Home loan repayment calculator

Get into your home sooner with the help of MyBudget.

First home, new home, next home or investment property—save money and time with a personalised budget and expert help.

Home Loan Repayment Calculator | Mortgage Calculator

1.What is a home loan repayments calculator?

When you buy a house, you typically borrow money from a bank or other financial institution. This type of borrowing is called a mortgage. Mortgages come in two loan repayment types : fixed rate mortgages and variable rate mortgages.

Fixed rate mortgages

offer a set interest rate for a certain period of time and are usually the best option if you plan to stay put for a while. Fixed rates can be good because they offer stability and security. However, fixed rates also have drawbacks. For example, if interest rates go up, your monthly payment will increase as well. If interest rates drop, your payments may decrease.

Variable Rate Mortgages (VRM),Variable Home Loans And Variable Rate Loans

Refer to the same product. The bank will offer a variable interest rate based on changes in the prime lending rate.

There are several factors that go into determining how much you can borrow and loan rates. These include your income, credit score, down payment amount, property value, and location.

Home Loan Calculator

To estimate how much you can borrow and determine your monthly payments, you can use a home loan calculator. You can enter your personal details and see how much you can borrow based on those figures.

Once you've entered your personal details, you can select either a fixed rate or variable rate home loan. Then, you can input the length of the loan, the interest rate, and the total cost of the loan. The tool will show you how much you can afford to spend per month and how long it will take to pay off the loan.

2.Importance of understanding home loan repayment fees

When you apply for a mortgage, you'll be asked to estimate how much you think you'll spend on monthly repayments. This is called calculating your home loan repayment cost.

However, lenders often add additional fees to your home loan. These include application fees, valuation fees, legal fees, stamp duty, government charges and other miscellaneous charges.

These fees vary depending on the type of loan you've applied for. Some loans come with higher fees than others, each loan application is different.

So, even though you calculate your home loan repayment cost correctly, you might end up paying more than expected, depending on your lending criteria.

To avoid this, always check the fees associated with your loan. Also, understand that lenders sometimes change their rates without notice.

3.Tips for Using a Home Loan Calculator: The Importance of Comparing Multiple Loan Offers

Before you decide on a loan, you should compare the loan offers from at least two different banks. Consider shorter loan term offers, making extra loan repayments, split loans, owner occupier loan terms and secured loans by getting advice from a loan specialist about the implications of each.

Doing so will give you a better understanding of the costs associated with borrowing money.

Lenders often try to entice borrowers with low-interest rates. However, they also add other costs to the loan. For example, they might tack on additional points or higher closing costs.

So, it pays to shop around for the best loan contract. Compare multiple loan offers to ensure you get the best deal. Get professional advice from a loan expert to get the best rate term and ensure you secure fortnightly repayments you can afford based on your credit criteria and conditional approval factors.

Consideration of additional costs such as property taxes and homeowners insurance

When considering a mortgage, you need to consider other costs besides just the current interest rate. These include stamp duty, government fees, the loan type, the rate period, repayment type, property taxes, council rates, your financial circumstances, loan options, bank fees, rental income, your cash flow and homeowners insurance.

Stamp Duty

Stamp duty is the tax you have to pay on the property you purchase. The amount depends on where you live. In Australia, stamp duty ranges from 0% to 15%.

Property Taxes

Property taxes vary depending on where you live. Property taxes range anywhere from $0-$3000 per month.

Homeowners Insurance

Homeowners insurance covers damages done to your house due to natural disasters, fire, theft, vandalism, etc. Homeowners insurance varies based on location, but typically starts around $100-$300 per month.

These three costs add up quickly, especially if you buy a larger property. So, it's important to calculate the total cost of owning a home before deciding to buy.

4.Other factors that affect home loan repayment

There are other factors that impact home loan repayment besides credit score and income level. These include interest rate, down payment amount, property type, and term length.

Interest rate

affects monthly mortgage payments. The higher the interest rate, the higher the monthly payments.

Down payment amount

impacts monthly mortgage payments. The larger the down payment, the less expensive the monthly loan repayments.

Property type

influences monthly mortgage payments. For example, buying a house versus renting means paying more for rent.

