Repaying your loan

With a good budget, repaying your home loan should be a straightforward process. But we understand that you might want to make some changes to your loan over its lifetime, or even pay it off early. Here you’ll find some useful tips on repaying your loan and information on how you could pay it off earlier than anticipated.

Tips for repaying your loan

If you’re looking at the easiest way to repay your loan within the agreed term or sooner, here are some things worth considering.

Manage your home loan online
By managing your home loan in NetBank you can review transactions as far back as two years ago, view loan statements as far as seven years ago, change your repayment amounts or schedule additional repayments.

Register or find out more about managing your loan in NetBank.

Open an interest off-set savings account
You can reduce your interest repayments and cut years off your loan with our Mortgage Interest Saver Account. It’s a special savings account linked to your home loan where any savings held are off-set against the balance of your loan daily. That means every cent you have in your Mortgage Interest Saver Account helps you repay your loan.

Find out more about an interest off-set savings account.

Coming to the end of a fixed rate term

If you’re nearing the end of a fixed rate period on your home loan there are a number of options available to you, including:

• Leaving your loan to revert to the Standard Variable Rate.
• Taking out a Line of Credit (Viridian) or Economiser.
• Taking out a Wealth Package.
• Switching to another Fixed Rate (a switching fee will apply).

Now might be the perfect time to book a free Home Loan Health Check to help find the best option for you.

Find out more about your loan options.

Repaying your home loan early

If you’re a variable rate home loan customer and things are going ahead of schedule you can repay your home loan in full at any time. However, a deferred establishment fee may be payable if you choose to repay your loan in full within four years from the start date of the loan.

If you have a fixed rate, you can repay up to an extra $10,000 off your loan per year. If you want to repay more than $10,000 on your loan in any given year, or repay your loan in full, before the agreed maturity date of the fixed rate, you will need to pay an administrative fee and may also need to pay an early repayment adjustment.

If you want to switch to a loan with a variable rate before the agreed fixed term is over, you will need to pay a switching fee and may also need to pay an early repayment adjustment. View our switching terms and conditions.

Find out more about early repayment.

There are three ways you can repay your loan earlier than planned. These are:

• Increase the regularity of your repayments.
• Make larger repayments.
• Make lump sum repayments.

Increase the regularity of your repayments
You could save on interest and pay off your loan sooner by making fortnightly or weekly repayments instead of monthly.

Find out more about increasing your repayments.

Make larger repayments
You also have the choice of paying more than your required monthly repayment amount. This way you could reduce your loan term and save on interest.

Find out more about making larger payments.

Make lump sum repayments
If you can make lump sum repayments, your total repayment amount could end up being less and you could own your home sooner.

Find out more about making lump sum repayments.

To find out how you could pay off your loan and own your home sooner, talk to one of our Home Loan Experts.

 

Why repayments change

Advice for joint borrowers