Calculate Home Repayments
What is home loan repayment?
An important key in working out how to calculate home loan repayments is to understand how a home loan works, and how an interest rate and loan type can influence weekly, fortnightly or monthly repayments. Mortgage House offers a range of home loan product alternatives to help you find a suitable option for you and your family. They include:
- First Home Buyer. If you’re buying a home for the first time, Mortgage House can help you find a suitable home loan that can take the stress out of the process.
- Second Home Buyer. If you’re buying a home for the second, third or even fourth time, there may be ways to take advantage of the equity in your current home to help your financial situation.
- Investor. Investing in property means getting all your ducks in a row, including understanding how to calculate home loan repayments. Finding a suitable mortgage with home loan repayments that suit your budget is important.
- Refinancer. You may love your current home loan product and giving it a health check can be worthwhile. You may discover more suitable terms and conditions, interest rates or extra features.
- Construction. If you’re building instead of buying a home, understanding how to calculate home loan repayments can help your budgeting. A suitable Construction mortgage can make things easier when you need it most.
- Relocation. A Relocation mortgage can be a different, yet suitable, option if you’re moving or relocating your home.
- Self Employed. If you’re self-employed, a sub-contractor or a freelancer, having all the right documents can be tricky, as can making sure you’re across how to calculate home loan repayments each month. This kind of home loan can help.
Different home loans can impact differently on the amount of repayments you’re required to make each week, fortnight or month. Home loan repayments are the minimum amount a bank or lender requires you to pay back regularly over the loan term. Home loan repayments can be made up of both the principal amount you borrow, and the interest, which is the amount the bank or lender will charge you to provide you with the mortgage and all the services that come with it. There are two interest rate types:
- Variable. A variable interest rate is one that can increase or decrease over the loan term, impacting your home loan repayments. There are a range of internal and external variables that will affect the interest rate level.
- Fixed. With a fixed interest rate, your interest rate, and therefore the home loan repayments, will stay the same over the agreed period, which is usually between 1 and 5 years. Fixed interest rates make it easy to work out how to calculate home loan repayments.
How to calculate home loan repayment?
One of the key parts of understanding how to calculate home loan repayments is working out which kind of repayment is suitable. There are two kinds with Australian loans:
- Principal and interest. With principal and interest repayments you pay back both the principal amount and the interest charged, over the loan term. The repayment amount can vary if you have a variable interest rate home loan.
- Interest-Only. With an interest-only repayment you only pay back the interest charged by the bank or lender. Interest-only periods can usually be up to 10 years.
Another important part of understanding how to calculate home loan repayments is the loan amount. One of the great things about the modern mortgage market is you can get an idea of how much a bank or lender may lend you, based on a range of factors about your financial situation. A Borrowing Calculator can give you the information you’re looking for. Fill in the required details as accurately as you can, and you’ll discover your borrowing power. It’s not pre or conditional approval, but it can give you a good indication and help narrow down, or increase, your property search.
Important Disclaimer: This is intended as a guide only. Details of terms and conditions, interest rates, fees and charges are available upon application. Mortgage House's prevailing credit criteria apply. We recommend you seek independent legal and financial advice before proceeding with any loan. The Comparison Rate for each of the home loan products contained in this page is based on a loan of $150,000 over a 25 year term. Fees and charges may be payable.
WARNING: The 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. * This mortgage calculator shows indicative repayments based on 12/26/52 equal repayments for monthly/fortnightly/weekly options.
Can I repay my home loan early?
A common question we are asked when people are curious about how to calculate home loan repayments is can they pay their mortgage off sooner and, if so, how? Mortgage House has a range of home loans that include features that make it easier to pay off your home loan sooner. We know you can save thousands of dollars over the loan term by using features such as:
- Additional repayments. This one may sound obvious but being able to make additional repayments can mean fees and charges apply to some loans. Choose for our range where it doesn’t.
- Redraw. If you like the idea of additional repayments but aren’t sure if your budget can handle it each month, then the redraw feature can help. With redraw, you can withdraw any extra repayments or lump sum payments you have made, at any time and for any reason.
Add extra repayments or lump sum payments below to our Australian Mortgage Repayment Calculator to see the difference it can make. Using the calculator below to change your loan term can be the equivalent of making additional repayments, as they can shorten your loan term. Compare the difference in the total interest amount to see how much you may be able to save.
Another key part of discovering how to calculate home loan repayments and whether you can pay your mortgage off sooner is having a good understanding of your budget. If you think you may be able to make additional repayments, then using our Budgeting Calculator can help. This resource puts your full financial situation in an easy-to-understand table and helps you work out whether or not you think you can afford to make additional repayments, and maybe even how often.
Best Interest Rate Calculator
Important Disclaimer: This information is intended as a guide only. The calculation of fortnightly and weekly instalments varies with the specific loan product. Higher loan repayments will be required on principal and interest loans where the instalment calculation is based on half the monthly payment for a fortnightly payment or a quarter of the monthly payment for a weekly payment. Details of terms and conditions, interest rates, fees and charges are available upon application. Mortgage House's prevailing credit criteria apply. We recommend you seek independent legal and financial advice before proceeding with any loan.
What will my home loan repayments be?
A Mortgage Repayment Calculator can give you all the information you’ll need when working out how to calculate home loan repayments, and it will do it in a way that makes sense and is easy to understand. Once you have found a loan type and kind you think may be suitable, simply enter the relevant information into the calculator below. Not only will you be able to discover what your repayments may be, but you’ll also find out how much overall interest you will pay over the loan term. If you have chosen principal and interest repayments a Mortgage Repayment Calculator will show you how much of each repayment will be made up of both. You’ll notice at the start, your home loan repayments will be made up mostly of interest, something that will decrease over the loan term. That’s a way a bank or lender can manage risk, in case you default on your home loan.
Product Repayment Calculator
Important Disclaimer: This is intended as a guide only. Details of terms and conditions, interest rates, fees and charges are available upon application. Mortgage House’s prevailing credit criteria apply. Please note that your actual fortnightly repayment would be equal to the monthly repayment amount divided by two. Weekly repayments would equal the monthly repayment amount divided by four. If you choose to pay fortnightly or weekly, your actual repayments will be higher than repayments shown on this page. You can reduce the term of your loan if you choose to make repayments fortnightly or weekly. We recommend you seek independent legal and financial advice before proceeding with any loan.