Support for your home loan repayment deferral

If you have a home loan repayment deferral due to the impacts of COVID-19, find out more about what it means for you and some of the things you could do.

This information includes what you should know about restarting your repayments, or if you need additional support at the end of your deferral period.

Choose a help topic

What does the repayment deferral mean for me?

Restarting my repayments

I’ll need additional support at the end of my deferral period

General FAQs

I have a home loan repayment deferral – what does that mean for me?

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.

Restarting my repayments

FAQs

1

What happens when my repayments restart at the end of my 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.

Manual repayments​
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.

2

Can I start paying my loan again during the deferral period?

You can continue to make repayments – however, the interest will continue to capitalise during the deferral period. Any extra repayments will appear as surplus in your loan account and will reduce the balance you pay interest on over the deferral period.​

If you are in a position to restart making repayments, withdrawing your repayment deferral may be an option to consider. You can submit a request to withdraw your home loan repayment deferral in Bankwest Online Banking or the Bankwest App. For more information about how to do this, please refer to the FAQ below - ‘Can I withdraw my deferral and restart my repayments?'

3

Can I withdraw my deferral and restart my repayments?

Yes, you can. If life is getting back on track during your deferral period and you’re able to start making your 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 a 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 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 1300 385 837

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 deferral period. 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.

Restarting your repayments won’t reduce your extended loan term. If you want to reduce your loan term, call us on 1300 385 837 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.

4

Can I switch to making interest only repayments?

If you have a variable rate home loan and were previously making repayments on both the principal (loan amount) and interest, you could either withdraw your deferral and switch to an interest only loan or, if you'd like to use the full deferral period, call us after your deferral to switch your loan over.

This option 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 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*
  • If you're still in your deferral period, you'll need to withdraw your deferral and switch to interest only. In order to use the full deferral period, please call us after your deferral ends to switch your loan over
  • 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 switching to an interest only loan for 12 months, please contact us on 1300 385 837.  If you’re a business customer, call us on 13 7000.

You can also call us to discuss alternative options.

*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.

I’ll need additional support at the end of my deferral period – what do I do?

We’ll continue to monitor how COVID-19 is affecting our customers’ financial wellbeing and will work to support you through any financial difficulty.

If you're still in your deferral period and you think you'll need additional support when the deferral period ends:

It’s a good idea to get in touch with us sooner rather than later – we’re here to help.

​You can submit a request in Bankwest Online Banking or the Bankwest App to talk to someone about additional support. We’ll then be in contact as soon as we can to discuss support options at the end of your deferral period and what they mean for your individual circumstances.

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 1300 385 837.

If you need immediate assistance, our Customer Assist team is here to help.

If you’ve reached the end of your deferral period and you need additional support:

Please contact Bankwest to discuss the support options available and what they mean for your individual circumstances. We’re here to help you during this time.

​And if you find yourself in a position to make any extra repayments towards your home loan – however small – during your deferral period, it can help. Even small extra repayments can help to reduce the balance you pay interest on over the six month deferral and will appear as surplus in your loan account.

General FAQs

Answers at your fingertips

1

My repayment deferral is approved but interest is appearing on my account. Why?

Our SMS is your confirmation that your 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.

2

Will I need to make repayments during the deferral period?

No, you aren't required to make any repayments during the deferral period. You can choose to continue making repayments – however, the interest will continue to capitalise during the deferral period. Any extra repayments will appear as surplus in your loan account and will reduce the balance you pay interest on over the deferral period.​

If you are in a position to restart making repayments, withdrawing your repayment deferral may be an option to consider. You can submit a request to withdraw your home loan repayment deferral in Bankwest Online Banking or the Bankwest App. For more information on how to do this, please refer to our FAQ on this page - 'Can I withdraw my deferral and restart my repayments?’.

3

What happens if interest rates change during my deferral period?

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

4

Can I extend my home loan deferral period?

We have a range of measures to support you if you're experiencing financial hardship, including the option to extend your home loan deferral by up to four months if you meet the eligibility criteria.​

You don't need to contact us about a deferral extension, as we'll reach out to you before the end of your current deferral period (please ensure we have your most up to date contact details).

Please be aware that a deferral extension might not be in your best interests, given there is a cost associated as interest accrues and the loan principal is not being paid down.​

If you can recommence making repayments, you'll be required to do so at the end of your current deferral period.​

We will work with you if you need additional support beyond your existing deferral period to identify the best option available for your individual circumstances

How can we help?

You can message us in the Bankwest App or online banking, or you can call us – were here 24/7.