By making extra repayments you can save money and shave years off your loan. This calculator shows you potential savings extra repayments can make to the life of your loan.
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.
While using the mortgage repayment calculator can show you the benefits of additional repayments, it’s important to remember that you also need to consider whether you will need a home loan with the flexibility to redraw these payments in times of need.
For example: by using the mortgage repayment calculator to make extra monthly repayments of $100 on a $500,000 mortgage with an interest rate of 7.01% p.a and a loan term of 30 years, you could save thousands!
Result: by making $100 in extra mortgage repayments per month over the life of the loan you could not only save 2 years and 5 months off your loan but would also save $76,252.09*
A Loan Market mortgage expert will help you with the sums to increase the savings on your home loan by making regular extra repayments on your mortgage without affecting your lifestyle.
Budgeting is an important part of managing your finances so take this opportunity to talk to a Loan Market mortgage broker who can help you understand the key numbers around your home loan.