Term length

determines how long you'll own the property. Longer-term loans mean higher monthly payments.

Impact of making extra payments or refinancing

Making additional repayments or refinancing can save you money over the life of the loan. This is especially true if you've made large down payments, lump sum repayments or paid off high interest rates early.

Refinancing to Offset Home Loan

Refinancing allows you to refinance your existing loan to another lender with better terms. Refinancing can save you thousands of dollars in interest charges over the life of the original loan. Internal refinances mean that you're not borrowing any new funds. External refinances involve taking out a new loan.

However, refinancing comes with its own set of risks. You'll lose access to your current equity and possibly incur fees.

For example, if you refinance your loan to a 30-year fixed-rate loan, you'll lose access to your initial 20% down payment. That means you'll have to come up with the remaining 80%.

And if you refinance to a 15-year variable loan rate, you may end up paying more in interest charges than you saved in closing costs.

In addition, refinancing incurs additional fees. Some lenders require borrowers to pay points, origination fees, and application fees.

These fees can add hundreds of dollars to your upfront home loan costs. So, weigh the pros and cons before deciding to refinance.

5.Your Home Loan Journey

Calculating how much money you will spend over the course of owning a home vs. renting is one of the most important decisions you'll make. You'll need to consider many different variables including interest rates, down payments, property taxes, maintenance fees, insurance costs, etc. If you don't know where to start, here are some tips to help you calculate how much it will cost to rent vs. purchase a home.

5.1. Determine How Much Money You Can Spend Each Month

The first step is to determine how much money you can afford each month. This includes both your monthly housing payment and your monthly debt repayment. To do this, take your gross monthly salary and divide it by 12. Then add 25% to that number to account for tax withholding. Subtract your Superannuation and other retirement accounts from your total to find out how much you can contribute to your savings. Now subtract your total amount from your budgeted spending. This gives you the maximum amount you can spend each month.

5.2. Add Up All Your Monthly Expenses

Now that you've determined how much you can spend each month, add up all your monthly expenses. Include everything from your mortgage/rental payment to utilities to groceries to car repairs. Don't forget about student loan payments, credit card bills, and anything else you pay on a regular basis.

5.3. Subtract Out Your Income

Once you've calculated all your monthly expenses, subtract your income from those numbers. For example, let's say you earn $5,300 per month. Your monthly expenses are $4,600. So you're left with $700 every month that goes towards paying off debts, saving for emergencies, and building up your emergency fund.

5.4. Other expenses

are those you pay each month that aren't included in your mortgage payment. These might include:

Personal loans

You borrow money against your home to cover things like credit cards, holidays, weddings, cars and even school fees.

Car loans

If you're buying a car, you'll probably want to take out a loan. A typical car loan usually lasts three years and covers the cost of the vehicle itself plus interest payments.

Hire purchase

This option lets you buy a car outright, but you still make regular repayments over a set period.

Lease purchase

Similar to a hire purchase, except you don't actually own the car. Instead, it's leased to you for a fixed term. At the end of the contract, you simply return the car and walk away without paying anything further.

Outstanding Loans: Student loans and Alternative Loans

Student loans are often taken out to help fund your studies. They're paid off once you graduate and start earning a salary.

Home Improvement Loan

Home improvements can add value to your property, making it worth more when you sell. However, they can also increase your monthly repayments.

Credit card debt

Credit cards offer great flexibility, allowing you to spend what you want whenever you want. But they come with high interest rates and hefty charges. Credit card debt can also impact your credit approval criteria.

6. Assumptions About Repayments

Equity loans are often used to purchase investment properties. You pay off the mortgage over a set period of time, usually over a 30-year loan term. This gives you the opportunity to build equity in the property.

Your monthly repayment depends on many things, including how much you borrowed, the interest rate, and the term of the loan.

There are no ongoing fees payable. However, there are some charges associated with selling the property. These include stamp duty, legal fees, conveyancing costs, valuation fees, etc.

Repayments are payable, and interest is charged, monthly and on the same day.

The amount of money you repay each month is calculated based on the value of the property, the size of your loan, and the interest rate.

