What are Repayment holidays?

Repayment holidays, also known as payment holidays or loan deferment, are a feature of some low rate home loans that allow borrowers to temporarily stop making repayments on their loan. This is typically offered by lenders for home loans, personal loans, and other types of consumer loans.

During a repayment holiday, the borrower does not need to make any repayments on the loan for a set period of time. Depending on the lender and the type of loan, repayment holidays may be available for a period of several months or even up to a year.

By taking a repayment holiday, borrowers can free up some cash flow and use the money for other pressing needs. It’s important to note that repayment holidays are only available when your repayments are in advance, are not available on interest only loans, and applications are subject to the lender’s approval.