Pay your home loan off faster. Save mortgage interest. These are just some of the perks of making extra repayments for your home loan. Find out how much time and money you can save with our handy extra repayments calculator.
Most, if not all, variable home loans let you make extra repayments against your mortgage principal – usually for free. These extra repayments count towards the initial loan amount you borrowed, thus eliminating your debt faster.
This also reduces your interest payments over time, since the principal used to calculate your interest gets smaller, faster.
Mozo’s extra repayments calculator estimates how much time and money you could save on your home loan by putting more cash into your mortgage repayments.
To use the calculator, you’ll need to know:
The size of your home loan.
The term of your home loan.
Your home loan interest rate.
You can also include an introductory interest rate if your home loan has one.
Enter these details into the boxes in the calculator. Now it’s time to experiment. You can make extra repayments either by adding extra money to your monthly payments or as a lump sum. Plug these numbers into the calculator to see how they could affect your long-term mortgage costs.
If your home loan lets you make extra repayments, it’s usually just a matter of increasing the size of your mortgage repayments. For example, instead of transferring $2,000 a month into your mortgage account, you transfer $2,050.
You could also transfer a lump sum payment the same way, i.e. putting your tax return or a work bonus toward your mortgage.
How much money extra repayments save you depends on your initial loan amount, loan term, and interest rate. But let’s take a look at some home loan statistics to make an estimate.
The average mortgage size in Australia is $610,000, and the average variable home loan interest rate in Mozo’s database is 6.85% p.a. (for owner-occupiers with LVRs < 80%) as of January 2024. Let’s say you have a loan term of 25 years.
According to Mozo’s extra repayment calculator, paying an extra $100 monthly on this home loan for the first ten years could save $34,484 in total interest and discharge the mortgage 10 months early. Not too bad!
Owner Occupier, LVR <80%
Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply online in minutes.
Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply online in minutes.
Read our Mozo Review to learn more about the Unloan Variable
Fixed, Owner Occupier, Principal & Interest, LVR<70%
No upfront or ongoing fees. Free extra repayments and redraw facility. Option to earn Qantas points. Min 30% deposit required. Borrow up to $750,000.
No upfront or ongoing fees. Free extra repayments and redraw facility. Option to earn Qantas points. Min 30% deposit required. Borrow up to $750,000.
Read our Mozo Review to learn more about the Basic Home Loan
Owner Occupier, Principal & Interest, LVR 70-80%
Enjoy competitive rates for owner occupiers. Enjoy unlimited free extra repayments. Flexibility to redraw additional payments for free. No ongoing monthly service fee. Settlement fee waived on new borrowings from $50,000 (T&Cs apply).
Enjoy competitive rates for owner occupiers. Enjoy unlimited free extra repayments. Flexibility to redraw additional payments for free. No ongoing monthly service fee. Settlement fee waived on new borrowings from $50,000 (T&Cs apply).
Read our Mozo Review to learn more about the Discounted Home Value Loan
Investment, LVR <80%
Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for investors. No application or banking fees. No monthly account keeping or early exit fees. Apply online in minutes.
Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for investors. No application or banking fees. No monthly account keeping or early exit fees. Apply online in minutes.
Read our Mozo Review to learn more about the Unloan Variable
Owner Occupier, Principal & Interest, <80% LVR
Enjoy up to $3000 cashback for eligible first home buyers and $2000 cashback for refinancers on eligible home loans with the ANZ Fixed Rate Home Loan. Get the security of repayment certainty with a competitive locked in rate. No ongoing fees to pay. Offset account on 1-year fixed loans ($10/month fee applies). Interest-only payments allowed.
Enjoy up to $3000 cashback for eligible first home buyers and $2000 cashback for refinancers on eligible home loans with the ANZ Fixed Rate Home Loan. Get the security of repayment certainty with a competitive locked in rate. No ongoing fees to pay. Offset account on 1-year fixed loans ($10/month fee applies). Interest-only payments allowed.
Read our Mozo Review to learn more about the Fixed Rate
Owner Occupier, LVR<60%, Principal & Interest
Enjoy a low rate home loan with $0 application fee and $0 ongoing fees. Flexibility to split your loan and set different repayment types. Fee free redraw from your loan using online banking. Flexible ways to repay. 40% Deposit required.
Enjoy a low rate home loan with $0 application fee and $0 ongoing fees. Flexibility to split your loan and set different repayment types. Fee free redraw from your loan using online banking. Flexible ways to repay. 40% Deposit required.
Read our Mozo Review to learn more about the Basic Home Loan
LVR<80%, Owner Occupier, Principal & Interest
Get a competitive variable rate with ING’s Mortgage Simplifier. Free extra repayments, no monthly or annual fees. Freedom to make free extra repayments or redraws.
Get a competitive variable rate with ING’s Mortgage Simplifier. Free extra repayments, no monthly or annual fees. Freedom to make free extra repayments or redraws.
Read our Mozo Review to learn more about the Mortgage Simplifier
Owner Occupier, LVR<60%, Principal & Interest
Ability to open up to 10 offset accounts per loan account. Fast online application. Linked Debit Mastercard® with fee-free access at ATMs across Australia. Package a credit card with your home loan and the annual card fee will be waived (T&Cs apply). 40% deposit required.
Ability to open up to 10 offset accounts per loan account. Fast online application. Linked Debit Mastercard® with fee-free access at ATMs across Australia. Package a credit card with your home loan and the annual card fee will be waived (T&Cs apply). 40% deposit required.
Read our Mozo Review to learn more about the Offset Home Loan
Principal and Interest, LVR <90%
Affordable home loan rate for buyers or refinancers. No monthly or ongoing fees. Option to add an offset for 0.10%. Access to savings with unlimited redraws available. Minimum 10% deposit required.
Affordable home loan rate for buyers or refinancers. No monthly or ongoing fees. Option to add an offset for 0.10%. Access to savings with unlimited redraws available. Minimum 10% deposit required.
Read our Mozo Review to learn more about the Variable Home Loan 90
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A home loan redraw facility is a special account attached to your home loan that lets you dip back into extra repayments you’ve already made.
Pulling funds from a redraw can sometimes come with fees. It will also increase your loan size since you’ve pulled the funds from your mortgage, thus increasing your interest payments.
Extra repayments are a standard feature for variable home loans, not fixed ones. It’s unlikely you make extra repayments during your fixed home loan term.
Adding a little more money to your mortgage repayments in the short term might be annoying, but the time and interest you save could be worthwhile. Essentially, extra repayments can get you debt-free faster and cheaper.
Our extra repayments calculator makes it easy to see how this works.