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Variable | More details | ||||||||||||
FEATURED | loans.com.au – Variable Home Loan 90 P&I
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loans.com.au – Variable Home Loan 90 P&I
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Variable | More details | ||||||||||||
HSBC – Home Value Loan - Owner Occupied (LVR 70% to 80%)
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HSBC – Home Value Loan - Owner Occupied (LVR 70% to 80%)
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Fixed | More details | ||||||||||||
Newcastle Permanent – Fixed Rate Home Loan (1 year)
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Newcastle Permanent – Fixed Rate Home Loan (1 year)
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Variable | N/A | More details | |||||||||||
Beyond Bank – Purple Basic Variable Home Loan (<80% LVR)
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Beyond Bank – Purple Basic Variable Home Loan (<80% LVR)
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Variable | More details | ||||||||||||
Athena Home Loans – Straight Up Owner Occupier (Principal & Interest) - Liberate (LVR70%-80%)
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Athena Home Loans – Straight Up Owner Occupier (Principal & Interest) - Liberate (LVR70%-80%)
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Fixed | More details | ||||||||||||
IMB Bank – IMB Fixed Rate Home Loan (1 year)
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IMB Bank – IMB Fixed Rate Home Loan (1 year)
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Variable | More details | ||||||||||||
Liberty Financial – Liberty Financial Flexible Home Loan LVR >95% (Owner Occupier)
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Liberty Financial – Liberty Financial Flexible Home Loan LVR >95% (Owner Occupier)
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Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of November 8, 2024. View disclaimer.
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Calculator Assumptions: Repayment Frequency Calculator
The figures provided should be used as an estimate only, should not be relied on as true indication of your home loan repayments, or a quote or indication of pre-qualification for any home loan product. The figures are based upon the information you put into the calculator. We have made a number of assumptions when producing the calculations including:
if added, your extra repayment is taken to be made at the same time as your monthly repayment.
The cost of your home loan repayments will vary depending on factors such as the length of your loan term, how frequently you make your payments, and the repayment type. A longer loan term generally means that your monthly payment would be lower but will result in a higher total loan cost, as you will be paying interest for a longer period of time. A shorter loan term means a higher repayment but a lower total loan cost, as you will be paying interest over a shorter time period.
When it comes to choosing how frequently you will pay back your loan, a weekly or fortnightly repayment can give you the benefit of saving money in interest because the interest is calculated daily and charged at the end of each month. Therefore, the more frequently you pay down the principal of the loan, the more money you save in interest over the life of your loan.
Here is a breakdown of how your loan repayment can differ depending on the frequency of your rep
$400,000 loan w/ 2.50% interest rate | Monthly | Fortnightly | Weekly |
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Minimum Repayment | $1,580.48 | $790.24 | $395.12 |
Total Interest Paid | $168,975 | $148,362 | $148,230 |
Total Interest Paid | $168,975 | $148,362 | $148,230 |
Interest Saved | $0.00 | $20,613 | $20,745 |
Approximate Loan Term Saved | 0 years, 0 month | 3 years, 8 months | 3 years, 8 months |
*Note, all information in this table is indicative and for demonstrative purposes only
The reason why paying your loan fortnightly or weekly can end up saving you a lot of money in interest, compared to paying monthly, is because in a calendar year there is only 12 monthly repayments, but 26 fortnightly repayments and 52 weekly repayments. If you are paying fortnightly or weekly, you would be paying the equivalent of 13 monthly repayments per calendar year. It is also important to remember that interest is calculated daily and charged monthly, meaning the more deposits you make to your loan, the more days your loan will have a lesser interest charged.
The most common repayment frequency is monthly, especially as this is the default home loan repayments quoted by lenders. Making regular repayments on the loan and paying more than the monthly minimum can make a difference to the interest charged on your loan and doing so can help you pay off your mortgage faster.
Most lenders will allow you to change your repayment frequency to suit your pay schedule. Having more regular loan repayment frequency can be a good way to get in an extra repayment on your mortgage, especially if you pay on a fortnightly basis.
However, the amount you pay on your loan should remain the same overall, depending on the minimum loan repayment amount listed in your loan contract. Some lenders will calculate your fortnightly repayment by dividing the monthly repayment listed in your loan contract by two, or dividing your weekly repayment by four. However other lenders may multiply your minimum monthly loan repayment by 12 to obtain the annual amount, then divide by 26 to calculate your fortnightly repayments, or divide by 52 to calculate your weekly repayments. It is important to check how your lender calculates your repayments to ensure you are maximising your savings with your preferred repayment frequency.
The interest rate type will have an impact on your loan repayment, but in regards to your loan repayment frequency, it is best to check with your home loan provider because some fixed rate products do not allow extra lump sum repayments. Some lenders will allow you to make fortnightly or weekly repayments on a fixed loan, while others will not.
Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to made on variables as selected and input by the user. All products will list the LVR with the product and rate which are clearly published on the Product Provider’s web site. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. Rates correct as of 9 October 2024.
^The addition of offset sub-account means your comparison rate will change.
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Savings.com.au Pty Ltd ACN 161 358 363 | Australian Financial Services Licence and Australian Credit Licence 515843