There are several options available for pausing your home loan repayments. Some of these can be quite simple, while others may be a little more challenging.
Temporary mortgage payment suspension through hardship variation. If you are unable to keep up with your regular repayments because of temporary financial stress you can apply to your lender for a hardship variation. If your lender agrees they will pause your repayments and add all interest charges on your home loan to the end of the loan term. This can extend your loan term and add thousands of dollars to your original loan amount, but could keep you from losing your home.
Temporary mortgage payment reduction. If your income has been reduced temporarily, such as one spouse losing a job and leaving you with only one income, you may be able to apply for a temporary reduction in your mortgage payments. In this situation, your lender may ask you to provide an amount of money you think you can comfortably repay without putting you into financial hardship.
Temporary mortgage payment suspension using your redraw facility. If you have been making extra payments off your mortgage balance, you may find that you have funds available. This is known as a redraw facility. Rather than withdraw these, you may be able to use them to substitute making repayments. Note that not all mortgages have a redraw facility.
Switch payments to interest-only. If your mortgage has principal and interest repayments you might be able to temporarily switch to interest-only repayments. This will reduce your monthly repayments significantly in the short term because you only have to pay the interest charged on your loan. But over time this will cost you more because you will need to repay the whole mortgage eventually.
Refinance your mortgage. How competitive is your interest rate? If you can switch to a lower rate your repayments will go down. While not a repayment holiday, refinancing to a lower home loan rate will make your life a little easier.