Defer up to 50% of repayments for up to 12 months
Lifestyle Option is designed to help customers whose income is temporarily affected by situations such as parental leave, accident or retrenchment. It is available on most full and low doc loans offered by a particular lender.
In the event of loss of income due to pregnancy, retrenchment or disability through injury or sickness, clients can apply to defer half of their regular repayments for up to six months, twice during the life of the loan.
Lifestyle Option - Key Features:

• Available for owner-occupiers only (not available for investment loans).
• Available on most full and low doc loans, or during the first 10 years of Line of Credit Home Loan offered by the lender.
• A minimum of 50% of normal monthly interest only repayments must be maintained.
• The maximum reduced period is six months. This can be reassessed for a maximum of a further six months. The total duration must not exceed 12 months during the life of the loan.
• A formal Lifestyle Option Request must be submitted, in accordance with the terms and conditions of the loan agreement. All borrowers must sign the request.
• The Lifestyle Option Request must be accompanied by applicable supporting evidence, for example; a redundancy notice, maternity/parental leave approval, or medical documentation.
• At the time of the Request, the loan payments must be up-to-date, and the loan must not exceed 90% LVR for full doc products, or 80% LVR for Low Doc products. The LVR is calculated using the current loan limit.
• With certain exceptions, any available redraw must be used before the Lifestyle Option commences.
  

Waiting Periods

• Maternity / Parental Leave; the loan must be drawn down at least 12 months prior to applying for the Lifestyle Option.
• Retrenchment, Accident or Sickness; the loan must be drawn down at least 6 months prior to applying for the Lifestyle Option. Mortgage Insurer approval is required.

To find out more, call Mortgage Buddy on 1300 30 29 29

The Australian Home Loan Industry boasts in excess of 3,000 loan products, options and variations. Mortgage Buddy as a true Mortgage & Finance Broker can assist you with the majority of these various home loan options.