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Parental pause
A home loan feature that supports a growing family

Welcoming a new family member to the family can place a pretty big strain on finances. Incomes decrease for a period of time, medical expenses increase and daily living expenses change. 

At Bank Australia we don’t want this to interfere with the excitement of this precious occasion – we want to support families through this time. 

To do this, we offer you the option of pausing your home loan repayments to give you some breathing space.  This allows you to take a break from payments for three months, or halve them for six. 

Whether you know you are welcoming a new family member or it’s a possibility way into the future, it’s a feature worth considering if you’re thinking of taking out a home loan with us or if you already have one. 

A couple of key criteria you’ll need to meet to eligible for the pause include: 

  • You need to be an owner-occupier
  • Your loan has to have been established with Bank Australia for at least 12 months

 You can check out the full terms and conditions below. 

Parental pause terms and conditions

Customers may apply for a 3 month break in repayments, or a 6 month reduction (up to half) of their repayments on their loan, subject to the following conditions:

  • Only loans for owner-occupiers are eligible
  • A request must be provided detailing an inability or choice not to work in favour of caring for your child (evidence of maternity/ paternity leave approval may be required)
  • The loan must be established with Bank Australia for at least 12 months before applying for payment reductions
  • Accounts must be operated within Bank Australia terms and conditions prior to the request, and loans must not be in arrears or have had any repayments missed within the six months prior to the request
  • Excludes Bridging loans, Interest Only loans and Home Equity loans • Subsequent payment reductions can be made no sooner than 12 months from completion of any previous repayment reduction period
  • A maximum of 2 repayment pause breaks are permitted for loans that are subject to Lenders Mortgage Insurance (LMI)
  • Loans that exceed a loan to value ratio (LVR) of 90% for Family Leave, or 90% for eco-pause, are not automatically eligible
  • Loan repayments may need to be recalculated at the conclusion of the break to ensure the loan term does not exceed the maximum permitted by Bank Australia or the LMI insurer