Repeat Borrowers (Rewrites)

Our Repeat Borrower feature – otherwise known as Rewrites to Investors and Top Up to Borrowers – allows Borrowers who have demonstrated a reliable track record of on-time repayments to top up their existing Harmoney loan, increasing their total loan amount. 

What is a Repeat Borrower (Rewrite)?

How it works 1

Repeat Borrowing is a feature offered to certain Borrowers, who have demonstrated a reliable track record of on-time repayments, to Top Up their existing Harmoney loan.

Harmoney only allows each Borrower to have one active loan through the Marketplace at any one time. Because of this, a Borrower's existing loan is closed off, and rewritten.

Paying out existing loans to enable Borrowers to take out larger amounts is standard practice for fixed term personal loans. 

Which grades get rewritten the most?

Rewrite grades

Looking at which Harmoney Risk Grades are most commonly rewritten, A through to D are evenly split. However at the higher risk grades, E and F, we don't see as many customers being offered the chance to Repeat Borrow, and thus they make up a much lower proportion of the rewriten loans.

FAQs Repeat Borrowers (Rewrites)

What is the impact of repeat borrowers on my net returns?

We forecast the performance impact of repeat borrowers to be ~0.4 - 0.5% p.a. less on an annualised basis.

What qualifies a Borrower to rewrite their loan?

A borrower must have good credit with a consistent loan payment history, at least three months of payments on time and in full and have capacity within their credit limit.  All Repeat Borrowers must go through the entire responsible lending application process, including credit checks and serviceability.

Why doesn't Harmoney issue a new loan for the "Top Up" amount instead of prepaying the old loan?

We believe that asking Borrowers to manage multiple loans with different terms on different dates could potentially increase delinquencies/defaults and increase operating costs.

Why doesn't Harmoney just add the "Top Up" amount onto the existing loan?

Each loan contract is an agreement between the Borrower and Lenders. It would be administratively difficult for us to contact every Lender on a loan to ask whether they accepted the new contract conditions including term, as all of our Lenders have different investment criteria.

More questions?

Please feel free to drop us a line and we'll answer any other questions you have: