Extra Repayments Calculator
How to calculate your savings?
Using the extra repayments calculator is very simple. Work out how much you can afford to repay each month, enter the details of your loan into the calculator and then enter the difference between the normal repayments and the amount you can afford to repay into the extra repayment section.
The calculator will then work out the length of your new mortgage term and the total amount that you will save.
Why make extra repayments on your mortgage?
Making extra repayments instead of, for instance, putting more in super, is a simple and effective way to minimise the length of your loan and reduce the interest payable. If you refinance to a lower interest rate and then start to make those extra repayments, it can be even more beneficial!
By making higher repayments you reduce the principal on your loan much faster. Even with a small $100 /month additional repayment, this will make a very large difference on the total cost of your mortgage.
Can I make extra repayments to my offset account?
Yes, making additional repayments to a 100% offset account will have the same effect as if you had made the extra repayments to your loan account.
If you are disciplined with your money then it is better to make those extra payments to your offset account. This will enable you to access the funds in the future with greater ease. Of course if you access the funds you have paid into your offset account then you will lose the benefit from making your additional repayments.
To find out more about how an offset account works or to calculate your average offset balance please see our 100% offset account page.
More mortgage calculators
You can access a range of mortgage calculators on our website which will help you to work out your borrowing capacity and the cost of your mortgage. If you wish to speak to an expert mortgage broker, please call us on 1300 899 743 or enquire online and we can let you know which lenders can approve you.