You can apply for a repayment holiday for a set period of three up to 12 months.
There are a few things to keep in mind:
- You’ll need to have sufficient money available in your redraw facility to cover your home loan’s Required Monthly Repayment Amount (RMRA) during the repayment holiday period. Your redraw balance amount must have sufficient funds to cover the term of the repayment holiday, plus one month's extra repayment – so if, for example, you’d like a repayment holiday period of three months, then your redraw balance should cover at least four months of your RMRA.
- Once the repayment holiday period is set up, we’ll deduct your RMRA from your redraw balance and your access to redraw will be suspended. You’ll need to monitor your redraw balance to ensure the RMRA can be met each month. If insufficient funds are held in your redraw, you’ll need to either contact us to have your DDR repayments reinstated, marking the end of your repayment holiday period, or make alternative arrangements to meet the RMRA via manual payment into the loan to avoid your loan falling into arrears and Late Payment Fees.
- Your RMRA may change to keep you on track to pay off your home loan within the agreed term. This can occur for a variety of reasons, such as changes to your loan balance, interest rate changes or product type changes. If this is the case, we’ll let you know even if you are within your repayment holiday period. This may mean that when your DDR repayment is reinstated, the amounts debited may be higher than when you commenced the repayment holiday period. Your DDR repayment frequency will be the same as it was before the repayment holiday started.
You can contact us at any time to end your repayment holiday period earlier and have your DDR repayment reinstated or if you close your nominated DDR account during the repayment holiday period.