Home Loan Repayment Calculator
It is always a good idea to plan for your home loan repayments and ensure that you can comfortably make them. Find out what your minimum weekly, monthly and fortnightly repayments will be for any borrowed amount.
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Looking to Pay Your Home Loan Off Faster?
For a free confidential assessment of which mortgage management strategy will help you pay off your mortgage faster and is suitable for your unique situation, talk to an experienced mortgage broker. Simply email the form below or call us on 13 94 62 (or +61 2 9249 3739).
Top 5 Tips For Paying Your Home Loan Off Faster
Tip 1: Get a home loan with a flexible payment structure
Before you sign on your home loan, find out if you can make increased regular payments and lump sum repayments without incurring a penalty. Also be aware that these extra features will incur additional costs. Get a good mortgage broker to weigh up the pros and cons on your behalf.
Tip 2: Make extra repayments as early as possible
Most people don’t realise that the majority of the payments made at the beginning of a home loan actually go towards paying off interest and not reducing the principal. Therefore any extra payments that you make from the very beginning go towards reducing your principal and minimising interest payments down the track.
Tip 3: Make your first mortgage payment on settlement date
This is yet another excellent example of how making early payments can reduce your principal and future interest repayments.
Tip 4: Make more frequent repayments
Where interest is calculated on a daily basis, making payments on a more frequent basis whether fortnightly or weekly serves to cut down on your interest payments
For example, making fortnightly repayments means that you’ll be making 13 monthly repayments each year, thereby reducing the principal and term of your loan.
Tip 5: Paying income directly into your home loan
As interest is calculated daily, getting your salary direct to your home loan account effectively reduces the principal you owe from the moment your salary is in the account, this is in turn reduces the interest.
Calculator Assumptions
Length of Month
All months are assumed to be of equal length. In reality, many loans accrue on a daily basis leading to a varying number of days’ interest dependent on the number of days in the particular month.
Number of Weeks & Fortnights in a Year
One year is assumed to contain exactly 52 weeks or 26 fortnights. This implicitly assumes that a year has 364 days rather than the actual 365 or 366.
Rounding of Amount of Each Repayment
In practice, repayments are rounded to at least the nearer cent. However the calculator uses the unrounded repayment to derive the amount of interest payable at points along the graph and in total over the full term of the loan. This assumption allows for a smooth graph and equal repayment amounts.
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More information and home loan help
For more information on how and where to find a better home loan deal from an extensive panel of Australian banks and secure mortgage lenders, or to speak to your local area mortgage expert, contact us on 13 94 62 (direct +61 2 9249 3739)
