Extra mortgage repayments
You can save thousands in monthly repayments and take years off your loan by making extra repayments.
Once you have an idea of your home loan repayments it’s important to find out how extra mortgage repayments can save you money and let you pay off your home loan faster.
You can use the contributions from things such as bonuses and tax returns to make ad-hoc additional loan repayments and reduce the principal on your mortgage faster. The earlier in the loan term you begin making additional repayments, the greater the benefit in terms of time and money saved. This mortgage repayment calculator lets you calculate these savings based on different repayment amounts over various terms.
Talk to a Loan Market mortgage adviser to find a home loan to match your repayments strategy.
Extra mortgage repayments calculator
Know the difference between a fixed rate and a variable home loan and discover how you can leverage each to your favor. When used for mortgages for instance, locking in a 30-year fixed rate will secure you with affordable repayments. However, if you’re thinking of selling your home or refinancing your mortgage after a few years, a variable rate could work in your advantage - especially when it hits lower rates and become more affordable in the short term.
Moreover, here’s how they differ:
- A fixed rate loan has the same interest rate for the entirety of the borrowing period. If you want predictability over payments, you might be someone who prefer fixed rate loans. Many homeowners opt for fixed rate as it allows them to plan and allocate their finances. If you’re someone who have stable but tight finances, this can protect you from the possibility of rising interest rates.
- For variable rate loans, these have an interest rate that changes over time in response to changes in the market. In general, variable rate loans have lower interest rates and could be more beneficial for you in the long run but it comes with risks. Rising interest rates can greatly affect the cost of borrowing, and you should be prepared of the potential elevated loan costs. If you’re someone who can afford to take risk or plan to pay off loans quickly, this is a good option.
Get going with our split home loan calculator. Simply input your loan details - amount, payment frequency, loan term, fixed portion, and variable interest rate - to gauge how you can both work fixed and variable rate to your benefit.
Talk to a Loan Market mortgage adviser and discuss the type of loan you’re looking for.