How To Pay Your Home Loan

By Matthew Kenworthy | Finance Tips

“How Do I Make My Repayments?” is a common question for first home buyers. It’s also an important question.

A home loan can be relatively simple. The bank gives you money, you then pay it back.

If you have had a home loan it may seem obvious that loan repayments are made by direct debit.

We’re here for our clients to answer any questions they have. Whether they are first time borrowers, or have a large property portfolio.

How Do I Make The Repayments?

Home loans repayments are made via direct debit. This helps reduce the risk of you missing a repayment and defaulting on your loan.

With most lenders a direct debit form is completed with the home loan contracts. On this form you can specify which bank account the money is to be debited from. You will also be able to specify the frequency of repayments.

Lenders will generally allow you to make either fortnightly or monthly repayments. Most lenders will also permit weekly repayments.

It is important to note that if you have an Interest Only loan repayments must be made monthly. The only exception is if you are paying fixed interest in advance.

Do I Have To Have A Bank Account With My Lender?

The answer is ‘No’ with most lenders. The majority allow you to debit your repayments from your accounts with other banks.

For example, you could have your main bank account with Bank A. Your home loan could be with Bank B, who will debit your bank account with Bank A.

There are many smaller lenders who offer only home loans. These lenders might not even have transaction account options available. Whilst these lenders are not as full featured, they often have cheaper interest rates as a result.


If you have any questions about how a home loan works we can answer them. We understand that you’re the one who has to pay the money back, so it’s important you have all the answers you need.

About the Author

Matthew Kenworthy is a specialist in all aspects of Residential & Commercial Finance. He can assist all borrowers from First Home Buyers to Property Investors with Large Portfolios.