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

Any general questions you might have in regards to loans and finance.
Post Reply
User avatar
Otto Dargan
Mortgage Specialist
Posts: 7730
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
Contact:

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

Post by Otto Dargan »

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

User avatar
Otto Dargan
Mortgage Specialist
Posts: 7730
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
Contact:

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

Post by Otto Dargan »

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

User avatar
Otto Dargan
Mortgage Specialist
Posts: 7730
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
Contact:

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

Post by Otto Dargan »

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

Post Reply