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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

Variable
More details
  • Available for purchase or refinance, min 10% deposit needed to qualify.
  • No application, ongoing monthly or annual fees.
  • Quick and easy online application process.
Disclosure

loans.com.au – Variable Home Loan P&I <90%

  • Available for purchase or refinance, min 10% deposit needed to qualify.
  • No application, ongoing monthly or annual fees.
  • Quick and easy online application process.
Disclosure
Variable
More details
Built and funded by CommBank
  • 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.
Disclosure
Built and funded by CommBank

Unloan – Variable Rate Home Loan LVR < 80%

  • 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.
Disclosure
Variable
More details
100% offset
  • Easy application. Fast approval. 100% offset.
  • Unlimited additional repayments free of charge.
  • Redraw available - Access additional payments.
100% offset

Ubank (part of NAB) – Flex variable home loan - 100% offset

  • Easy application. Fast approval. 100% offset.
  • Unlimited additional repayments free of charge.
  • Redraw available - Access additional payments.
Variable
More details
  • No application, ongoing monthly or annual fees.
  • Available for refinance or purchases. Quick and easy online application process.
  • Dedicated loan specialist throughout the loan application.
  • Discounted interest rate for 5 years for homes with an eligible solar system
Disclosure

loans.com.au – Solar Home Loan P&I <90%

  • No application, ongoing monthly or annual fees.
  • Available for refinance or purchases. Quick and easy online application process.
  • Dedicated loan specialist throughout the loan application.
  • Discounted interest rate for 5 years for homes with an eligible solar system
Disclosure
Variable
More details

Macquarie Bank – Offset Home Loan (Owner Occupier, Principal and Interest, max LVR 60%)

  • Check your eligibility in as little as one minute
Variable
More details
Disclosure

Ubank (part of NAB) – Neat home loan - max. 60% LVR (Owner occupied, Principal and interest)

    Disclosure
    Variable
    More details
    Disclosure

    Macquarie Bank – Offset Home Loan (Owner Occupier, Principal and Interest, max LVR 80%)

      Disclosure
      Variable
      More details

      Ubank (part of NAB) – Neat home loan - max. 80% LVR (Owner occupied, Principal and interest)

        VariableN/A
        More details

        Regional Australia Bank – Home Loan without Offset - OO,PI LVR 90% or less

          Variable
          More details

          IMB Bank – Budget Home Loan (Principal and Interest) (LVR 90%-95%)

            Variable
            More details

            ME – CompleteME Home Loan - LVR 60% to 80% - $150,000 to $400,000

              VariableN/A
              More details
              Disclosure

              Commonwealth Bank – Extra Home Loan (Principal and Interest) (LVR 60%-70%)

                Disclosure
                VariableN/A
                More details

                P&N Bank – Basic Variable Home Loan >90% and =<95%

                  Variable
                  More details

                  Heritage Bank – Home Advantage Variable $150,000 to $249,999 LVR >80% to 90%

                    Variable
                    More details

                    Great Southern Bank – Basic Variable - Owner Occupier Principal & Interest (LVR is above 80% and less than or equal to 90%)

                      Variable
                      More details
                      • Available for purchase or refinance, min 10% deposit needed to qualify.
                      • No application, ongoing monthly or annual fees.
                      • Quick and easy online application process.
                      Disclosure

                      loans.com.au – Variable Home Loan with Offset P&I <90%

                      • Available for purchase or refinance, min 10% deposit needed to qualify.
                      • No application, ongoing monthly or annual fees.
                      • Quick and easy online application process.
                      Disclosure
                      Variable
                      More details

                      AMP – Essential Home Loan (Owner Occupied, Principal and Interest, $750,000+, <= LVR 90%)

                        Variable
                        More details

                        Qudos Bank – Qantas Points Home Loan (Owner Occupied) (PI) (LVR <80%) 10-20%

                          Variable
                          More details
                          Disclosure

                          ANZ – Simplicity PLUS Home Loan (Principal and Interest) (LVR < 70%) (New Customer) Special offer

                            Disclosure
                            Variable
                            More details

                            BCU Bank – OMG! Home Loan - LVR of >80% and <=95%

                              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 June 30, 2025. View disclaimer.

                              Important Information and Comparison Rate Warning