Home Loan Repayment Calculator

Find out what your home loan repayments might look like and how they are calculated.

Your home loan repayments are a combination of your outstanding loan amount, also called the principal, and the interest charged on the loan by your lender. If you have an interest only loan you will delay repaying the principal and only pay the interest charged for a set period of time.

Calculate your repayments

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Repayment frequency
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Repayment type

The principal is the amount of money you borrow from the lender. The interest is the cost you pay to the lender to borrow this money. Your repayments will typically include principal and interest, except for interest only periods when no principal loan amount is repaid

Understanding home loan repayments

1. What is the average monthly home loan repayment?

It’s difficult to get a concrete figure on what the average monthly home loan repayment is for Australians due to fluctuating interest rates. The average mortgage size for owner-occupied homes across Australia as of May 2022 is between $611k and $615k

If you have an average $615,000 home loan with a 4% interest rate, your monthly repayments would come to around $2,936 per month. If your interest rate was 3.5%, you would pay about $2,762 in principal and interest mortgage repayments. 

Home loan repayment amounts are contingent on a borrower’s interest rate. Try out Lendi’s repayment calculator to see what your repayments could look like with a different interest rate.

2. How much deposit is needed for a house?

Home loan borrowers are recommended to save up a deposit of at least 20% of the property’s purchase price when buying a home. You may still be able to get a home loan with a deposit lower than 20%, but it’s common to be charged Lender’s Mortgage Insurance

If you are only capable of coming up with a very low deposit (e.g. lower than 10%), you will likely have very limited home loan and lender options. Lendi does work with specialist lenders who may be able to help low-deposit borrowers. 

3. Can you repay your home loan early?

Yes, you can repay your home loan early, depending on your loan type. Paying off your home loan early means that you’ll pay far less interest over the life of your loan, keeping all that money in your pocket.

Borrowers with a variable rate home loan can repay their home loan early by making extra repayments or by adjusting their minimum monthly repayment amount. Variable interest rate home loans offer more flexibility than fixed rate loans do.

On the other hand, if you have a fixed interest rate on your home loan, you may not be able to repay your loan early without facing penalties. 

Many lenders charge a break fee to borrowers who ‘break’ the terms of their mortgage in a number of ways (e.g. refinancing before the end of the fixed term, making too many extra repayments). 

Some lenders allow fixed rate borrowers to make extra home loan repayments, but there is usually a limit. Check your mortgage terms and conditions or contact your lender directly to find out. 

4. Can you pause your home loan repayments?

There are certain situations where borrowers may be able to pause their repayments. This is often referred to as a ‘repayment holiday’ and is where, with the strict permission of your lender, you can reduce your repayments or avoid making them altogether for a specified period of time. 

To be clear, you must organise a repayment pause with your lender. You can’t just stop making repayments without getting approval. 

A repayment pause may be an option for borrowers experiencing personal or financial hardship, but it is often used by borrowers who are ahead of their scheduled mortgage repayments and want to pause them while travelling or changing jobs, for example. 

5. How to repay your home loan faster?

Here are some ways you can pay off your home loan faster:

  • Make extra repayments

  • Switch to making fortnightly or repayments as you’ll end up making the equivalent of one extra month’s repayment per year

  • Get a lower interest rate that helps you afford higher repayments

  • Make higher home loan repayments

  • Save on home loan interest by opening an offset account

  • Stay away from interest only home loans that don’t reduce your principal balance.

6. How do home loan repayments work?

You can make repayments in two ways:

  • Principal and interest repayments: you repay the principal (loan amount) and the interest that accrues on top of the principal

  • Interest only repayments: you only pay off the interest growing on the principal amount.

Most borrowers – especially owner occupiers – will make principal and interest repayments. You can get an idea of how much your repayments will be by inputting your loan amount, interest rate, loan term and repayment frequency into Lendi’s repayment calculator.

When setting up a home loan, you can usually choose your repayment frequency. The default is likely to be monthly repayments, but you can pay fortnightly or even weekly. 

Many lenders allow borrowers to make ‘extra repayments’. These are additional repayments on top of your minimum scheduled repayment amount. Check with your lender to find out whether you can make extra repayments and whether there are any restrictions. 

7. What is a comparison rate?

Unlike an interest rate, a comparison rate gives a prospective borrower a more accurate idea of what a home loan will cost. A comparison rate will factor in home loan fees, as well as just the interest rate. 

8. How is interest calculated?

Home loan interest is calculated daily, by multiplying a borrower’s loan amount by their interest rate and then dividing this by 365 days. At the end of the month, the lender will combine these daily interest charges to form the interest you pay on top of your principal repayment each month. 

9. What is the difference between principal and interest or interest only loans?

There are two types of repayments that borrowers may be be able to choose from:

  • Principal and interest repayments: you repay the principal (loan amount) and the interest that accrues on top of the principal

  • Interest only repayments: you only pay off the interest growing on the principal amount.

Note that not every borrower will be able to make interest only repayments – these are more common for investment home loans. 

Important legal stuff

Lendi is the trading name of Lendi Pty Ltd (ACN 611 161 856), a related body corporate of Auscred Services Pty Ltd (ACN 164 638 171, Australian Credit Licence 442372). We will never sell your email address to any third party or send you nasty spam, promise.

# Quoted rate applies only to PAYG loans with LVR of 80% or less with security in non-remote areas. All applications are subject to assessment and lender approval.

Lendi is a privately owned and operated Australian business. Our mission is to change the way Australians get home loans by providing a faster, smarter and more secure home loan experience designed around the customer’s convenience and needs. Although Lendi compares over 1600 products (2,500+ products including feature and pricing variations) from more than 25 lenders, we don't cover the whole market or compare all features and there may be other features or options available to you. Lendi Group Pty Ltd, which is the ultimate holding company of the Aussie and Lendi businesses is owned by numerous shareholders including; banks such as CBA, 1835i (ANZ’s external venture capital partner) and Macquarie Bank, the Lendi founders and employees, and a number of Australian institutional investors and sophisticated investors including UniSuper.

*WARNING: This comparison rate is true only for the example given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. The comparison rates are based on a loan amount of $150,000 over a loan term of 25 years. Fees and charges apply. All applications are subject to assessment and lender approval. Quoted rate applies only to PAYG loans with LVR of 80% or less with security in non-remote areas. All applications are subject to assessment and lender approval.

IMPORTANT INFORMATION: Loan terms of between 1 Year and 40 Years are available subject to lender and credit criteria. Maximum comparison rate will not exceed 14.99% (see comparison rate warning above). Any calculations or estimated savings do not constitute an offer of credit or a credit quote and are only an estimate of what you may be able to achieve based on the accuracy of the information provided. It doesn't take into account any product features or any applicable fees. Our lending criteria and the basis upon which we assess what you can afford may change at any time without notice. Savings shown are based on user inputted data and a loan term of 30 years. All applications for credit are subject to lender credit approval criteria. Top rates include lenders who are on our panel and are then defined by the circumstances provided by the borrower.

The Lendi Group Pty Ltd, which is the ultimate holding company of the Aussie and Lendi businesses is owned by numerous shareholders including; banks such as CBA, 1835i (ANZ’s external venture capital partner) and Macquarie Bank, the Lendi founders and employees, and a number of Australian institutional investors and sophisticated investors including UniSuper.

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