Extra Home Loan Repayment Calculator
How much can I save with extra home loan
Regularly making extra repayments towards your mortgage can potentially save you thousands of dollars in interest and shave years off the life of your home loan.
Whether you have a fixed, variable or introductory rate loan, the InfoChoice Extra Repayment Calculator shows you how much you could put back in your wallet in the long term by making extra repayments. Simply enter the amount of the repayment, how often you’ll be paying it, and when the repayment schedule will start.
Remember, the more you repay and the more frequently you make repayments, the bigger the potential savings.
Frequently Asked Questions
Extra repayments will reduce the amount of money you owe on your loan and thereby reduce the amount of interest charged. That means you may be able to repay your loan off faster and you could potentially save significant amounts of cash over the life of the loan.
It can be a good strategy to pay a lump sum into your mortgage to reduce the principal amount owed and therefore the interest charged. However there are a number of factors to consider. You may have other debts attracting a higher interest rate which could be paid off. Your mortgage may or may not have redraw or an offset account attached so your lump sum will not be available for future use. This is a question best answered by a financial adviser who knows your personal situation.
There are plenty of ways to pay off your mortgage quicker including increasing the frequency of repayments, making extra repayments, refinancing to a cheaper loan, putting your savings into a mortgage offset account and more. Do a home loan health check yearly to ensure your loan still suits you and steer clear of interest-only loans if you want to pay off a mortgage quickly.