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.

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

    You can modify your repayment amount, frequency, date, or the account your repayments are taken from through the CommBank app or by logging onto NetBank. You can also cancel your direct debit this way. 

    To set up your direct debit arrangement or to make any other requests, you can phone us on 13 2224 (8am-7pm Syd/Melb time on Monday-Friday and 9am-2pm Syd/Melb time on Saturday) or visit your nearest CommBank branch.  

    To make direct debits from another financial institution or from any accounts not in your name(s), review and complete the DDR form before contacting us.

    Change direct debit

  • Increase or decrease your repayments

    By increasing your repayments, you can pay off your home loan faster and reduce the interest you’ll pay over time.

    Alternatively, you can 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 additional repayments.

    When you change your repayments online, we’ll do all the checks to make sure your new repayment amount is enough to repay the loan in remaining contracted loan term.

    Change amount

  • Monthly, fortnightly or weekly repayments

    You can choose to make your Principal and Interest home loan repayments monthly, fortnightly or weekly. Increasing the frequency of your repayments can help you pay less interest over the life of the loan. 

    You might also want to consider aligning your repayment date to a few days after you get paid to avoid missing repayments. This could make it easier to stay on track with other large outgoings you may have. 

    For Interest Only payments, you can only pay monthly.

    Change date or frequency

  • 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

    Tell me more

  • 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

Changing circumstances

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

Tell me about accessing additional repayments

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.

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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.