the contract (referred to as the limit – the limit is the present value of the instalment, prevailing interest rate, and months to go). Accordingly, the available amount is not based on the pure calculation of funds paid in over and above the required instalments.

Source: Nedbank