Overview

Rollover is a loan management action that enables users to extend the term of an existing loan. It is only applicable to Line of Credit loans. A user can either:

• Rollover into a new Line of Credit, or
• Rollover into a Fixed Term Loan (feature coming soon).

This allows users to maintain uninterrupted access to funds without fully repaying and reapplying.

Business Case

Rollover allows the customer to extend their Line of Credit loan by effectively opening a new loan with a fresh term. A new origination fee applies, and a new interest rate may apply if rates have changed since the original loan.

The customer is not required to repay the full loan balance to roll over.

Particularly for rolling over to Line of Credit, they must cover any outstanding interest and origination/redraw fees. If sufficient repayments have already been made during the current term, no additional payment is required — the repayment required amount will display as $0. This is not required for rolling over to Fixed term loan.

Rollover is permitted even if the customer’s current LVR exceeds the maximum borrowing threshold (e.g. 52%). No top-up or partial repayment is needed in this case. However, if the loan is in default due to LVR breach, the rollover is permit with separate rules apply.

Supported Rollover Types

Timing & Eligibility

• Rollover is only allowed during the final 30 days of a Line of Credit loan term.

Prerequisites

To initiate a Rollover, the following conditions must be met:

General

• The loan must be active (not closed).
• The loan must be within the last 30 days of its term.

Required Repayment for Rollover to Line of Credit

• User must pay:

  • Origination Fee (initial + any redraw fees)
  • Accrued Interest for the current term

• This amount is calculated as:

Repayment Required = (Origination Fee + Accrued Interest) - Total Repayments Made during the loan term

• If this value is below 0, the user can proceed without additional payment.
• If > 0, the user must make repayment before completing the rollover.

📘

The user can initiate a rollover immediately after making a repayment, even if the transaction has not been fully settled. This allows for a smoother UI experience.

Rollover to Line of Credit

1. User receives Rollover Notification within final 30 days.
2. User opens loan details and selects "Rollover".
3. App displays:

• New term details
• Repayment Required amount (if applicable)

4. If applicable, user is required to make the repayment before he can proceed further to the application.
5. User fills the personal and finnacial declaration.
6. User can preview the loan agreement before submission.
7. The application is subject to approval. If the application is approved, the new loan will be in effective immediately. If declined, the user has to close the loan before the loan expired.

Rollover to Fixed Term

Users will be able to rollover to a Fixed Term Loan (3, 4, or 5-year terms) as well. No repayment will be required — the entire balance will be transferred as principal for the new loan.

The steps are the same as the Line of Credit Loan

Flows