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What is a home loan repayment?
When you borrow money from a bank, you pay it back by making regular repayments. A repayment is typically made by transferring the minimum amount owed on or before the due date. With Bank Australia, we also offer automated payments.
What am I paying back?
When you’re making a repayment, you’re paying back the principal (the borrowed amount) and interest. With some home loans, you may be able to make what’s called interest only payments for a period of time.
What are my choices?
There are a few different options you can choose from when making repayments. These include:
- making regular, manual repayments
- setting up scheduled minimum repayments
- paying more than your minimum as a once-off or ongoing
- whether you pay it weekly, fortnightly or monthly
- the account you pay it from.
What happens if I miss a repayment in full or in part?
You may fall behind on your loan if you miss a repayment in full or in part. We will contact you to inform you of the missed payment. Please be aware, falling behind on your loan may affect your credit score. We encourage you to keep your repayment amount up to date.
How do I change my repayments?
You can call us on 132 888 to make any changes to your Bank Australia repayments. We can help you with:
- updating your account details
- setting up scheduled minimum repayments
- selecting a different repayment amount as a once-off
- changing your repayment frequency
- answers to any questions you may have.
What is a scheduled minimum repayment?
Scheduled minimum repayments are deducted automatically from your Bank Australia account or nominated financial institution. These scheduled repayments deduct the contracted amount of the loan repayment due. As contracted amounts change, so will the scheduled minimum repayment.
Not to be confused with ‘automated payments’
Automated payments are nominated amounts you can repay at any time from your Bank Australia account or another financial institution. You can change these repayments manually in line with your loan contract.
How do I set up scheduled minimum repayments?
Call us or visit a branch to set up scheduled minimum repayments. You can use the app or internet banking for other repayment changes also, like making an extra repayment or increasing your minimum repayments as a once-off.
What happens to repayments when home loan rates change?
Repayments can do a few different things, depending on the type of loan you have.
Variable rates - Repayments may change in line with the rate. So when rates go up, repayments may change too.
Fixed rates - Repayments stay the same for the duration of your fixed rate term.
Split rates - Repayments on the variable portion may change in line with the rate, and the rest stays fixed.
