Westpac extends COVID-19 mortgage relief by up to 12 months

Westpac home loan customers who have been financially impacted by COVID-19 will have access to extended repayment relief on their mortgages following an announcement by the major bank on May 23. 

According to Westpac, eligible customers making interest-only payments will be able to extend that interest-only period for up to 12 months, while customers making principal and interest payments will be able to make the switch to interest-only payments for the same period. 

The latest initiative follows an earlier move by the bank to allow customers who have lost income as a result of the coronavirus outbreak to defer mortgage repayments for up to three months, with the opportunity for a three month extension subject to review. 

According to recent figures from the Australian Banking Association (ABA), 429,000 mortgages have been deferred as a result of COVID-19, with Westpac home loans general manager Will Ranken confirming that over 100,000 Westpac customers have taken up the opportunity. 

“We have had more than 115,000 customers defer mortgage repayments as part of our COVID-19 consumer support package,” he said. 

“However, we recognise that many customers who have been financially impacted by COVID-19 still want the option of making some repayments during this time. These changes mean it is now simpler for customers to apply to extend their interest only loan term, or switch their repayments to interest only.”

The bank has encouraged mortgage holders to weigh up the benefits and drawbacks of extending or to interest-only repayments though. While the additional money saved could be of use to impacted households now, it will still need to be repaid down the line. 

Similarly for borrowers who have deferred home loan repayments, interest and fees that go unpaid during the deferral period could be added to the outstanding loan balance resulting in higher repayments later on. 

RELATED: Big bank coronavirus support: How to defer your mortgage repayments

For more information about the financial response from Westpac and other Australian banks to the COVID-19 outbreak, make sure you check out our comprehensive guide on everything you need to know about Coronavirus and your finances.

Home loans 2020 - last updated 29 March 2024

Search promoted home loans below or do a full Mozo database search. Advertiser disclosure
  • Offset Home Loan

    Package, Owner Occupier, LVR<60%, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    6.15% p.a. variable
    6.40% p.a.

    Ability to open up to 10 offset accounts per loan account. Fast online application. Linked Debit Mastercard® with fee-free access at ATMs across Australia. Package a credit card with your home loan and the annual card fee will be waived (T&Cs apply). 40% deposit required.

    Compare
    Details
  • Mozo Expert Choice Badge
    Express Home Loan

    Owner Occupier, Principal & Interest, LVR <90%

    interest rate
    comparison rate
    Initial monthly repayment
    6.01% p.a. variable
    6.14% p.a.

    Get fast online approval from the award-winning Bendigo Bank Express Home Loan. Multiple offset accounts and redraw available. 100% offset on variable rate loans and partial offset on fixed rate. Flexible repayment options. New home loans only.

    Compare
    Details
  • Mozo Expert Choice Badge
    Fixed Rate Home Loan

    Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    5.99% p.a.
    fixed 2 years
    6.24% p.a.

    Secure a low rate and enjoy the certainty of repayments, with the BCU Fixed Rate Home Loan. Save with no ongoing annual fees. Pay up to $25,000 extra during a fixed period (T&Cs apply). Lock in for up to 5 years.

    Compare
    Details

* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

^See information about the Mozo Experts Choice Home Loan Awards

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.