How extra repayments can shorten your home loan
A standard principal-and-interest repayment covers interest for the period and then reduces principal. When you add an extra repayment, more of the loan balance is reduced sooner.
Because future interest is calculated on a smaller balance, regular extra repayments can reduce total interest and shorten the loan term.
Monthly, fortnightly or weekly?
The extra amount applies every selected repayment period. $200 monthly means $2,400 extra per year, while $200 fortnightly means $5,200 extra per year.
Choose an amount that genuinely reflects your available budget rather than simply testing the largest possible figure.
Check fixed-rate restrictions
Some fixed-rate loans restrict extra repayments or may apply break costs. Always check the loan contract or speak with the lender before increasing repayments.
Keep an emergency buffer
Paying a mortgage down faster can be useful, but it should not leave you without accessible savings. Offset and redraw arrangements can also affect the best strategy and are not modeled here.
Extra repayment FAQs
Can I make extra repayments on a fixed-rate loan?
Some fixed-rate loans limit extra repayments or may apply fees or break costs. Check your lender's terms first.
Does the main result include the extra amount?
Yes. The page shows the standard scheduled repayment and the repayment after your selected extra amount is added.
What if I enter $0 extra?
Both repayment schedules match, so the modeled interest and time savings are zero.
Does this assess borrowing capacity?
No. This calculator only illustrates how extra repayments may affect an existing principal-and-interest home loan.
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