Support for your six-month home loan repayment deferral

You can continue to make repayments - however, the interest deferral is locked in for six months. Any extra repayments will appear as surplus in your loan account and will reduce the balance you pay interest on over the six months.

​Alternatively, if life is getting back on track and you’re able to start making your home loan repayments again, you might want to consider withdrawing your deferral and restarting your repayments. Restarting your repayments before the end of your deferral period will help reduce the amount of interest you’ll pay over the life of your loan. For more information about how to do this – and how it could save you money in the long term - please refer to the FAQ below - ‘Can I withdraw my deferral and restart my repayments?'

Yes, you can. If life is getting back on track and you’re able to start making your home loan repayments again, withdrawing your deferral can save you money in the long term.​

Restarting your repayments before the end of your deferral period will help reduce the amount of interest you’ll pay over the life of your loan. As a general example, if someone had 20 years remaining on a 30 year loan at an interest rate of 3.50%, here’s an estimate of the additional interest they’d pay over the life of the loan if they remained on the six-month deferral, as opposed to withdrawing their deferral after three months.*​

Original loan balance: $400,000​
Three-month deferral: The additional interest would be $9,426​
Six-month deferral: The additional interest would be $11,563.​

You can submit a request to withdraw your six-month home loan repayment deferral in Bankwest Online Banking or the Bankwest App.

In Bankwest Online Banking:​
Go to ‘Self service’ > ‘COVID-19 support’​
Log in to online banking

In the Bankwest App:​
Go to ‘Products & offers’ > ‘COVID-19 support’​
More about the Bankwest App​

You can also call us on 13 17 19

Things to keep in mind:​
If you withdraw your deferral, your repayments might be less than what you were previously paying, as your loan term was extended on the basis that you were deferring for the full six months.​

Restarting your repayments won’t reduce your extended loan term. If you want to reduce your loan term, call us on 13 17 19 instead. Reducing the loan term can reduce the interest you’ll pay over the life of the loan but will result in a higher monthly repayment than if you remained on your extended loan term.

​If you’ve previously requested direct debits to repay your home loan, these will be reinstated based on your new minimum monthly repayment amount. If your previously requested direct debits were weekly or fortnightly, you might need to make extra repayments outside of your weekly or fortnightly payment schedule to make sure your full minimum monthly repayment is paid before the next interest raising date.​

If you’ve set up repayments yourself, you’ll need to reinstate these.

​If your home loan is in arrears, you'll need to pay the arrears amount before the deferral period ends. This will avoid any adverse impact to your credit file and any collections activity.

​If you’re unsure or need help, message us in the Bankwest App or Bankwest Online Banking.

​*The above results should be used as an indication only and are based on a number of assumptions. The actual amount of increased interest payable will depend on your particular circumstances.

If you have a variable rate home loan and were previously making repayments on both the principal (loan amount) and interest, an option you might like to consider is withdrawing your deferral and switching your home loan over to an interest only loan for 12 months. This could give you a little breathing space - with an interest only loan, you’ll only need to make monthly repayments of the interest amount. These smaller repayments, compared to what you were previously paying, could help free up your cash flow.​

Keep in mind, this option may not be for everyone.

Things to keep in mind:

• Eligibility criteria applies*
• You’ll need to withdraw your deferral to switch to interest only
• You’ll only start to pay down the loan amount after the 12-month interest only period. Your repayments will increase in order to pay down the loan amount by the end of the loan term
• You’ll end up paying more interest over the life of the loan since you won’t be paying down any of the loan amount during the interest only period
• The interest only rate may be higher than what you are currently on
• The interest only period is for 12 months
• If you find you need support making your repayments during or after the interest only period, our Customer Assist team are here to help.

To discuss the option of withdrawing your deferral and switching to an interest only loan for 12 months, please contact us on 1300 385 837.

To discuss alternative options, please call us on 13 17 19.

*Eligibility criteria:

• Home loan is not currently on a fixed rate
• Home loan is not currently in arrears
• There is a minimum of 12 months remaining on the contracted loan term at the expiry of the 12-month interest only term
• You must have had your home loan for at least six months.

Our SMS is your confirmation that your six-month deferral has started.

​Each time your monthly interest is calculated, we’ll increase your loan limit to ensure no repayment is required each month. This may take 24 hours, so don’t worry when the debit interest appears in your transaction listing. You’re not required to repay this during your deferral period.

Our SMS is your confirmation that your six month deferral has started.

You’ll need to pay any interest charged before your deferral was approved, so please check your statements or online banking and - of course - if you're experiencing difficulty, please contact us.

No, you aren’t required to make any repayments during the six-month deferral period. You can choose to continue making repayments - however, the interest deferral is locked in for six months. Any extra repayments will appear as surplus in your loan account and will reduce the balance you pay interest on over the six months.

Interest on a variable rate loan will continue to be charged at the applicable daily interest rate, which can change from time to time.

Your home loan repayments will start again after the six-month deferral period, and your repayments will be adjusted accordingly.​

We’ll extend your loan term by the months required to make sure repayments will remain similar to ones you’re currently paying.

​If, at the end of your deferral period, you continue to have difficulty making your repayments, you can talk through your options with us.​