Unlock your homeownership dream
At Great Southern Bank, we understand buying a first home can be extremely challenging. To help, we now offer the additional option of an extended loan term of up to 40 years. With lower monthly repayments, and the potential to increase borrowing power, it could be the key to unlocking your homeownership dream sooner.
What is an extended loan term?
Typically, home loan terms are between 25-30 years. However, if you’re a first home buyer eligible for an extended loan term, you could have up to 40 years. Opting for an extended loan term at a higher interest rate means you’ll pay more total interest, but it allows you to spread the cost out over a longer period, resulting in lower, more manageable monthly repayments.
Is an extended loan term right for you?
A Home Loan Specialist can help you understand the pros and cons of an extended loan term, so you can decide if it’s the right option – but here are some initial points to consider:
Pros
- Lower monthly repayments
- Enter property market sooner
- Stop paying rent
- Start building equity
Cons
- Higher interest rate
- Longer financial commitment
- Substantially higher total interest paid over the life of the loan
Extended loan term eligibility
You must be
- Between 18 and 40 years of age
- An Australian citizen or permanent resident
- A first home buyer (at least one applicant)
Your loan must be
- For owner occupier purposes
- For the purchase of a new or existing home, or construction of a new home where it includes purchase of a land loan.
- Principal and interest or construction interest only repayments.
- A maximum 90% Loan to Value Ratio (LVR) (inclusive of fees).
For more information, view the full T&Cs including exclusions.
Apply for a home loan
Whatever your home buying dreams, our team of specialists can help guide you through the process step by step.
Complete the form and we’ll connect you with one of our experienced Home Loan Specialists to discuss your goals, eligibility and next steps.
When you’re ready, we’ll help you prepare and submit your application.
Once your application is ready for assessment, your specialist will guide you from approval to settlement.
30-year vs up to 40-year loan term
Compare the difference in repayments, interest paid and loan-to-value ratio.
Your extended loan term options
Download the Key Facts Sheet for this home loan.
Ways to own your home sooner
FAQS
Extended loan term explained
You can purchase a new or existing home or build a home. It can be a house, townhouse, unit or villa. If you’re purchasing land, it must include the construction of a new build.
Interest only repayments are only considered for construction loans, otherwise the repayment type must be principal and interest or your initial application7.
No, the purpose of the loan must be for owner occupier.
Our Basic Variable and Offset Variable Home Loans are available for extended loan terms. The repayment type needs to be either principal and interest or construction interest only6,7.
Yes, you can. Our extended loan term offer is available in terms of up to 40 years. You have the flexibility to choose a term option that suits you best.
While a longer loan term will provide the benefit of lower monthly repayments, it does mean you pay more interest in total due to the longer duration of the loan.
Absolutely! And we have a number of clever ways to help you do so. You can make unlimited extra repayments to our variable home loans free of charge. There is also no early repayment fee on variable loans. Check out the ‘Ways to pay off your loan sooner‘ section above for even more options.
Speak to one of our Home Loan Specialists or brokers if you are wanting to internally refinance your existing Great Southern Bank extended loan term home loan. External refinances to Great Southern Bank are not accepted.
Complete the form and we’ll connect you with one of our experienced Home Loan Specialists.
Mon - Fri: 9:30am - 4:00pm (AEST)
Rates are current as at 22 May 2026 and subject to change.
Great Southern Bank, a business name of Credit Union Australia Ltd ABN 44 087 650 959, AFSL and Australian Credit Licence 238317.
^Comparison rate accurate for $150,000 secured loan over 25 years. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.
*Interest rates are higher for loan terms exceeding 30 years. All home loan rates can be found here.
1 Discounts off the Basic Variable and Offset Variable Reference Rate are available to (a) new home loans with a minimum application amount of $100,000; or (b) switching or restructuring of the home loan you already have with us when it includes new borrowing of at least $10,000; and the application is unconditionally approved on or after 22 May 2026. Published interest rates are inclusive of any discounts off the respective Reference Rates. Interest rates and discounts vary based on the loan purpose (owner occupier or investor), repayment type (principal and interest, interest only, construction) and Loan to Value Ratio (LVR). Maximum LVR applies and includes Lenders' Mortgage Insurance and Great Southern Bank loan setup fees where applicable. A change in your loan purpose, your repayment type or your loan product will permanently end your entitlement to the discount.
2 Extended Loan Term is available for eligible applications from 31 July 2025. Lending criteria, limits, conditions, fees and exclusions apply. Applications are subject to credit approval. Offer current as at 31 July 2025 and is subject to change or withdrawal without notice.
3 LVR means ‘Loan to Value Ratio’. It is the amount of your loan divided by the valuation of your property, calculated as a percentage. For example, if you apply for a loan of $400,000, which will be secured by a property valued at $500,000, your LVR is 80%. We calculate your LVR at the time we approve your loan and your discount won’t change because of changes to the LVR during the life of your loan.
4 A $200 minimum withdrawal amount applies for redraws conducted in-branch.
5 You must maintain a minimum balance of $500 in each offset account to obtain an offset benefit. You will also not receive any interest on the funds in your offset accounts.
6 Principal and Interest loans are not available for construction purposes.
7 For Construction loans, payments are made on an interest only basis for the first 12 months. After 12 months, the loan will revert to the Basic Variable Principal & Interest Owner Occupier or Investor Reference Rate (as applicable) which applies at the time of expiry, less any discount set out in the loan contract.
To view the Target Market Determination for this product, please click here.