Hi there, I am having trouble finding information about home loan repayment holidays, can you please explain to me how this works, i.e. how often can you take a repayment holiday, are there any administrative costs to set up a repayment holiday? Thanks.
Here are the basics - repayment holidays for 1-3 month periods may be available on certain loan products, but that there is a qualifying criteria that must be met, and you can only take one repayment holiday every 2 years.
Although you will be taking a break making repayments, the interest on the loan will continue to accrue, and be charged to your outstanding loan amount. There are no administrative costs involved in setting one up, but keep in mind that the new outstanding loan balance cannot exceed the original documented loan amount, nor can the remaining term of the loan be extended. So, this may limit the length of time a home loan repayment holiday can be taken for and/or may increase the remaining regular repayment amount to ensure the loan is repaid within the documented term.
It’s worth noting that repayment holidays are not available for customers suffering financial hardship such as the loss of a job - if this is the case then we ask customers to contact us to see what other options are available.
Availability of repayment holidays will be determined based on your own person circumstances, so if it’s something you’re interested in let us know and we’ll take it from there.