How does NAB's repayment holiday work? Are we eligible?

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Karls
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Joined: Tue Sep 03, 2019 8:00 pm

How does NAB's repayment holiday work? Are we eligible?

Postby Karls » Tue Sep 03, 2019 8:04 pm

Hi, do you know how NAB’s repayment holiday works? My wife will be on an extended maternity leave longer than originally planned. Previous to the maternity leave, we had been making extra repayments on our home loan with NAB on a variable rate home loan. Currently, most of my income goes towards the mortgage, car repayments and household expenses. We don’t want to dip into our savings so, we’re looking for a repayment break of around 5-6 months if possible. Are we eligible?

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Otto Dargan
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Re: How does NAB's repayment holiday work? Are we eligible?

Postby Otto Dargan » Tue Sep 03, 2019 8:52 pm

Hello Karls. Welcome to the forums.

Yes, from what you’ve mentioned so far, you look like you’re eligible for a repayment holiday with NAB. As 'maternity leave' is one of the most common reasons borrowers ask for a repayment holiday.

Their policies are quite clear on this. It is available for borrowers who are:
  • On a fixed rate or a variable rate home loan.
  • Ahead of their scheduled repayments and have good conduct on their home loans i.e. not missed any repayments on their mortgage for the last 6 months.
  • And is typically available for a period of two months up to twelve months.
Generally, they are available with other lenders based on your lender's policies, your loan product, and your financial circumstances.

To apply please call their customer care hotline. Both you and your partner will need to consent via the phone.

Please note that before the end of the repayment holiday, the bank will review your contracted repayments as necessary to make sure that the loan is repaid within the loan terms.

Give us a call on 1300 889 743 or fill in our free assessment form so we can recommend a suitable solution for your needs.

Cheers,
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

Karls
Posts: 3
Joined: Tue Sep 03, 2019 8:00 pm

Re: How does NAB's repayment holiday work? Are we eligible?

Postby Karls » Wed Sep 04, 2019 11:49 am

Thank you, I figured as much. What are the terms and conditions I need to be aware of?
Can they cancel my repayment holiday prematurely for any reason? Can I ask for an extension?

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Otto Dargan
Mortgage Specialist
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Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
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Re: How does NAB's repayment holiday work? Are we eligible?

Postby Otto Dargan » Wed Sep 04, 2019 2:52 pm

Hi Karls,

Firstly, the terms and conditions you should be aware of when entering into a repayment holiday agreement are that:
  • Interest, fees and charges will continue to accrue and are added to the home loan amount during this period.
  • Redraw facility is not available during this period.
Secondly, banks can cancel your repayment holiday period if they reasonably believe:
  • There’s been some significant changes in their financial circumstances since the repayment holiday period began,
  • There’s been a default under the home loan contract, or
  • The loan amount won’t be paid during the life of the loan term.
As for the last question, yes, you can request for an extension up to the maximum repayment holiday period of 12 months with NAB.

Cheers,
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

Karls
Posts: 3
Joined: Tue Sep 03, 2019 8:00 pm

Re: How does NAB's repayment holiday work? Are we eligible?

Postby Karls » Wed Sep 04, 2019 8:18 pm

That’s good to know. We’ve paid an extra $20,000 or so on our mortgage. Is that enough to cover for six months seeing as our monthly repayment is $2,162 (2162*6=$12,972). Are there any other options similar to this?

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Otto Dargan
Mortgage Specialist
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Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
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Re: How does NAB's repayment holiday work? Are we eligible?

Postby Otto Dargan » Wed Sep 04, 2019 9:52 pm

Hi Karls,

Yes, that should work.

A few alternative options to a repayment holiday:
  • Refinance your home loan
  • Redraw from your account
  • Change the repayment frequency
  • Apply for financial hardship/ hardship variation with your lender.

Instead of a full repayment holiday, you can also ask for a reduced repayment amount with a few lenders. It can be reduced up to 50%.

Give us a call on 1300 889 743 or fill in our free assessment form to find out if you qualify for a refinance.

Cheers,
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts


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