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Home loan repayment options to help manage your household’s cashflow

We understand that unexpected life events can have a huge impact on your household income and we want you to know that, if this ever happens, we’re here to help.

Whether you’re a home owner or property investor, facing financial hardship can arise from different life events such as losing your job or income (including rental income), illness, a relationship breakdown, reduction in your business cash flow or emergency events like natural disasters. If you believe you are facing financial hardship, find out how Westpac Assist can help you.


If you are not facing financial hardship but need help to ease financial pressure to get back on your feet or need some breathing space to free up some cashflow during uncertain times, below are four flexible options which may suit you.


Please remember to consider all these options based on your individual needs and if you think any could work for you, get in touch through the Westpac App or call us on 132 558.

 

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


You could be eligible for this if: 

  • You have a variable rate home loan.

  • Your repayment type is principal and interest.

  • You’re ahead on your scheduled repayments. 


Things to bear in mind when requesting a home loan repayment pause: 

  • You will continue to accrue interest while your repayments are paused.

  • You should check whether the additional funds available in your variable rate home loan account will cover the payments you wish to miss or reduce as a result of pausing the repayments on your home loan.

  • A formal approval process does not apply to activate this option.

  • Loans are to be Fully Drawn and have more than the scheduled repayments as available funds.

  • The length of your pause is determined by the amount of extra funds you have in your loan.

  • After your paused repayment period, your minimum repayment amount increases to adjust for the paused repayments. This ensures your loan is still repaid within your original term.


For any questions, and to apply, please get in touch through the Westpac App or call us on 132 558


View defer mortgage repayment calculator

Want to ease the financial pressure temporarily? A home loan repayment reduction allows  you to reduce your repayments by 50% for up to 6 months.


You could be eligible for this 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.


Things to bear in mind when requesting to reduce home loan repayments: 

  • A formal approval process is required to assess your eligibility for this option. 

  • Interest is capitalised. This means that the interest you would have normally paid during the period you have reduced your repayments for will continue to accrue and is added to your outstanding home loan balance, to be paid after the reduced repayment period. As a result, your outstanding balance will increase, and you will pay more interest over the life of the loan.

  • After your reduced repayment period, your minimum repayment amount increases to adjust for the reduced repayments. This ensures your loan’s still repaid within your original term. 


For any questions, and to apply, please get in touch through the Westpac App or call us on 132 558

Are you currently making Principal and Interest repayments? You may be eligible to switch your loan to Interest Only and only pay interest during the approved IO term.


You could be eligible for this 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. 


Things to bear in mind when requesting to pay Interest Only:  

  • A formal approval process is required to assess your eligibility for this option. 

  • Interest rates for loans with Interest Only repayments are higher. It’s important to be aware that the interest rate will be higher if you pay interest only instead of principal and interest.

  • Your repayments will increase at the end of the interest only period. This is because the amount you’ve borrowed will need to be paid back in a shorter timeframe. The repayments will be higher than if you’d opted to continue pay principal and interest. Also, the longer the interest only period, the higher the jump in repayments will be.

  • You will pay more interest over the life of the loan. This is because there won’t be any reduction in the amount you’ve borrowed during the Interest Only period.

  • When switching to Interest Only repayment, you have the option of either remaining on a variable rate or switch into a fixed IO term.

 

For any questions, and to apply, please get in touch through the Westpac App or call us on 132 558.


Full service property management

Full service property management agents, propper, are offering Westpac customers 6 months free^ property management - simply join propper between 25 May and 25 September 2020, in selected metro and regional areas.

^ For full terms and conditions on propper’s offer. Click here to apply

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.