· Timeframe – banks will generally offer holidays on repayments for a maximum period of 12 months

· Who can apply – most banks stipulate that you must have a loan with them for at least 2 years & you must not have been late with any previous payment

· Ahead in repayments – you also need to be ahead in your loan repayment schedule

· Repayments required – whilst some banks do not require any repayments, some require a reduced payment. Each application is on a case-by-case & bank-by-bank basis

· Re-draws – banks will not allow for you to re-draw on your loan during the period of your “holiday”

· Interest – unfortunately getting a mortgage holiday doesn’t mean the bank will freeze the interest as well. Loans still accrue at the normal interest rate & subject to rate rises

· No extra fees – generally banks don’t charge any extra fees, but additional mortgage insurance may be required

· Payments on re-commencement – once you return from your holiday, expect to have higher repayments recalculated on the new balance

This tip was provided by Mr Taxman, Adrian Raftery, author of 101 Ways to Save Money on Your Tax - Legally! 2019-2020 edition (Wiley, May 2019, AU$25.95). This information is of a general nature only and does not constitute professional advice. You must seek professional advice in relation to your particular circumstances before acting.