If you’re currently on a payment pause, you haven’t had to make any repayments on your home loan during this period, however interest is accruing on your loan. This means the interest you would have paid during your payment pause has continued to accrue and will be added to your home loan balance. At the end of your payment pause, your repayments will be recalculated to adjust for the increased outstanding balance on your home loan.
As an example, if you have a $400,000 balance on your home loan at 3.50%p.a. and 20 years remaining on your loan term at the start of your payment pause, you would accrue $7,052 in interest at the end of a six-month payment pause.
This would increase your monthly principal and interest home loan repayments by $83 per month over your remaining loan term, following the payment pause period.
This is an example only and the actual cost to you will depend on your own individual circumstances.