7. Your estimated results

The amount you pay each month depends on how much you borrow, what type of property you buy and how long you take to repay your mortgage.

We've put together a home loan repayment calculator that estimates your monthly payments based on your circumstances.

You can use it to work out how much you could save over 30 years by switching lenders.

If you want to know more about your options, call us today.

8. Pay Off Your Home Loan Faster

If you want to pay off your mortgage sooner, consider setting up an offset account. This allows you to put money into it and earn interest while paying down your home loan. You can do this either directly via your bank or indirectly via an online broker.

There are different ways to set one up. For example, some banks offer offset accounts where you can deposit cash, use credit cards, debit cards or cheques. Others let you invest in shares and bonds. And there are brokers like RateSetter that let you buy and sell financial products such as term deposits, fixed interest rates, variable rates and mortgages.

9. What if Interest Rates Change?

A new interest rate could mean you pay less money each month. If you are thinking about refinancing your mortgage, here are some things to consider.

Interest rates are set by banks and lenders based on what they think it is worth to lend money to you. They do this by looking at how much money people borrow, and whether those borrowers are able to make payments.

If interest rates go up, it makes borrowing money more expensive. This means that fewer people will want to borrow money, and therefore there will be fewer mortgages being offered.

This means that lenders will offer loans at a lower price. So, if you are considering refinancing your mortgage, you should look at what your current lender is offering, and compare it to what other lenders are offering.

You can find out what your current lender offers by contacting them directly. You can also check online to see what others are offering.

The best way to find the lowest interest rate are is to speak to a financial advisor. They can help you decide what is best for you.

10. Principal & interest

When you take out a home loan, there are several different types of repayment options you can choose from. These include principal and interest, interest only, and flexible payment plans. Each option has pros and cons, so it pays to do some research before choosing one.

This type of repayment plan includes both the initial loan amount plus any extra money you add to your mortgage during the course of your loan. This means that you'll be paying off your entire loan balance every month, regardless of how much you owe.

11. Interest-Only Repayments

The advantage of this arrangement is that you won't have to worry about adding extra amounts to your mortgage each month. However, because you'll be repaying the full amount owed, you'll pay more interest overall.

With an interest only loan, you'll make regular repayments towards your loan balance, but no interest will accrue. Instead, the lender will charge you a loan Variable rate based on the current market value of your property.

In most cases, lenders will offer an interest only loan for up to five years. After this period, you'll switch to a principal and interest repayment plan.

An interest-only loan is one where you pay off the principal amount borrowed over a set number of months. You make no repayment towards the outstanding balance until the end of those months. This type of loan is often used for buying a home, because it allows you to borrow large amounts without having to save up a deposit. However, there are drawbacks to taking out an interest-only loan. Here are some things to consider before signing up.

Repayment Period

Repayment terms can vary based on how long you choose for the interest-only period. If you take out a five-year interest-only loan, you'll start making regular repayments once the term ends. But if you opt for a three-year interest-only period, you won't begin paying back the full amount until the third year.

Your monthly repayments will be much higher during an interest-only period. For example, if you're borrowing $100,000 over five years, you'd normally pay around $1,200 per month. During the interest-only period, however, you'll be required to pay $2,400 each month.

12. How your interest is calculated

Your interest is calculated based on how much you owe on your basic home loan. You are charged interest on your outstanding balance each month.

Daily Interest Calculation

The bank calculate your daily interest every day. This includes the interest you paid today plus the interest you paid yesterday. The total amount of interest you pay is added up on your payment due date.

Calculating your loan principal repayments involves working out how much you'll owe each month based on the amount you borrowed, the length of the loan, your current loan details and the interest rates applicable to it. You'll also need to take into account the cost of paying off the loan early and if an early loan settlement may have a negative impact on your total outstanding loan balance.

Actual Loan Calculations

The calculations involved in calculating your repayments include both principal and interest payments, which are usually added together and divided by 12 to give you the total repayment amount.

13.Can I choose fixed interest for the life of my loan?

A rate which is designed to provide a fixed level of interest throughout the term of the mortgage. Fixed rates are usually cheaper than variable rates, because they don't fluctuate based on market movements. However, there are risks involved with fixed rates - such as the risk that inflation will rise during the course of your mortgage, making your repayments more expensive.

