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Home loan repayment options to help manage your cashflow


Unexpected events like job loss or illness can have a huge impact on your income. When that happens, we’re here to help.

If you’re a home owner or property investor, there are several ways you could ease your cashflow.


If you're experiencing financial hardship, find out how Westpac Assist can help.


Remember to consider all the options based on your individual needs and if there's an option that works for you, call us on the Westpac App or on 132 258.

 

Need some breathing space? If you’ve already made extra payments towards your loan, a home loan repayment pause could be a great solution.

 

You could be eligible if:

  • You have a variable rate home loan.

  • Your repayment type is principal and interest.

  • You’re ahead on your scheduled repayments. 



What you need to know:

  • You’ll continue to accrue interest while your repayments are paused
  • Loans must be Fully Drawn and have more than the scheduled repayments as available funds
  • The duration of the pause is determined by the amount of additional funds available in your variable home loan account
  • Once you resume repayments, your minimum repayment amount will increase to adjust for the paused repayments. This ensures your loan is paid within the original term
  •  No formal approval process is required

 

For more information or to apply, contact us through the Westpac App or call 132 558.

Want a short-term solution? A home loan repayment reduction lets you reduce your repayments by 50% for up to 6 months

 

You could be eligible if:

  • You have a variable rate home loan.

  • Your repayment type is principal and interest.

  • You’ve had your loan for more than 12 months.

  • Your loan isn’t subject to Lenders Mortgage Insurance.

  • You’re able to pay at least 50% of the minimum repayment amount during your reduced repayment period.

  • Your projected limit doesn’t exceed the maximum approved limit. 

  • You haven’t missed more than two repayments over the last 12 months.


What you need to know:

  • Interest is capitalised. This means whatever interest you would've normally paid during the reduced payment period will continue to accrue and be added to the balance. As a result, your outstanding balance will increase and you'll pay more interest over the life of the loan.
  • Once you resume repayments, your minimum repayment amount will increase to adjust for the paused repayments. This ensures your loan is paid within the original term.
  • A formal approval process is required to assess your eligibility.

 

For more information or to apply, contact us through the Westpac App or call 132 558

Making Principal and Interest repayments? You might be able to switch to Interest Only, and pay only interest during the approved Interest Only term.

 

You could be eligible if:

  • You have a variable rate home loan.

  • Your repayment type is Principal and Interest.

  • You’ve had your loan for more than 12 months.

  • You haven’t exceeded the maximum Interest Only term allowable for your product. 


What you need to know:

  • Interest rates for loans with Interest Only repayments are higher. This means the interest rate will be higher than if you were paying the principal and interest.
  • Your repayment amount will increase at the end of the Interest Only period. This ensures your loan is paid within the original term. The longer the Interest Only period, the higher your repayments.
  • You'll pay more interest over the life of the loan. This is because the principal amount borrowed isn’t being reduced.
  • A formal approval process is required to assess your eligibility.

 

For more information or to apply, contact us through the Westpac App or call 132 558.

Things you should know

Credit criteria, fees and charges apply. Terms and Conditions available on request.


This information is general in nature and has been prepared without taking your objectives, needs and overall financial situation into account. For this reason, you should consider the appropriateness of the information to your own circumstances and, if necessary, seek appropriate professional advice.


Reduced loan repayments: It is important to understand that at the end of the reduced repayment period, the repayment amount will increase to adjust for the reduced repayments. This ensures that the loan is still repaid within its original term. Read the disclosure documents for your selected product or service before deciding if this option is right for you.