Question 1

What affects my home loan repayments?

Accepted Answer

Your repayments are influenced by several factors including your loan amount, interest rate, loan term, repayment frequency, and loan type. Changes to any of these can increase or reduce your repayment amount over time.

Question 2

What's the difference between Principal & Interest and Interest Only?

Accepted Answer

Principal & Interest repayments reduce your loan balance over time and eventually pay off the loan in full. Interest Only repayments temporarily keep repayments lower by only paying the interest charged, however the loan balance does not reduce during the Interest Only period.

Question 3

How does an offset account work?

Accepted Answer

An offset account is a transaction account linked to your home loan. The balance in the offset account reduces the amount of your loan that interest is calculated on. For example, if you have a $600,000 loan and $50,000 in your offset account, you may only be charged interest on $550,000. Over time, this can reduce interest costs and help pay off your loan faster.

Question 4

Do fortnightly repayments reduce interest?

Accepted Answer

Repayment frequency alone does not automatically reduce interest if repayments are calculated to the lender's minimum repayment amount over the full loan term. However, making additional repayments, whether monthly, fortnightly, or weekly, can reduce the total interest paid and shorten your loan term.

Question 5

How much can extra repayments save?

Accepted Answer

Even small extra repayments can significantly reduce the total interest paid and help pay off your loan sooner. The amount saved depends on your loan amount, interest rate, loan term, and repayment frequency. Try different scenarios in the calculator above to see how extra repayments may impact your loan.

Question 6

Can I speak to a broker about my repayments?

Accepted Answer

Yes. If you would like help reviewing your repayments, refinancing options, interest rate, or loan structure, our team can help assess whether your current loan is still competitive and identify potential savings.

Loan Repayments Calculator

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