Loan Repayment Calculator

 

Find out how much your home loan repayments could be before you start borrowing. Our calculator can help you to budget for your dream home.

Loan Repayment Calculator

Before you take out a loan, you should know about the repayments that you will be expected to pay. Not only should you know about what your monthly repayments will be, but you should also consider the overall cost of the loan. Our loan repayment calculator can tell you about the amount of interest that you will repay over the term of the loan and show you how much of your payments are the principal and how much is interest.

Looking at our loan repayment calculator will also allow you to look at how much you can repay in a certain amount of time. It will enable you to see how much equity you will have in a few years’ time, whether that’s when you want to sell up and move on or you just want to know how much closer you are to owning your home outright.

How your home loan repayments work depends on the type of loan. With an interest and principal loan, the repayment consists of two parts. Part of the repayment is the principal, which repays the amount you have borrowed. The other part is the interest on the loan.

If you choose an interest-only loan, you only pay the interest on the amount you borrowed. This can mean that your payments are lower at first, but they become more expensive after the initial term of the loan comes to an end.

Interest rates are used to calculate payments based on the unpaid daily balance of your loan. The interest amount is usually calculated daily and then paid monthly, but repayments can be fortnightly or weekly too. As you make repayments towards your loan’s principal, there will be less interest to pay.

Using the home loan repayment calculator is simple. Start by entering how much you want to borrow and the term of the loan. If you’re not sure how much you’ll be able to borrow, try using our borrowing power calculator to get an idea of your borrowing capacity.

The next step is to put in an interest rate. You can leave the default interest rate as it is or explore some loan options to see what kinds of deals you could get. It’s helpful to know what sort of interest rates are available to you so you can get a realistic picture of what your repayment amount could be. You can get started with our team if you want to know more about what loans you could access.

Finally, choose the repayment frequency and the repayment type. You will get the amount that your repayments will be (weekly, fortnightly, or monthly), the total payable interest over the whole loan term, and a graph showing the balance of the loan over time. The calculator gives you an indication of what you could pay, but you should still get official quotes to find out about the loans that are available to you.

Your repayment amount will depend on a number of factors. The loan amount will naturally make a difference to how much you have to repay, the interest owed, and therefore the repayments. The loan term will also affect your repayments. If you extend the term of the loan, you will end up paying more in interest overall but your individual payments will be lower.

The interest rate will affect your repayments too, and there’s a chance it can change. Although you can choose a fixed rate for a number of years, a variable interest rate means that it can go down or (more likely) up.

Your repayment frequency can also influence how much you repay. You might pay slightly less in interest overall if you make fortnightly or weekly payments instead of monthly payments. However, the difference is unlikely to be a significant amount over the term of the loan.

When considering a home loan, one of the most important things to consider is what will happen if your interest rate goes up. If your loan has a variable interest rate, the rate could rise and so your repayments could become more expensive. Lenders want to know that if the interest rate does rise, you will still be able to make repayments. It’s also essential for you to consider this when you are working out the affordability of a loan. If your home loan repayments become unaffordable, you could be at risk of eventually losing your home.

That’s why a repayment calculator is so useful. You can use it to test different scenarios without any risk, giving you an idea of what might happen if interest rates go up in the future. You can consider whether you would be ready for the increased cost and how to prepare.

Some people consider overpaying their loan so that they can pay it off faster. Of course, you could choose a shorter loan term, but overpaying on your loan can give you more flexibility. Before you start making additional payments, it’s always important to see what your lender says about overpayments and paying off your home loan early.

You can typically make either one-off payments or recurring payments if you want to overpay on your home loan. There is often a limit on extra repayments before additional fees apply, so it’s often sensible to stay under this limit.

Overpaying your loan not only means that you could pay it off quicker, but you could also save money on interest by getting it paid sooner.

The calculator should help to give you an idea of how much your loan repayments could be. Now that you know, what should your next steps be? If you haven’t already used it, try our borrowing power calculator to see how much you could potentially borrow. You can also use our stamp duty calculator to get an idea of the full costs of buying a property.

If you’re ready to find out more about getting a home loan, why not get started with us online or give us a call for a chat?

What makes a difference to repayment amounts?

You can find that there are multiple factors that affect the cost of your home loan repayments. Just try out our calculator, and you can see how the loan amount, term, interest rate, and type of repayment all change the amount that you might be repaying and the overall interest you pay.

How is an interest-only loan different?

You can choose between principal and interest repayments or interest-only repayments. These dictate how you repay the loan and influence how much you pay back overall. When your payments consist of the principal and the interest, you’re repaying the amount that you borrowed, plus the interest on the remaining balance. An interest-only loan means that you are only paying the interest on the loan for a set period. This means lower payments but you’ll pay more interest over the whole term of the loan. So it’s important to think carefully before deciding if it’s the right option for you.

What’s the difference between a fixed-rate and variable loan?

Most people choose to start with a fixed-rate loan when they buy a property. Fixed-rate loans allow you to pay the same interest rate for several years (usually one to five years). This gives you the safety of knowing what you’re going to pay without the risk of your interest rate going up. However, it also means you won’t benefit if interest rates happen to go down. After the fixed-rate period is over, you will automatically be put on a variable rate but you can look for a new fixed-rate deal. If you’re going to be on a variable rate, be sure to consider the affordability of repayments if the interest rate rises.

Can I pay off a home loan faster?

If you want to pay off a home loan before the full term is over, you can usually make overpayments in the form of regular payments or lump sums. The most important thing is that you check the terms of the loan before you do so. You need to be aware of any limits and any fees that could apply. You can make some excellent cost savings by making additional payments thanks to the saved interest. However, that can be disrupted if you have to pay extra fees because you overpaid too much.

What other costs are there to consider?

It’s sensible to be aware of the other costs involved in buying a home when you’re looking at loan repayment costs. You may need to pay stamp duty on the property, for example. In terms of the loan itself, there can be several costs associated with it. These may include a lending establishment fee, a document processing fee, a property valuer fee, and mortgage insurance. Other costs could include building inspections, stamp duty, solicitor or conveyancer costs, government fees, and insurance.

Home Loan Repayment Calculator

A loan repayment calculator is a free tool that allows you to estimate what your repayments would be on a home loan. Payments will change depending on a multitude of factors such as whether it is an investment property or if you’re an owner-occupier. Interest rates frequently change so keep this in mind if you have a variable rate home loan.

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