Offset Loan Accounts

Offset accounts work like savings accounts. You put money into them, and you can use those funds to pay off your mortgage early without incurring penalties. If you do decide to pay off your mortgage earlier, you'll receive interest on the money you'd otherwise have paid towards your mortgage.

Redraw facilities let you take back any extra amounts you've paid over the minimum payment. This can help reduce the total amount you owe, and therefore make paying off your mortgage easier.

LVR limits represent the maximum amount of money that you can borrow against the value of your home. For example, if you're borrowing $200,000, you can only borrow up to 50% of the property's current value ($100,000).

14.How high could variable interest rates go?

Interest rates are expected to rise again over the next few months. If you're looking to buy a home, it might make sense to lock in a fixed rate now. But what happens if interest rates start rising? How much could they go up? And how does that impact your monthly payment? We take a look at what could happen.

15.Can I make extra repayments?

An advanced home loan repayment is one way to speed up the process of paying off your home loan. If you want to do it, here’s how.

You can make up to $30000 extra repayments over the lifetime of a fixed rate loan, depending on the amount borrowed and the length of the term. This means you could potentially reduce the total interest paid on your loan by up to $30,000.

If you think rates might go up, you can make extra repayments now. Your lender will charge you an additional fee for doing this, but it’ll help you avoid having to refinance later.

The best thing about making extra repayments is that you don’t have to worry about missing out on future discounts. So even though you won’t be able to take advantage of the lower rates offered during the promotional period, you’ll still benefit from the savings once the promotion ends.

16. How could a lump sum payment affect the length of my loan?

A lump sum payment will reduce your monthly payments, but it might increase how long you pay off your loan. You'll want to consider whether you're willing to make additional payments over the life of your loan. If you do, you'll likely see lower interest rates.

If you choose to take out a lump-sum payment, you'll receive one big check at the beginning of your loan term. This reduces the number of monthly installments you'll pay throughout the term of your loan. As a result, your total amount paid will decrease. However, since you won't be making regular payments, your balance will grow faster.

You'll still pay interest on the entire amount of your loan during the period you've been paying less. So, even though you'll pay fewer monthly installments, you'll pay more overall because you'll owe more money at the end of your loan term. Your monthly payment will depend on the size of your lump sum. For example, if you borrow $10,000 and you opt to take out a lump payment of $5,000, you'll pay about $1,200 per month.

17. Conclusion

In conclusion, using a mortgage calculator is a smart way to determine what kind of monthly payments you can afford. It gives you a realistic picture of what you can actually pay every month.

There are many different options to consider and it's important to understand what they all mean so you can decide which works best for you.

Loan,home loan,interest,calculator,loans,principal,home loans,mortgage,cashback,fees,variable rate,borrowing,bank,information,australia,interest rate,property,stamp duty,credit cards,faqs,expenses,calculators,interest rates,cost,refinance,online banking,lenders,options,expert,banker,navigation,refinancing,lump sum,mortgages,finances.

This article covers
Calculators,home loan calculators,home loans,home loans repayment calculator,mortgage house calculator,mortgage loan repayments calculator,mortgage repayment calculator,mortgage repayments,super,discount,comparison,banking,package,available,cashback,investing,assumptions,redraw,postcode,subject,lvr,investor,special,comparison rate,to change,would,information,australia,faqs,online banking,banker,navigation,finances,Extra repayments calculator,duty calculator,Borrowing Power Calculator,Reduced loan repayments,stamp duty calculator.

.
References
loan home loan interest calculator loans principal home loans mortgage cashback fees variable rate borrowing bank information australia interest rate property stamp duty credit cards faqs expenses calculators interest rates cost refinance online banking lenders options expert banker navigation refinancing lump sum mortgages finances

MyBudget home loan repayment calculator can help you get started.

Calculator Assumptions and Disclaimers

The results from this calculator should be used as an indication only. Results do not represent either quotes or pre-qualifications for the product. Individual institutions apply different formulas. Information such as interest rates quoted and default figures used in the assumptions are subject to change. Calculator by Widget Works.

