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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).

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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.

Property price information in an ANZ property profile report, such as a price prediction or price range, is an estimate, not a valuation. Property price information may not be available for all properties, is for personal domestic use only and may change daily. Actual sale prices may be different.

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ANZ may provide pre-approval (also known as approval in principle or conditional approval) to eligible customers who apply for an ANZ home loan and complete an application form and satisfy any other applicable requirements. Pre-approval is an approval for a loan subject to conditions being met, including that security is satisfactory to ANZ. Australian Credit Licence Number 234527.

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ANZ Mobile Lenders operate as an independently operated ANZ Mortgage Solutions franchise of Australia and New Zealand Banking Group Limited (ANZ) ABN 11 005 357 522. Australian Credit Licence Number 234527.

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