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A home loan is likely to be the biggest expense you will ever have. While the home itself will cost several hundred thousand dollars at least, the interest component of that loan could easily add another couple of hundred thousand dollars. The average home loan can last 25-30 years, which is a long time to pay something off. The longer you have the loan for, the more you’ll have to pay.

But what if there was a way to reduce the length of your home loan, and save on interest? By making an extra lump sum payment off your loan, you can.

Any extra repayment you make - be it lump sum repayments or recurring repayments above the minimum - can save you money simply because it reduces the principal on the loan, aka the borrowed amount left to repay. Interest is charged on this principle amount, so the smaller the principal, the less there is to charge interest on.

Also the more you repay, the quicker you’ll pay off the loan. Our home loan extra repayment & lump sum payment calculator can show you just how much difference extra repayments can make to your overall loan.

All you have to do with our extra repayment/lump sum calculator is:

  • Enter the loan amount and the loan term (the length of the loan)
  • Enter your loan’s interest rate
  • Enter your repayment frequency
  • Enter how much your extra lump sum payment will be, or how much extra you’ll be paying per month
  • Specify how far into the loan schedule you’ll make these extra repayments

Let’s say you have a 25-year, $400,000 home loan at a 3.50% interest rate. Using our lump sum repayment calculator, you can estimate that a $25,000 one-off payment into your home loan could shave 21 months and $17,500 off your home loan.

Using our extra repayment calculator, if you started paying an extra $200 a month into that same home loan, you could save more than 4 years and $38,000.

So if you’ve received some extra cash lately (like a work bonus or an inheritance) or just want to get ahead of your loan, then use our extra repayment and lump sum calculator to see how much you could save by using that money to pay down your mortgage.

Compare Home Loans


Looking for a home loan?

Buying a home or looking to refinance? The table below features home loans
with some of the lowest interest rates on the market for owner occupiers.

Lender

VariableMore details
Online ExclusiveUp To $4K Cashback Includes NOV RBA Rate Increase
  • Immediate cashback upon settlement
  • $2000 for loans up to $700,000
  • $4000 for loans over $700,000
Online ExclusiveUp To $4K Cashback Includes NOV RBA Rate Increase

loans.com.au – Variable Basic Cashback Home Loan (Principal and Interest) (LVR < 70%)

  • Immediate cashback upon settlement
  • $2000 for loans up to $700,000
  • $4000 for loans over $700,000
VariableMore details
Refinance OnlyApply In Minutes
  • No application or ongoing fees. Annual rate discount
  • Unlimited redraws & additional repayments. LVR <80%
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
Refinance OnlyApply In Minutes

Unloan – Variable Rate Home Loan – Refinance Only

  • No application or ongoing fees. Annual rate discount
  • Unlimited redraws & additional repayments. LVR <80%
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
VariableMore details
Unlimited Redraws
  • No annual fees – None!
  • Get fast pre-approval
  • Unlimited additional repayments free of charge
  • Redraw freely – Access your additional payments when you need them
  • Home loan specialists available today
Unlimited Redraws

ubank – Neat Variable Home Loan (Principal and Interest) (LVR < 60%)

  • No annual fees – None!
  • Get fast pre-approval
  • Unlimited additional repayments free of charge
  • Redraw freely – Access your additional payments when you need them
  • Home loan specialists available today
VariableMore details
  • Up is 100% owned by Bendigo Bank.
  • Up to 50 offset accounts
  • New joiners get $10 by signing up to the app using code UPHOMESAVINGS. (T&Cs apply)

Up – Up Home Variable (Principal & Interest) (LVR ≤ 90)

  • Up is 100% owned by Bendigo Bank.
  • Up to 50 offset accounts
  • New joiners get $10 by signing up to the app using code UPHOMESAVINGS. (T&Cs apply)
VariableMore details
4.6 Star Customer RatingsIncludes Nov RBA Rate Increase
4.6 Star Customer RatingsIncludes Nov RBA Rate Increase

loans.com.au – Variable Home Loan (LVR < 90%)

    VariableMore details
    • $0 application fee
    • Fast turnaround times
    • Estimate your borrowing power in as little as 1 minute

    Macquarie Bank – Offset Package Home Loan (Principal and Interest) (LVR 60%-70%)

    • $0 application fee
    • Fast turnaround times
    • Estimate your borrowing power in as little as 1 minute
    VariableMore details

    ubank – Neat Variable Home Loan (Principal and Interest) (LVR 70%-80%)

      VariableMore details
      • $0 application fee
      • Fast turnaround times
      • Estimate your borrowing power in as little as 1 minute

      Macquarie Bank – Basic Home Loan (Principal and Interest) (LVR 70%-80%)

      • $0 application fee
      • Fast turnaround times
      • Estimate your borrowing power in as little as 1 minute
      FixedMore details

      Reduce Home Loans – Home Owners Dream Fixed Cashback 1 Year (LVR < 80%)

        FixedMore details

        Westpac – Premier Package Fixed Options Home Loan (Principal and Interest) 1 Year (LVR < 70%)

          FixedMore details

          Commonwealth Bank – Fixed Rate Home Loan (Principal and Interest) 3 Years

            VariableMore details

            NAB – Base Variable Home Loan (Principal and Interest) (New Customer)

              FixedMore details

              ANZ – Fixed Rate Home Loan (Principal and Interest) 5 Years (LVR < 80%)

                FixedMore details
                • Up is 100% owned by Bendigo Bank.
                • Up to 50 offset accounts
                • New joiners get $10 by signing up to the app using code UPHOMESAVINGS. (T&Cs apply)

                Up – Up Home Fixed 4 Years (Principal & Interest) (LVR ≤ 90)

                • Up is 100% owned by Bendigo Bank.
                • Up to 50 offset accounts
                • New joiners get $10 by signing up to the app using code UPHOMESAVINGS. (T&Cs apply)
                VariableMore details

                Heritage Bank – Discount Variable Home Loan ($150k+) (LVR < 70%)

                  VariableMore details

                  P&N Bank – & Basic Home Loan (LVR < 60%)

                    FixedMore details

                    Newcastle Permanent – Premium Plus Package Fixed Rate Home Loan Special (Principal and Interest) 2 Years

                      VariableMore details

                      MOVE Bank – Straightforward Plus Home Loan (LVR < 80%) (New Customer)

                        FixedMore details

                        HSBC – Package Fixed Rate Home Loan (Principal and Interest) 4 Years (LVR < 80%)

                          FixedMore details

                          IMB Bank – Fixed Rate Home Loan (Principal and Interest) 3 Years (LVR ≤ 80%)

                            Important Information and Comparison Rate Warning

                            Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of December 11, 2023. View disclaimer.