In An ANZ Home Loan Repayment Rut?

Life is often a matter of routine. You wake, you eat, you work, you drive, you make your home loan repayments, you sleep. Sometimes, you may like to spice things up a bit by making changes to your routine for example, by take a different route to work, choose something new on the menu or even take a break from your home loan repayments.

Before you get too excited about the prospect of a home loan repayment holiday, arm yourself with the facts in order to evaluate whether this option suits your financial situation.

Many lenders, including ANZ, allow you to take a break from your home loan repayments for a set amount of time. This facility usually depends on the type of home loan you have and conditions always apply.

To be eligible for an ANZ home loan repayment holiday, you need to have built up enough extra repayments to cover the term of your holiday, which is usually between three and six months.

If you are approved to take an ANZ repayment holiday, the extra cash you have built up covers your regular repayments. Your home loan balance still attracts interest charges, which are added onto the total balance during your repayment holiday.

While home owners may choose to take a repayment holiday from ANZ, or another lender, because of sickness, unemployment or even maternity leave, you should give careful consideration to your financial situation before you make a decision. After accumulating extra repayments in your home loan account, it would seem a waste to then use up those extra funds when you could be continuing to reduce your home loan balance.

Apart from using up your extra repayments, the amount of your repayments to ANZ would be increased after your repayment holiday. This is to cover the interest charges over the time of your break, so you are still able to repay the loan in full within the original loan term.

If you feel you may not be able to make any of your home loan repayments, speak to your financial broker as soon as possible. They will be able to help you with a range of solutions, such as refinancing your loan or consolidating your debts, and help you to regain control of your finances.

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