Support for home owners

We’re here to help our home loan customers financially affected by COVID-19. Depending on your circumstances, we have the following options available.

1. Reduce your existing repayments on your loan

If you’re currently paying above the minimum repayment amount on your home loan, you can reduce your repayments back to the minimum repayment amount at any time.

See how

2. Reduce your repayments to cover interest

If you’re granted this type of assistance, your repayments will reduce to cover the interest portion of your regular repayment only and not the principal, for the period of assistance. This option is not appropriate if your home loan is already on an Interest Only structure.

Please note: Your minimum repayment amount may increase at the end of the assistance period and you may pay more in interest over the term of the loan as your account balance will not reduce as it usually would. 

Let's look at an example.

If you had a loan balance of $500,000 at an interest rate of 3.5%p.a., and you had 25 years remaining on your loan, your monthly repayments would be $2,504. If you choose to enter this assistance for 3 months, your monthly repayment would reduce to $1458/month for the assistance period. As a result of this lower repayment, during the duration of the assistance your loan balance will not reduce at the rate it normally would have. To repay your loan within the same term, your monthly repayments would increase to $2,519 at the end of the assistance period, and you would end up paying an extra $1,720 in interest over the remaining term of your loan.*

To apply for a reduction on your repayments, please call us on 0800 606 606 and press 2 to speak to one of our team. We’ll ask some questions on how COVID-19 has impacted you financially and assess whether this type of assistance suits your situation.

You can cancel your COVID-19 assistance at any time before the end of the assistance period by contacting us on 0800 606 606 and pressing 2.

3. Home Loan repayment deferral

As agreed by the Government and banks, deferred mortgage repayments are also an option. If you’re granted a deferral, you’ll not be required to make the regular repayments on your loan for the period of the assistance.

Please note: Interest will continue to accrue on your home loan during this period. This accrued interest will be added to your loan, and may increase your loan balance. Your minimum repayment amount may increase at the end of the deferral period and you may also pay more interest over the term of the loan due to this.

Let's look at an example.

If you had a loan balance of $500,000 at an interest rate of 3.5%p.a., and you had 25 years remaining on your loan, your monthly repayments would be $2,504. If you opted for this assistance for 3 months, your monthly repayments would increase to $2,542 at the end of the assistance period to repay your loan within the same term, (an extra $38 a month to cover the additional interest accrued during the assistance period, and to allow for the reduced number of repayments). You would end up paying an extra $3,753 in interest over the remaining term of your loan as a result of this assistance.* 

To apply for a home loan deferral, please call us on 0800 606 606 and press 2 to speak to one of our team. We’ll ask you some questions on how COVID-19 has impacted you financially and assess if this type of assistance suits your situation.

You can cancel your COVID-19 assistance at any time before the end of the assistance period by contacting us on 0800 606 606 and pressing 2

4. What are my other options beyond repayment deferral/reduction? 

We also have a range of other financial support options available. Please call us on 0800 606 606 and press 2 to talk to us about your options. If you are already on COVID-19 financial assistance and would prefer to extend your term instead of moving to a higher repayment amount at the end of the assistance period, you can call us to discuss this option before the end of your assistance.

If you are able to exit this assistance early or make additional contributions, please call us on 0800 606 606 and press 2.

*These examples do not take into account your personal financial situation or goals. They are based on the assumption that the interest rate remains at 3.5% p.a. throughout the term of your loan.

Need help, but don’t qualify for COVID-19 Assistance?

If you need financial support but have not been impacted by COVID-19, you can consider making an application for Hardship assistance instead.

Find out more

Frequently asked questions

Any Westpac home loan or personal loan customer who has been impacted financially by COVID-19 can apply for a payment deferral or reduction, although approval of the request will depend on an individual’s financial situation. Eligibility may vary for customers who are already under specialist debt management. Westpac Choices Everyday customers are not eligible.

Having your payments deferred or reduced will mean that you will pay more interest over the term of your loan. For that reason, we do not recommend a deferral if you are able to continue making payments.

Whilst you are receiving a repayment deferral or reduction we will take steps to ensure that your credit score is not negatively impacted as a result of this financial assistance, provided your account was not in arrears before the pandemic. Your balance and any overdue amounts will also not be disclosed.

It begins when your next repayment is due after your application has been approved.

You may be able to reduce your repayments if you’re currently paying an amount above the minimum repayment amount. We also have a range of other financial support options available, including temporary overdrafts.

Please call us on 0800 606 606 to talk to us about your options.

Yes, if you’re able to resume making repayments within the financial assistance period, please call us on 0800 606 606 (+64 9 375 9907 for overseas).

We will discuss with you the appropriate length of assistance based on your individual financial situation.

You don’t need to do anything. When your assistance expires your payments will resume automatically. We’ll send you an email or letter to let you know the dates your repayments will resume and your estimated repayment amounts.

If you’re unable to resume your loan payments at the end of your loan deferral or repayment reduction, one of the options available to you will be to apply for an extension. Please call us 2-3 weeks before your assistance ends on 0800 606 606 to apply. One of our team will speak to you about how COVID-19 has impacted you financially and assess whether this type of assistance suits your situation.

You’re able to apply to have your assistance reinstated. Call us on 0800 606 606 to speak to one of our team, who will ask you some questions on how COVID-19 has impacted you financially and assess whether this type of assistance suits your situation.

To apply for repayment assistance, please call us on 0800 606 606. One of our team will ask you some questions on how COVID-19 has impacted you financially and assess whether this type of assistance suits your situation.

Unless you request otherwise, the loan term would remain the same but your regular repayments would increase at the end of the deferral/reduction period. Alternatively, we could structure the loan so your payments remain the same as they did before the deferral/reduction period, but this would extend the loan term.

We suggest the decision about changes to the loan repayments at the end of the deferral period is best left until you have certainty about your position at that time – there’s no need to decide that now.

If during the assistance period you find you can increase your repayments, please let us know and we can make those arrangements.

You can call 0800 606 606 to talk to us about your individual loan and the effect of deferring or reducing repayments. We will also send a letter or email to every customer who is granted a repayment deferral or reduction confirming the changes to their loan.

Westpac Life home loan and personal loan repayment insurance is an optional insurance that may provide cover for your loan repayments in the event of death, inability to work due to illness or injury, or redundancy. It is different to house insurance, which may cover repairs or a rebuild if your house is accidentally damaged, and which is generally required when you have a mortgage.

If you have home loan and/or personal loan repayment insurance you may have access to benefits which could assist you at this time - please refer to your policy document for the terms, conditions, exclusions and limits that apply to your policy, and consider contacting your insurance provider to lodge an insurance claim.

If your policy is underwritten by Westpac Life-NZ-Limited you can call us on 0800 738 641 to lodge a claim (if overseas call +64 3 372 4855). Any claim payment is subject to your claim being accepted.

If you have Westpac Life home loan repayment insurance attached to your home loan (e.g. Flexicover), any insurance premiums will continue to be deducted and (if paid from your loan account) interest will continue to be charged on the premium amount.

After you have been approved for a repayment deferral or reduction, your account/s may show as being overdue or over limit during this period in your statements and in Westpac One. However, your agreed repayments during this period will be set out in your acceptance letter.