Making repayments

There are a couple of ways you can make repayments.

1. You can set them up

You can manually set up scheduled payments from your Bankwest account to your home loan account. You can do this in the Bankwest App or online banking. Check out our FAQ – how do I schedule my home loan repayments?

If you have a bank account with another financial institution, check with them to see how you can set up your own repayments to your Bankwest home loan.

2. We can set them up

Give us a call to set up automatic direct debits from any bank account to your home loan account.

You could also fill out a Direct Debit Request Form (PDF) and take it to a branch.

Increasing your home loan repayments

Increasing your repayment amount is a way to help you reduce your home loan interest and pay off your loan faster.

If you’ve set up your repayments yourself, you can increase the amount through the Bankwest App or online banking. If you have direct debits set up with us, give us a call.

You can make unlimited extra repayments on our variable rate home loans. With our fixed rate loans, you can make extra repayments of up to $10,000 a year.

Decreasing your home loan repayments if you've been paying extra on your loan

If you’ve built up a surplus on your loan by making extra repayments, you could choose to reduce your repayments. Keep in mind that you’ll be paying more home loan interest than what you’re currently paying, and that your home loan contract has a minimum monthly repayment amount to ensure you repay your loan by the end of the loan term.

Reducing your repayments to anything down to your minimum monthly repayment amount won’t affect your surplus.

Be careful if you're thinking of reducing your repayments to below your minimum monthly repayment amount

If you decide to decrease your repayments below your minimum monthly repayment amount, you’ll be reducing the surplus you’ve built up on your loan. It's also important to be cautious, as once your surplus is used up, you’ll need to increase your repayments to the minimum monthly repayment amount so you don’t fall behind on your repayments.

You can manually change your scheduled payments in the Bankwest App or online banking. If you have direct debits set up with us, give us a call.

Changing your repayment frequency

If you’re paying principal and interest, you can change your repayment frequency to weekly, fortnightly or monthly to suit your pay cycle. Note that if you have an interest only loan, you can only make monthly repayments.

You can change the frequency in the Bankwest App or online banking if you’ve set up scheduled payments yourself – take a look at our guide to scheduling your repeating home loan repayments. Have direct debits set up with us? Give us a call to change the frequency.

No matter how frequently you make repayments, you'll need to make sure that you're still repaying at least the amount you have to each month to meet the terms of your home loan contract (the minimum monthly repayment amount).

Changing your repayment type to principal and interest or interest only

Switching to principal and interest

If you have an interest only loan (and you’re not currently in the building phase of a construction loan) and you want to switch to principal and interest repayments before the end of your interest only period, get in touch with a Home Lending Specialist. Because principal and interest repayments pay down both the loan amount and the interest, this repayment type can help you pay your loan down faster – see some reasons to pay principal and interest.

Keep in mind though that your minimum monthly repayment will be higher compared with interest only. Fees and charges may also apply, such as break fees on a fixed rate loan and – if you don't have a Complete Home Loan Package – transfer fees.

If you’re reaching the end of your interest only period, we’ll notify you to let you know what your new repayments will be and about any adjustments you might need to make.

Switching to interest only

With an interest only loan, you only make repayments on the interest amount for a set period of time – usually one to five years. These smaller repayments could help free up your cash flow for a bit, or have potential tax and gearing benefits if you’re a property investor.

However, there are things to consider before switching to an interest only loan. These include the fact that you’ll end up paying more interest over the life of the loan, the interest only rate may be higher than what you’re currently on, and your repayments will be higher when the interest only period ends. Fees and charges may also apply, including break costs on a fixed rate loan and – if you don't have a Complete Home Loan Package – transfer fees.

Take a look at some things to consider about an interest only loan. It’s a good idea to get independent financial advice too. 

What happens to your repayments if there's an interest rate change?

If your repayment amount needs to change, we’ll send you a new Account Position Statement to let you know. Refer to that Account Position Statement for more information about what you need to do, and read our FAQ – what happens if there’s an interest rate change?

Loans that need two or more people to authorise payments and changes

If your loan has been set up so two or more people need to authorise changes and repayments, visit your nearest branch or call us to discuss your options.

Need more help?

You can message us in the Bankwest App or online banking, or call us – we're here 24/7.