It means you don’t have to make any home loan repayments during the deferral period.
It’s important to note that, by deferring your repayments, the interest is capitalised. This means that the interest you’d have normally paid during the deferral 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.
For example, if you borrowed $300,000 with 20 years remaining at 3.5% and you deferred your repayments for six months, 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.
After the deferral period, to help keep your repayments as similar as possible to what you were previously paying, we’ll extend your loan term as required. Note that if your home loan deferral period is extended, your loan term won’t be extended further – this may result in a higher monthly repayment amount than what was paid before the deferral.
Taking advantage of a repayment deferral won’t impact your credit rating or appear on your credit file during the deferral period.
At the end of your home loan deferral, you will need to start making repayments again.
We've extended your loan term by the months required to make sure your repayments remain similar to the ones you were previously paying. Note that if you were given an extension on your deferral period, your loan term wasn't extended further – which means you may have a higher monthly repayment amount than what you were paying before the deferral.
If a repayment is due on a day that is not a business day, it will be due on the next business day. If a repayment is due on the 29th, 30th or 31st of a month that doesn’t have that day, the repayment will be due on the first business day of the following month.
To help you make your next repayment, here’s some useful information on how to find your new repayment amount and what you need to know about your direct debits and/or manual payments:
Repayment amount for principal and interest repayments
Your new repayment amount will be calculated at the end of your deferral period and will be based on your outstanding home loan limit.
The new repayment amount will be included in your Account Position Statement, which will be sent to you by post before the end of your deferral period.
Repayment amount for interest only loans
Your new repayment amount will be available in your transaction listing in the Bankwest App or Bankwest Online Banking on your repayment due date.
To view your new repayment amount, you’ll need to log in to the Bankwest App or online banking on the repayment due date and:
- select your home loan
- in your transaction listing, the repayment amount will be the interest amount debited from your account.
If you need help finding out your repayment amount, please call us on 1300 385 837 or select ‘Ask us’ in the Bankwest App to start a secure conversation.
Direct debit repayments
You direct debits will recommence automatically based on your new minimum monthly repayment amount. Please make sure there are enough funds in your nominated account.
If you have a weekly or fortnightly direct debit set up, you might need to make extra repayments outside of your repayment schedule to make sure your full minimum monthly repayment is paid by the due date.
For any manual repayments, please make sure the repayment is made by the repayment due date. You can do this by transferring money into your home loan account or contacting us to set up a direct debit.
If, at the end of your deferral period, you continue to have difficulty making your repayments, you can talk through your options with us.