Repayment Safeguard

Repayment Safeguard

A unique benefit of all HomeStart loans
giving you greater peace of mind. 

Making budgeting easier


The certainty of our Repayment Safeguard makes budgeting and managing your finances easier once you’ve purchased your own home. 

With HomeStart, changes in interest rates won’t impact your repayments but can impact the duration of your loan – if rates go down, you can pay off your loan faster but if they go up, it might take longer*. 
 


How it works

  • Your initial repayments are set for the year based on what you can afford, without a fixed loan term.
  • If interest rates go up or down, your repayments remain the same for 12 months, but your loan term will change*. 
  • Each year on your loan anniversary, we review your repayments and adjust them in line with inflation. 
  • We will let you know your adjusted increased repayment amount for the upcoming year before it changes.

 

To learn more about our Repayment Safeguard and how it works, watch our video below.
 
 

* Because of the unique way we set your repayments, there may be a period of time where your loan capitalises. Capitalisation means that the interest added to your loan is greater than your monthly repayments, with the difference adding to the outstanding balance of the loan - this means your loan balance increases. Capitalisation is to be expected at times, it is part of our product design and you will not be in default if it occurs.