Bec & Jarrad | Clients since 2016

Personal budget services

Have you ever wondered why some people are better at achieving their financial goals than others?

You might be surprised to discover that it has less to do with how much you earn and more to do with how you manage your money.

MyBudget is the proven way to achieve your real estate dreams.

Get started

Don’t just take our word for it

We’re often featured in many trusted sources

We have been with MyBudget for many years and cannot praise them enough. We now have money in savings that we would never have had before which takes the pressure off when emergencies strike. It took a little while to get used to this new way of budgeting but we cannot fault them at all. We don’t have to worry about paying our bills, we send the details via Snap My Bill and they take care of the rest.

MarisaJoined July 2015

The initial interview was so easy and we were made to feel so comfortable discussing our financial position. MyBudget has changed our lives in so many ways but most importantly financially. We never see a bill!!! It’s already budgeted for and paid on time automatically. We still have the freedom to make changes if needed with no hassles at all. They are always contactable. We actually have savings now! I thoroughly recommend MyBudget.

AngelaJoined November 2018

We have been with MyBudget now for over 5 years. In this time MyBudget has really cared for us and has brought our financials under control and for that, I am very thankful. We now have savings and all our credit cards have been paid off. Without MyBudget we wouldn’t be where we are today. So if you think this is for you give it ago because MyBudget really helps with your Financial Goals.

TaniaJoined May 2016

We have always enjoyed MyBudget. The peace of mind knowing that when you upload a bill, that it will be paid on time and reflected in what surplus funds are available in the budget. The 12-month savings forecast is the best out there and a huge motivator to continue to grow your savings. At the end of the day, it is your budget, and you do need to continually review it and tweak it to achieve the goals you have. I never saw them as an expense, but instead an investment in skilled money managers.

Tony & RhondaJoined July 2003

MyBudget FAQs

What is MyBudget?

MyBudget is considered one of Australia’s most trusted budgeting, debt solutions, and money management service companies. We’ve been helping people get out of debt, save and manage their money since 1999. Our state-of-the-art budgeting system and tailored money management services take the time and worry out of having to manage your finances.

How much does MyBudget cost?

Your first appointment with MyBudget is free. If you decide to join, your fees will depend on the complexity of your financial situation and the level of support you need. Our mission is to improve financial wellbeing, so our fees are designed to be an affordable investment towards helping you achieve your financial goals.

Do I qualify for MyBudget services?

Our clients come from all walks of life. From young to old, casual workers to CEOs, from people on government benefits to those with six-figure salaries. The requirements are that you have a regular and reliable income that is paid into a bank account. You will need to meet minimum income and serviceability thresholds. During the initial chat, we will ask you some questions about your financial situation to assess your eligibility.

How are MyBudget appointments conducted?

The majority of our appointments are conducted virtually or over the phone, which means they can be done in the comfort of your own home or office at a time that is best for you. We do offer face-to-face office appointments for our South Australian clients if preferred.

What can I expect at a FREE MyBudget appointment?

Your MyBudget journey begins with an initial conversation with one of our money experts. They will chat to you about your financial position and gain an understanding of the financial goals you want to achieve. Once we have this snapshot, we will connect you with your very own Personal Budgeting Specialist. We can arrange a time convenient to you (and your partner where relevant). At that session we create a complete picture of your 12-month budget plan that is yours to keep for FREE! This budget plan provides you with a detailed understanding of how, together with the support of MyBudget, you can live a life free from money worries and achieve your financial goals.

Can I adjust my budget and access my money?

Absolutely. You have complete control and visibility of your finances. When you make a change to your budget, you’ll see your future forecast and payments update in real-time. New or unexpected expenses are easily added to your budget via our desktop or mobile apps or over the phone. Ideally, unexpected expenses will be covered by surplus savings. (We’ll help you develop a savings safety net.) If savings are not available, one of our money experts will help to adjust your budget so that the new expense fits. It’s your money—you’re always in control—and we’re always here to help. Moving money between your MyBudget and personal accounts is done via bank transfer.

Can’t find what you’re looking for? More FAQs.

Try out our other calculators