Monthly repayments on common loan sizes
Principal and interest repayments over 30 years, before fees:
| Loan | 5.75% | 6.25% | 6.75% |
|---|---|---|---|
| $400,000 | $2,334 | $2,463 | $2,594 |
| $600,000 | $3,501 | $3,694 | $3,892 |
| $800,000 | $4,669 | $4,926 | $5,189 |
| $1,000,000 | $5,836 | $6,157 | $6,486 |
| $1,200,000 | $7,003 | $7,389 | $7,783 |
Principal and interest vs interest only
On a $600,000 loan at 6.25% over 30 years, principal and interest repayments are about $3,694 a month and the loan is paid off in full. Interest only repayments are about $3,125 a month, but the balance does not fall, and repayments jump when the interest only period ends.
Over the life of the loan, total interest on that example is about $729,949 with principal and interest, versus about $774,905 with five years interest only first.
Ways to pay your loan off faster
- Make extra repayments when your loan allows it, even small ones
- Use an offset account so your savings reduce the interest charged
- Keep repayments the same when rates fall
- Review your rate every year or two and refinance if the saving outweighs the cost
Frequently asked questions
Paying half your monthly repayment every fortnight means 26 half-payments a year, which equals 13 monthly payments instead of 12. That extra repayment each year reduces interest and shortens the loan. Paying the exact fortnightly equivalent of a monthly amount saves very little.
No. It shows repayments of principal and interest only. Lender fees, offset account fees and LMI are extra. The comparison rate on a loan includes most fees and is a better guide to total cost.
Use a rate you have been quoted, or a current advertised rate for your loan type. Rates vary by lender, loan size, deposit and whether you are an owner occupier or investor. We can get you real quotes.