If you’re a home loan customer who’s in need of support due to COVID-19, you can ask us to defer your home loan repayments for six months without impacting your credit rating.
If you defer your home loan repayments, the interest will be capitalised. This means that the interest you’d have normally paid during the deferred period continues to accrue and is added to your outstanding home loan balance, to be paid after the deferred period. In turn, it means your outstanding balance will increase, and you’ll pay more interest over the life of the loan.
As an example, if you borrowed $300,000 with 20 years remaining at 3.5%, you would pay an additional $8,674 in interest and have your loan extended by 13 months. The actual cost to you will depend on your own individual circumstances.