Flexi Reserve is a facility that allows you to access available funds that you’ve paid into your Home Loan over and above your monthly repayments. Your extra payments will reduce the outstanding balance on your Home Loan Account, saving you interest over the term of the loan.

 

Key features and benefits of Flexi Reserve
 

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Save on interest

Pay less interest because your extra payments reduce the outstanding balance of your Home Loan.

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Get extra cash

Transfer your extra payments to your Transactional Account with Flexi Reserve.

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Pay it off sooner

If you don't withdraw your extra payments from your Flexi Reserve facility, you can pay off your Home Loan sooner.

All about your Absa Flexi Reserve

  • Do I need to apply for a Flexi Reserve to withdraw available funds from my Home Loan account?

    • New Absa Home Loan customers automatically get a Flexi Reserve facility when they register their mortgage bond
    • To apply for a Flexi Reserve facility, you can apply to get one at any time
    • You can still make extra payments into your Home Loan account but will only be able to redraw the available funds once your Flexi Reserve facility is activated
    • Once your Flexi Reserve facility is activated, you will have the ability to re-draw a portion of the amount that you have paid into your home loan account more than your required repayments.

  • How do I access available funds in my Flexi Reserve?

    • You need to transfer available funds from your Flexi Reserve to your linked Absa transactional account using your Absa Banking App or Absa Online.

    Please note if you need to pay a third party from your Flexi Reserve you must transfer the amount to your transactional account first. You can withdraw or transfer a minimum of R1 000 per transaction.

  • Can I withdraw all the funds that are available in my Flexi Reserve?

    • The bank will calculate the amount that you can withdraw from your Flexi Reserve, which may be less than the total amount available.

    Note:

    • The amount you can withdraw is calculated to ensure you will be able to continue to repay  your Home Loan over the remaining term.
    • If any linked MultiPlan Accounts are in arrears, your Flexi Reserve will be suspended until all accounts have been brought up to date after a period of two months.
    • Don’t use your Flexi Reserve to repay your monthly Home Loan repayments. You must ensure that you continue to keep up with the monthly repayments which are due on your Home Loan account.

  • Can I withdraw more than what is available in my Flexi Reserve?

    No. However, you have two options:

    • Apply for a Re-Advance* 
      • You can  revert your current Home Loan balance back to its original loan amount. You can then  apply for the difference between the original loan amount and your current Home Loan account balance. You won’t be charged any bond registration attorney fees.
    • Apply for a Further Advance*
      • You can borrow additional funds based on the increased value on your property. You’ll need to register a further bond as security to cover this increased loan amount. This will incur attorney bond registration costs.

    *Terms and conditions apply, subject to credit assessments and property valuation.

  • I can’t find my Home Loan account on my Absa Online banking profile

    • You haven’t linked your Home Loan account to your Absa Online profile. Please follow the following steps to link to your Home Loan account to your Absa Online profile:

    1. Log in to Absa Online
    2. Click on Full service
    3. Click on the Profile tab
    4. Select Link/Unlink accounts

    You can also call us on 08600 08600 and select option 1.

    • You haven’t been granted Power of Attorney (POA) by all participants on your joint Home Loan account.

  • I have a joint Home Loan account. Who can withdraw from our Flexi Reserve facility?

    • Joint owners to a Home Loan can withdraw as a group from the Flexi Reserve at an Absa branch.
    • Alternatively, joint owners can grant Power of Attorney (POA) to one owner to withdraw from the Flexi Reserve.
    • Once the POA has been accepted, the joint Home Loan account will be linked to the joint owners’ transactional account and any available funds may be transferred from the Flexi Reserve to the transactional account.

  • I can’t transfer available funds from my Flexi Reserve to my linked Absa Transactional Account. What do I do?

    • Call us on 0860 111 007 to activate your Flexi Reserve to enable transfer of available funds from your home loan account to your linked Absa Transactional Account.

  • I don’t want to use my Flexi Reserve, because I want to pay off my home loan sooner. What do I do?

    • You can call the Absa Home Loans Call Centre on 0860 111 007 or email home@absa.co.za and ask for your prepaid funds to be capitalised
    • Once they are capitalised, and you continue to pay additional funds, we will recalculate your new repayment based on the new outstanding balance and the remaining term of your loan
    • Once the repayment has been reduced, you will need to continue to pay more than your new minimum repayment amount to pay off your Home Loan sooner. Please note when you request the bank to capitalise your prepaid funds, you will not have any Flexi Reserve funds available to redraw if the need arises in the future.

  • Can I use my Flexi Reserve as a short term plan to pay my home Loan instalments?

    • No, you will not be able to use your available Flexi Reserve funds during the agreed short-term plan period as well as the 12-month monitoring period after the expiry of the short-term plan.

  • I have settled my Home Loan account before the end of the term. What happens to my Flexi Reserve?

    • Your Home loan account will reflect a zero balance, but with available funds under Flexi Reserve
    • You will have access to available funds in your Flexi Reserve if the available amount is more than R1 000 and you have more than 2 months remaining on the term of your Home Loan
    • If the available funds in your Flexi Reserve are less than R1 000 or you have less than 2 months remaining on the term of your Home Loan, please lodge a request to cancel your mortgage bond and close your Home Loan account.
    • After settling your Home Loan account, you need to:
      • Cancel your mortgage bond (if you pay by debit order, your insurance premiums and monthly service fee will continue to go through if you don’t)
      • Get the title deed to your property. 

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Need more help or advice?

Let one of our property experts call you back.

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Call us on:

0860 111 007

E-mail us at:

General account enquiries: home@absa.co.za

Home loan applications: propertyhub@absa.co.za

Battling to make home loan repayments: bondrs@absa.co.za

Homeowners comprehensive insurance: adminhoc@absa.co.za

Life insurance: polserv@absa.co.za

Visit your nearest branch