Key elements of a loan.

Interest rates

When you take out a home loan, the interest rate you lock in determines how much you are charged for borrowing the principal loan amount. You can choose a fixed rate which stays the same, or a floating rate which can go up or down.

Principal and interest

To pay off a loan, you have to pay back the principal - that's the amount you have borrowed - plus pay the interest you are charged for borrowing it.

Repayment structure

When signing up to a Westpac home loan, you have a choice in how you repay the principal and the interest. Different loan types enable you to repay in different ways.

Loan types.

Table loan

With a table loan, your regular payments stay the same, unless your interest rate changes. Initially, payments mostly pay off the interest you owe, but over time, as you start to pay down your loan, more of each payment goes towards paying off the principal. This is the most popular type of home loan because your regular repayments are the same, which can help you to budget.

A number of Westpac home loan options can be paid off as a table loan, including Choices Floating, Choices Offset and Choices Fixed

Reducing (flat) loan

With a reducing or flat loan, you pay off more at first. This means that as the balance goes down, your repayments also reduce over time.

A number of Westpac home loan options can be paid off as a reducing loan, including Choices Floating, Choices Offset and Choices Fixed

Revolving credit loan

A revolving credit loan combines your home loan and everyday spending into one account. There are no set repayments, but your balance needs to stay below the limit at all times. This means that your balance may fluctuate up and down depending on your spending habits. For this type of loan you are only paying interest on the balance of your loan not your limit.

As part of a revolving credit facility, you can also choose a small non-limit reducing period. In this scenario, the limit will stay the same for the agreed period. You will still have to repay your loan before your maturity date so your new limit reduction amounts will be higher than before.

Choices Everyday Floating can be paid back as a revolving credit loan.

Interest only loan

With an interest only loan, you are repaying only the interest owing, and none of the principal. An interest only loan will cost you more interest in the long term than a table or reducing loan because you're not paying off any of the principal. Because you still have to repay your loan before your maturity date, interest only periods are available on a short term basis to ensure you can still pay down the loan in time. 

A number of Westpac home loan options can be paid off as an interest only loan, including Choices Floating, Choices Offset and Choices Fixed.

Calculators.

Find the best option for you with our home loan calculators.

Get in touch.

Meet with an expert

Our Mobile Mortgage Managers can come to you, when it suits you best.

Find a Mobile Mortgage Manager

Talk to us

Call us any time from 8am - 6pm weekdays, 9am - 3pm Saturday.

Call 0800 177 277

Visit us

Make an appointment to talk to a home loan expert in branch.

Find your nearest branch

Things you should know.

1 Conditional approval requires a credit check and confirmation of the details provided in your application. Other conditions may also apply depending on the nature of your application.

Westpac's home loan lending criteria and terms and conditions apply. An establishment charge may apply. A low equity margin may apply. An additional fee or higher interest rate may apply to home loans if the application is accepted but does not meet the standard lending criteria.

Documents and fees

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