NedRevolve FAQs

Your instalment only changes if something on your account changes. Here's what can cause a recalculation:

If no transaction or rate change takes place, your instalment remains unchanged.

Expert tip:

• Recalculations always aim to ensure your home loan is paid off on time. That means even small changes in your balance (e.g. a R5,000 withdrawal) can prompt an increase in your instalment.

• Instalment changes are automated to protect the integrity of your amortisation (loan repayment) schedule.

This often happens because of timing.

Nedbank recalculates your instalment on the 14th of each month. If you make an additional payment after the most recent recalculation (e.g. you paid an additional amount on the 20th, but the recalculation happened on the 14th), the system calculated your instalment using the higher outstanding balance as at the 14th, before your payment was received.

As a result, your instalment may temporarily increase, even though you’ve paid extra. But don’t worry, you’re not being penalised. Your payment still goes toward reducing your outstanding balance and will lower your interest over time. The benefit simply reflects at the next recalculation cycle.

Additional key notes to consider: 

• Additional payments do not reduce the loan term by default. They only do so if you formally request a restructure. Otherwise, the term remains unchanged, and the additional amount helps reduce interest over time.

• For interest rate changes, the recalculation is immediate on the date of the change, but the new instalment only becomes effective on the 1st of the following month, impacting that month's debit order.

• NedRevolve withdrawals impact the outstanding capital, so instalments increase to maintain the amortisation (loan repayment schedule) over the remaining term.

Yes. If your Homeowner’s Cover (HOC) insurance premium increases, or if there’s a change to your monthly service fee, your instalment will increase to accommodate the higher amount being debited to your bond account.

When your bond registers, interest starts building immediately from the next day, even before your first repayment is due. If you choose to align your first repayment to your salary date (e.g., the 25th of the next month), this interest is capitalised to your home loan before any payment is made.

This may result in a “technical arrears” flag being recorded on your account, meaning the system reflects unpaid interest temporarily before your first instalment goes off.

This does not mean your account is in arrears, and:

• It does not appear on any platform visible to clients; you would only become aware of it if it is explained to you by Nedbank staff. 

• It may cause slightly more interest to be charged.

• It has no impact on your credit score or bureau profile

Tip: To avoid compounding interest, consider paying your first instalment as close to the 1st of the month following your bond registration.

NedRevolve gives you the flexibility to withdraw any amount you've paid over and above the minimum monthly instalments. 

However, it’s important to note:

• Withdrawing funds increases your outstanding home loan balance, which will trigger a recalculation of your instalment.

• Your monthly instalment may increase slightly to ensure your home loan is still paid off within the original term. 

Example: How a NedRevolve Withdrawal Impacts Your Instalment

Let’s say your current home loan looks like this:

• Loan balance: R800 000

• Interest rate: 11.75% 

• Remaining term: 180 months (15 years)

• Current instalment: R9 473 per month

• Available prepaid funds: R20 000 via NedRevolve

You decide to withdraw R10 000 from your NedRevolve facility.

Here’s what happens:

The system recalculates your instalment just enough to ensure your bond still finishes in 15 years, even though your balance has increased.

We recommend clients selects a debit order (DO) date that matches their salary date, usually between the 25th and the last day of the month, for the following reasons:

• It increases the likelihood that your instalment is paid on time, which helps maintain a healthy credit record. 

• Missing a home loan payment can negatively affect your credit score and result in penalties or fees, which usually outweigh any small interest savings from paying earlier.

However, if cash flow is not a concern, choosing a DO date closer to the 1st of the month can help you save on interest, since: 

• Interest is charged daily on your outstanding balance and added to your loan on the 1st of each month.

• The earlier you reduce your balance; the less interest accrues.

Tip: You don’t have to change your DO date to save interest. You can make additional payments, and still enjoy the benefit of reduced interest without risking a missed instalment.

When you apply for and are granted a further loan, your contracted loan amount increases. As a result, your monthly instalment is recalculated to reflect:

• The total new loan amount (including the further loan),

• Your recalculated interest rate, and

• The remaining term of your home loan. 

Even if you haven’t withdrawn the full further loan amount yet, the system calculates your instalment based on the full registered facility, because:

• The capital is now contractually available to you, and

• The amortisation (loan repayment) schedule is updated to ensure your loan is repaid by the end of the original term.

Your new instalment typically takes effect from the 1st of the month following the date the further loan is registered.