Home loan repayment options to help manage your cashflow
If you’re a home owner or property investor, there are several ways you could ease your cashflow. One way is to adjust your repayment frequency or amount. Find out more.
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 132 558. Having a conversation with us won’t affect your credit report or your ability to borrow in the future.
Want to free up some extra cash? Consider reducing your home loan repayments to the minimum amount. You may be eligible if:
- You have a variable rate home loan.
Your repayment type is principal and interest.
You are currently paying more than the minimum amount on your home loan.
What you need to know:
- The duration of the loan (based on your home loan contract) remains the same to ensure your loan is repaid within the original term.
- You can change your repayment option anytime via the Westpac App, or call 132 032.
You can change the repayment amount and frequency in a few simple steps using Online Banking or the Westpac App.
In the Westpac App
- Search Direct Debit in the Smart Search bar
- Tap the loan you want to adjust or manage
- Select the account to be debited
- Follow prompts to choose frequency and amount
- Choose Direct Debit starting day. Based on your next contractual date and the starting day chosen, select starting date from options
- Review and submit.
In Online Banking
- Select your home loan
- Select More > Manage direct debit
- Select the loan you want to adjust or manage
- Select the account to be debited
- Follow prompts to choose frequency and amount
- Choose Direct Debit starting day. Based on your next contractual date and the starting day chosen, select a starting date from options
- Review and submit.
If the debit account is a joint account, any other account holders will need to approve this request within the next 5 days.
Once submitted and approved by all account holders, your request will be processed within 2 business days. You can find the details of this request in your message inbox. We’ll notify you once the request has been completed.
Any questions, call us on 132 558.
Need some breathing space? If you’ve already made extra payments towards your loan, you could arrange to miss a payment or make a reduced payment.
How it works
- You’ll continue to accrue interest while your repayments are missed or reduced.
- The duration’s determined by the ‘available’ extra funds in your loan account.
- No need for approval, but we’ll ensure the feature is set up on your account.
You could qualify if:
- You’re ahead on your scheduled repayments
- Your loan’s Fully Drawn.
For more info or to arrange a ‘holiday’, get in touch through the Westpac App or call 132 558
Going through a key lifestyle event, like parental leave? You could apply to lower your minimum repayments by up to 50% for up to 12 months.
How it works
Conditions, eligibility and suitability criteria apply.
- At the end of the term, your minimum repayments will increase to ensure you repay your loan within its original term.
- Interest is capitalised. This means whatever interest you would've normally paid during the Reduced Repayment term will continue to accrue and be added to the balance. So your outstanding balance will increase, and you'll pay more interest over the life of the loan.
- You can use this feature up to twice during the life of the loan, and we’ll need to assess your eligibility.
For more info or to apply, get in touch 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. Use our repayment calculator to see how Interest Only repayments could work.
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
Conditions, credit criteria, fees and charges apply. Residential lending is not available for Non-Australian Resident borrowers.
This information is general in nature and has been prepared without taking your personal objectives, circumstances and needs into account. You should consider the appropriateness of the information to your own circumstances and, if necessary, seek appropriate professional advice.
Taxation considerations contained in this article (on this page) are general in nature. They do not take into account your personal circumstances and they should not be interpreted or used as tax advice or a tax guide. You should seek independent tax advice to determine the appropriate tax consequences relevant to your circumstances before making any decision based on this information.
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.