Extra Repayment Calculator

When you make an extra repayment, you contribute additional funds towards your home loan on top of your minimum monthly repayments. 

Unlimited extra repayments are typically only allowed on a variable rate home loan.  

However, some fixed rate home loans do allow extra repayments up to a certain amount. This will vary depending on your specific loan and lender. Ensure you double-check before you make any extra repayments to avoid break fees.  

Yes, variable rate loans typically allow you to make unlimited extra repayments on your home loan. 

Yes, extra repayments work the same for interest only loans as they do for owner-occupied loans.  

If you have a variable rate loan, you’ll be able to make unlimited extra repayments. But, if you’re on a fixed rate loan, there will usually be a maximum cap on the repayments you can make.  

Yes, any extra repayments you make on your home loan will automatically go towards paying off your principal.  

When you make an extra repayment, you chip away at your principal amount. Because the interest charged on your home loan is based on your outstanding loan amount, the more principal you pay, the less you’ll be charged in interest.

Both extra monthly repayments and lump sums are great ways to potentially pay off your loan sooner and save money on interest. 

Generally, it may be a better idea to make extra repayments on your home loan when you have the available funds instead of waiting to grow a larger lump sum. This is because the sooner you pay off your principal amount, the less interest you’ll pay over the life of your loan. 

Interest is charged daily, so more frequent repayments can help reduce the interest you pay on your loan overall. 

There are several potential benefits to making extra repayments on your home loan.  

By paying extra on your loan, you pay down the principal amount faster. This means you’ll potentially pay less in interest over the life of your loan and may even shorten your loan term. 

For example, let’s say you have a $600,000 P&I owner-occupied loan with a 30-year loan xterm and an interest rate of 4.55%. 

By making an additional repayment of $100 a month, you could potentially save $37,446 in interest and shave 2 years off your loan term.  

Yes, paying off your loan faster can help you save money on interest. This is because interest is calculated on your outstanding loan amount. The sooner you pay down your loan amount, the lesser interest you’ll be charged on your home loan.  

Use our Extra Repayments Calculator to see how much you could potentially save on home loan interest by making extra repayments.  

No, making extra repayments on your home loan won’t boost your credit score.  

This is because there are regulations that prevent credit reporting agencies from knowing your balance. This means they won’t actually know when and if you’ve made extra repayments. 

However, when you do pay off the entire balance of your home loan, this will have an impact on your credit score.  

Yes, it’s possible to repay your mortgage early. This can be done by making extra repayments on your home loan. 

Keep in mind, your ability to make extra repayments will depend on the type of loan you have. If you have a variable rate home loan, you’ll typically be able to make unlimited extra repayments at any time.  

However, if you have a fixed rate home loan, there will usually be a limit on the amount of extra loan repayments you can make. If you make payments above this cap, you’ll be charged break fees for breaking the terms and conditions of your home loan. 

Ready to apply?

Amazing! Our  Brokers will take over the research and guide you in choosing a home loan that’s right for you.

02 9758 2182
Free credit report
Free valuation report
Direct to broker