What should I consider before I apply?
The repayment pause is designed to help you in the short term, which means there are some things you will need to know:
- The paused repayments will be capitalised on the loan principal balance, this simply means they are paused for a short term but your repayments will increase once the pause ends so that you can make up for the pause.
- Your loan will still need to be repaid within its original term.
- Your repayment pause changes cannot mean you exceed your original maximum approved limit.
- The standard interest rate for the loan will continue to apply and any changes to the interest rate during the parental leave will be automatically applied as per your contract.
Is there eligibility criteria I need to meet?
If you’d like to take advantage of a repayment pause, you’ll need to meet the eligibility criteria, and we will need to assess your application to pause your repayments. Eligibility criteria:
- Submit a formal written request and application with updated assets and liabilities statement demonstrating payment stress due to parental leave, signed by all borrowers. Please note that supporting documentation may be required.
- Your home loan is for your primary place of residence and your repayments are principal and interest (not available for investment loans).
- Your Loan to Valuation Ratio (LVR) does not exceed 90%.
- There has been acceptable conduct on your loan in the past 12 months.
- Your loan is not currently in default.
The usual repayment pause period is 3 months (90 days). This can be reassessed. The period must not exceed 12 months (365 days).
Life moments – we’re here to help
Parental leave is just one of the reasons that a repayment pause may be of assistance to you. We realise life can be unpredictable at times so it’s nice to know you have a home loan that you can seek to adapt to your life in times of financial challenge. There are a number of other life events that a repayment pause might be suitable for such as a redundancy, illness or even a marriage or relationship breakdown. Speak to us today or
find out more about whether you might qualify for a home loan repayment pause.
