Ways to reduce payments.

Extend your loan term

Extending your loan term up to a maximum of 30 years can reduce repayments however, this could mean that you will end up paying more interest over the life of the loan.

Reduce repayments for a time

If your regular repayments are currently higher than the minimum required, you could reduce them to your minimum. However, you will pay more interest over time and it will take you longer to pay off the unpaid balance.

Apply for interest only

Paying just the interest charges and not the principal on your loan would reduce your repayment amount for that period. This option is only available for a maximum of 3 years for an owner-occupied property.  Or a maximum of 5 years for an investment property.

The principal balance of your loan won't decrease while on interest only so the total interest you will pay over the life of your loan will be higher. The repayment amount after your interest only period ends will also be higher as you need to repay your loan by the end of the original loan term. A financial assessment is required and standard lending criteria apply.

Consider a loan repayment deferral

If you are eligible, you could consider pausing your repayments for a short period of time. However, this will mean you will end up paying more in interest over the life of your loan. Your minimum repayments may increase at the end of the agreed period or you might be able to extend the term of your loan. Do get in touch to discuss what option will best suit you.


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Things you should know.

Westpac's home loan lending criteria, terms and conditions apply. A low equity margin may apply.

Documents and fees

View terms and conditions for all our home lending products here.