Extra Repayment Calculator
Find out how making extra repayments on your home loan can shave years off your loan and save you thousands with our extra repayment calculator.
Benefits of making extra repayments on your home loan
Paying extra on your home loan can help you become debt free sooner and save interest over the life of the loan. With a home loan, the repayments are initially calculated with the majority of your repayment goes to servicing the interest payable. Over time this interest decreases and the principal repayment increases rapidly decreasing your loan balance. By making additional extra repayments you can increase this repayment in your debt, creating a compounding saving which can take years off your loan term and save you thousands of dollars in interest. Here’s some tips on how to make the most when making extra repayments on your home loans:
- Calculate how much extra cash flow you have available each pay cycle and commit to a set amount being paid onto the home loan
- Don’t set your extra repayment too high that you can’t be consistent, its better to make a consistent extra repayment repayment amount than an additional repayment which isn’t sustainable
- If you struggle to remember to make your extra repayments each time, you can ask your lender to update your repayment from the minimum amount to a higher amount automatically
Do you need assistance with calculating how much extra you should pay off your mortgage to achieve your goals? Speak with a broker today.
Disclaimer: The calculations do not take into account all fees and charges. The results provided by this calculator are an estimate only, and should not be relied on for the purpose of making a decision in relation to a loan. Interest rates and other costs can change over time, affecting the total cost of the loan. Borrowers should consider discussing their individual situation with a qualified Australian Credit Licensee or authorised Credit Representative.