skip to log on skip to main content
VoiceOver users please use the tab key when navigating expanded menus

Article | 3 minute read

What deferring your home loan repayments means

Deferring your home loan repayments means that for a period of time, you won’t have to make repayments on your loan. Remember, you’ll still be charged interest over this time and you’ll also need to pay back the total amount in full to your lender eventually. Deferring your home loan repayments today could mean paying more over the longer term. So think carefully before deciding a loan repayment deferral is for you and, of course, we have specialists available to talk through your situation and options.

What’s on this page?

How long you can defer your home loan repayments

If you have not deferred your home loan repayments previously, you might be eligible to do so until 31 March 2021. If you are already on a deferral arrangement and need some more time, speak to us and we will try to find an option that helps you.

How much will deferring your home loan repayments actually cost

When you defer your repayments interest will continue to be charged and added to the balance of your loan, this is known as ‘interest capitalisation’. At the end of your deferral period, your regular repayment amount might be higher than it was previously because of that amount of interest added to your loan.

Once the repayment deferral ends

Once your repayment deferral has come to an end, the terms agreed by your lender and you come into play.

Often, this means either: 

  • Your minimum repayments to your lender might be raised to reflect interest added up during this time; or
  • If the length of your entire loan term has been extended, you might be able to pay roughly the same minimum repayment as before, but you would be paying interest for a longer period of time.

Before speaking to your lender about deferring your repayments, you might want to read up on repayment types to explore your options

Case study: Interest capitalisation 


Interested in tailoring the math towards your own financial situation? 

You might want to check out our home loan repayment calculator

How deferring home loan repayments can impact your credit score 

If you and your lender have agreed to defer your loan repayments, this should not impact your credit score. However, if your lender does not agree to defer your repayments, that's a different story: your credit score will most likely be impacted.

Other options for staying on top of your home loan

If your circumstances have changed, you’re not alone. We’ve put together a handy hub of pages for staying on top of your home loan

If you’re banking online with us, you can explore the following options by logging into your account:

You might also consider switching to interest only repayments or extending your interest only period

How to arrange for your loan payments to be deferred

If you have questions about whether applying for assistance is the right step for you, get in touch with us on 1800 252 845, Monday to Friday, 9.00am to 7.00pm (AEST).

Related articles

Home loan Frequently Asked Questions

Our home owner tips and guides can help you, whether you're at the planning and budgeting stage, ready for settlement, considering selling your property, or looking to protect it with home insurance. 

Keep reading 


What’s the difference between redraw and offset?

Redraw facilities and offset accounts have many similarities. But there are some important differences too.

Keep reading 


Things to consider when working out how much to borrow

If you’re in the market for your first home, then you want to know how much you can borrow, right? Once you have a ball-park figure, you can look for homes in your price range with more confidence.

Keep reading 


The information set out above is general in nature and has been prepared without taking into account your objectives, financial situation or needs.  Before acting on the information, you should consider whether the information is appropriate for you having regard to your objectives, financial situation and needs. By providing this information ANZ does not intend to provide any financial advice or other advice or recommendations.  You should seek independent financial, legal, tax and other relevant advice having regard to your particular circumstances.