What is a repayment holiday?

Learn what a home loan repayment holiday means, how it works, when you might use one, and what to watch out for.

Please note Unloan does not offer repayment holidays.

A repayment holiday also known as a mortgage holiday or mortgage freeze, is an arrangement with a lender that allows you to temporarily pause your home loan repayments. This can be helpful for those occasions where you may need to direct your cash elsewhere. Some reasons include:

  • If your partner is going on parental leave
  • If you’re moving from a double to a single-income household for an extended period
  • Recovering from a serious injury

Depending on your lender, a repayment holiday typically can last up to six months. However, some lenders may extend it to up to a year, depending on the circumstances of your situation. It’s best to speak to your lender about what specific arrangements could be made.

Considering that a home loan is a long-term commitment, having the option to temporarily pause your repayments could help you turn the tide. However, it’s important to consider that taking a repayment holiday could result in increased repayment amounts after the break ends.

If you're experiencing financial hardship, getting support is important, so, please get in contact with us, we’re here to help.

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Calculations are not a loan approval. Applications are subject to credit approval, satisfactory security and minimum deposit requirements. Full terms and conditions will be set out in our loan offer, if an offer is made.

^Rates shown are inclusive of a 0.01% p.a. discount off our reference rate. On each anniversary of your loan’s settlement date, you will receive an additional discount of 0.01% per annum, up to a maximum discount of 0.30% per annum. For purchase loans with a Loan to Value Ratio (LVR) between 80.01% - 90% LVR, a lenders mortgage insurance (LMI) premium and higher interest rate apply. In some cases depending on the property’s location or type, LMI may also be required for LVR between 70.01% and 80%.

*Comparison rate is calculated on a $150,000 secured loan over a 25 year term. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.