Understanding home loan repayments

Things you need to know about how home loan repayments work and why they might change over the life of your loan.

Manage your home loan repayments

Direct debit repayments

To set up your home loan direct debit, complete the Direct Debit Request (DDR) form and then call us on 13 2224 or visit your nearest branch. If you’d like to change the date of your direct debits, give us a call.

Complete DDR form

Increase or decrease your repayments

If you have a Variable Rate home loan with us and you’re paying Principal and Interest, you can:

  • increase your repayments to pay your home loan off faster and reduce the interest you’ll pay over time 
  • reduce your repayments to free up some cash, provided we’ve reduced the interest rate or you’ve gotten ahead on your loan by making extra repayments

We’ll need to check that your new repayment amount allows you to repay the loan in the remaining loan term.

If you have a Fixed Rate home loan, are paying Interest Only or are otherwise unable to make changes yourself in NetBank, call us on 13 2224. If there is more than one person authorised to operate on the loan, you’ll need to visit your nearest branch to make any changes.

Change in NetBank

Monthly, fortnightly or weekly repayments

If you have a Variable Rate home loan and make Principal and Interest repayments, you can choose to make your home loan repayments monthly, fortnightly or weekly.

For Interest Only payments, you can only pay monthly.

Change in NetBank

Interest Only vs Principal and Interest

  • Principal and Interest repayments reduce your home loan balance and cover the interest owed each repayment. However, your minimum monthly repayment amount will be higher compared with Interest Only
  • Interest Only repayments will lower your minimum monthly repayment amount, but you'll pay more interest over the life of your loan

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Switch to a Principal and Interest home loan

  • To switch in NetBank, go to 'Settings' and select 'Change home loan repayment type'
  • To switch in the CommBank App, tap 'View accounts' then choose your home loan. Tap 'Manage loan' and then 'Change to Principal & Interest / Interest only'.

Switch in NetBank

Accessing your additional repayments

If your circumstances change unexpectedly, accessing additional home loan repayments you’ve made could be an option.

Depending on your loan type, you may be able to:

  • redraw your additional repayments, or 
  • take a repayment holiday for up to 12 months.

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Repayment relief

If your circumstances do change, and you think you’ll find it difficult to meet your required repayments, we can help.

Talk to one of our lenders to discuss your options, which can include extending your loan term to reduce your required monthly repayments.

Call us on 13 2224

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Things you should know

As this advice has been prepared without considering your objectives, financial situation or needs, you should consider its appropriateness to your circumstances before acting on the advice. You should also read our Financial Services Guide.