Our calculator simplifies the process of calculating your home loan repayments.
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This calculator allows you to calculate your home loan repayments based on various loan sizes, interest rates, loan terms, and repayment options.
To find out your mortgage repayment, simply put the following information into the calculator, and you will get the result.
The formula for calculating monthly mortgage repayments is:
M = P * [r * (1 + r)^n] / [(1 + r)^n – 1],
where M is the monthly repayment amount, P is the principal (loan amount), r is the monthly interest rate (annual interest rate divided by 12), and n is the total number of monthly payments (loan term in years multiplied by 12).
A good starting point is to check the rates the lenders of your choice offer. Visit their websites to find their standard variable rate, which serves as a baseline for estimating your repayments.
Additionally, consider using the comparison rate, which includes fees and charges, for a more accurate picture of your monthly payments.
Assessing your ability to afford the loan involves more than just the variable rate. Lenders often apply a buffer rate to calculate your borrowing power. This buffer acts as a safety net, allowing for potential future rate increases and ensuring you can still comfortably manage repayments. By factoring in this buffer, both you and the lender are better protected against unexpected financial challenges.
Most mortgages in Australia are for a 30-year term. However, you can choose any term you like up to 40 years, which is the maximum term offered in Australia. Be aware that the shorter your term, the higher your repayments, but also the faster you pay off the loan, the less interest you will ultimately pay.
Making extra mortgage repayments can have a huge impact on your financial future by reducing your total interest paid and shortening your loan term. By paying more than the minimum required amount, you directly reduce the principal balance on your loan, which decreases the total interest you’ll pay over the life of the loan.
To see the potential benefits for yourself, try using our Extra Repayments Calculator. This allows you to input your mortgage details and explore how making additional repayments can affect your loan term and overall savings. Simply input your current mortgage balance, interest rate, desired extra repayment amount, and when you’ll start contributing to it, and the calculator will provide you with valuable insights into your financial future.
Now that you’ve calculated your repayments, explore ways to reduce your interest and pay off your loan faster with our expert tips and resources.
Estimate Your Home Loan Repayments
Get an accurate estimate of what your monthly repayments will be based on different loan amounts, interest rates, and terms.
Understand Borrowing Power
Assess how much you can borrow based on your income, expenses, and financial situation, helping you know your budget before house hunting.
Compare Loan Options
Compare different mortgage products, interest rates, and repayment terms to find the best fit for your needs and goals.
Calculate Stamp Duty & Additional Costs
Use our calculators to determine the stamp duty and other associated costs with purchasing a home, so you can plan your budget effectively.
Plan for Extra Repayments
Find out how making additional repayments can help you pay off your mortgage faster and save on interest.
Check the Impact of Interest Rate Changes
See how interest rate fluctuations may affect your mortgage repayments over time, giving you a clearer picture of your long-term financial commitments.
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