How does a mortgage calculator help you?
Taking out a home loan is an important step in the home buying process and your loan repayments will be one of your biggest living costs once you do by a home. So, it's important to budget accordingly.
We’re here to help you make an informed decision for your next home loan, and encourage you to use our mortgage calculator to compare different home loan options and calculate potential repayments.
Once you get an idea of your mortgage repayments you'll know what property price range you can realistically afford.
Our calculator can also help you understand how different factors like changing interest rates, additional repayments and the frequency at which you make your repayments can impact the interest owed.
For example, lower interest rates, making additional repayments, and paying your mortgage off fortnightly, or even weekly rather than monthly can all help reduce the cost of the loan over time.
By using our mortgage calculator, you'll be able to compare different buying scenarios and avoid falling into the trap of buying a house you can't afford, as well as manage your future repayments better.
So what's next? Now that you've estimated your repayments, see how much you can borrow with our borrowing power calculator.
With an interest-only loan, you only pay the interest on the amount you have borrowed.
These interest-only loans are for a set period (for example, five years) after which the loan changes to a principal & interest loan.
For example, if you take out a $100,000 loan, your principal starts at $100,000. If your loan has a 4.01 per cent interest rate, you're paying $4.01 cents annually for every $100 you owe. Because your balance usually decreases over the course of the year, however, you won't pay 4.01 per cent of $100,000, but a slightly smaller amount. That's because interest is calculated based on the balance each month.
In addition, many home loans come with product features like offset sub-accounts that help reduce your interest paid, allowing you to pay down more of your principal and take years off your home loan.