24 Mar 2022

How Do I Calculate Mortgage Weekly Repayments?

Weekly Repayments and Mortgages

The conventional mortgage is the original mortgage type. Plus, monthly repayments remain the most common frequency. As home prices in Australia went higher, lenders realised that fewer Australians qualified for conventional mortgages. Their solution became to bring to the market variations of the home loan such as low doc, interest-only, and owner-builder. In addition, lenders developed tools and accounts to help homeowners chip away at their mortgages faster. For example, homeowners can opt for weekly repayments. 

Calculating weekly repayments requires a few steps. Otherwise, homebuyers and owners can use the calculators that Mortgage House provides to clients for free and online. 

Let’s look at the math by using a mortgage example. A mortgage of $500,000, 3% interest rate, and 30-year length nets a monthly repayment of $2,100. Dividing by four is one way to figure out the weekly repayment amount. However, it’s not completely accurate. Dividing by four gives a repayment of $525, a good estimate. However, the true repayment is lower at $486. The repayment is a lower amount since the homeowner is chipping away at the principal amount faster. 

It’s possible to calculate the repayments through simple mathematical steps. However, this method only renders an estimate. A calculator takes into account compounding and capitalising on home loan interest rates, which requires a few extra steps.  

Weekly Repayments and Mortgages Conclusion

To calculate your potential mortgage weekly repayments, you can use our online calculator resources. To obtain a deeper look into repayments, contact our Mortgage House loan specialists today.

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