Loan Repayment Calculator

💰 How Do Home Loan Repayments Work?

Your home loan repayments usually have two parts:

• Principal 🏠: The amount of money you borrow.
• Interest 💸: The cost you pay the lender to borrow that money.

You can choose between:

• Principal & Interest: You pay both the loan and interest together.
• Interest Only: You only pay the interest for a set time, like 5 years.

🧮 How to Calculate Your Home Loan Repayments

There are a few things that affect your repayments. To use our repayment calculator, you’ll need to know:

• Loan Amount: How much you’re borrowing
• Loan Term: How many years you’ll take to repay
• Interest Rate: Fixed or variable
• Repayment Type: Principal & Interest or Interest Only
• Loan Product: The type of loan that fits your needs
• Extra Repayments: Any extra payments you plan to make

⚠️ Interest rates can change. If you have a variable rate, your repayments may go up or down. If you have a fixed rate, your repayments stay the same during the fixed term, but may change after.

Our calculator gives an estimate and may not include all fees or rates.

❓ FAQs

💡 What costs are in a mortgage payment?

Your payment usually includes the principal and interest. You might also have extra costs like Lenders Mortgage Insurance (LMI) if your deposit is under 20%.

📈 Can your loan repayments go up?

Yes. If interest rates go up on a variable loan, so will your repayments. Also, if you move from an interest-only loan to a principal & interest loan, your payments will increase.

🔁 What’s the difference between ‘Principal & Interest’ and ‘Interest Only’?

• Principal & Interest: You pay off the loan and interest over time.
• Interest Only: You only pay interest for a short time (e.g. 5 years), then switch to principal & interest.

💰 How much deposit do you need?

You need at least a 10% deposit. To avoid paying LMI, you usually need a 20% deposit.

📊 What is a comparison rate?

A comparison rate shows the true cost of a loan. It includes the interest rate plus fees and charges, making it easier to compare loans.

🔀 Can you have both fixed and variable rates?

Yes. You can split your home loan. One part can have a fixed rate for stability, and the other part can have a variable rate so you can benefit from any rate cuts and make extra payments.

📉 What happens when interest rates rise?

If you have a variable rate, your repayments will go up. If you have a fixed rate, your repayments won’t change during the fixed period. After that, they may increase or decrease.

🧠 How is interest calculated?

Interest is the cost of borrowing. It’s based on the amount you still owe each month. For example:

If you borrow $100,000 at 4.01% interest, you pay about $4.01 a year for every $100 you owe. As you pay off your loan, you owe less, so your interest also goes down.

🚀 How can you pay off your loan sooner?

Try these tips:

• Make extra repayments 💵
• Pay fortnightly instead of monthly 📅
• Use tax refunds or bonuses as lump-sum payments 💰
• Use an offset account to reduce interest 🏦

These tricks can help cut down your interest and shorten the life of your loan!