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.
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 | |||||||||||||
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| Variable | More details | ||||||||||||
| FEATUREDUNLIMITED REDRAWSSPECIAL OFFER | Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)
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Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)
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| Variable | More details | ||||||||||||
| FEATUREDAN EASY DIGITAL APPLICATION | Neat Variable Home Loan (Principal and Interest) (LVR < 60%)
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Neat Variable Home Loan (Principal and Interest) (LVR < 60%)
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| Variable | More details | ||||||||||||
| FEATURED100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES | Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 60%)
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Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 60%)
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| Variable | More details | ||||||||||||
| NSW/VIC/SA METRO & INNER REGIONAL AREAS$5000 CASHBACK. T&Cs APPLY. | Variable Home Loan (Principal and Interest)
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Variable Home Loan (Principal and Interest)
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| Variable | More details | ||||||||||||
| NO UPFRONT OR ONGOING FEES | Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 80%)
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Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 80%)
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| Variable | More details | ||||||||||||
| NO APPLICATION FEES | Yard Home Loan (Principal and Interest) (Special) (LVR < 80%)
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Yard Home Loan (Principal and Interest) (Special) (LVR < 80%)
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| Variable | More details | ||||||||||||
| 100% FULL OFFSET ACCOUNT | Ocean Owner Occupied (Amounts < $1m, LVR < 60%)
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Ocean Owner Occupied (Amounts < $1m, LVR < 60%)
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| Variable | More details | ||||||||||||
| $0 APPLICATION FEE | Budget Home Loan (Principal and Interest) (LVR < 80%)
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Budget Home Loan (Principal and Interest) (LVR < 80%)
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| Variable | More details | ||||||||||||
| NO ONGOING FEES | |||||||||||||
Basic Flyer Home Loan (Principal and Interest) (LVR 60%-70%) | |||||||||||||
| Variable | More details | ||||||||||||
| FEATUREDGET A DISCOUNTED GREEN RATE* | Green Home Loan (Principal and Interest)
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Green Home Loan (Principal and Interest)
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| Variable | More details | ||||||||||||
| NO UPFRONT OR ONGOING FEES | Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 95%)
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Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 95%)
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| Fixed | More details | ||||||||||||
| BORROW UP TO 95% OF PROPERTY VALUE | |||||||||||||
Fixed Rate Home Loan (Principal and Interest) 3 Years (LVR ≤ 80%) | |||||||||||||
| Variable | More details | ||||||||||||
| 100% FULL OFFSET ACCOUNT | |||||||||||||
Offset Package Home Loan (Principal and Interest) (LVR 70%-80%) | |||||||||||||
| Fixed | More details | ||||||||||||
Fixed Options Home Loan (Principal and Interest) 2 Years (LVR < 70%) | |||||||||||||
| Fixed | More details | ||||||||||||
Breakfree Package Fixed Rate Home Loan (Principal and Interest) 3 Years (LVR < 80%) | |||||||||||||
| Variable | More details | ||||||||||||
| FREE REDRAW FACILITY | |||||||||||||
Basic Flyer Home Loan (Principal and Interest) (LVR 70%-80%) | |||||||||||||
| Variable | More details | ||||||||||||
Smart Home Loan (Principal and Interest) (LVR < 80%) | |||||||||||||
| Variable | More details | ||||||||||||
| GREAT FLEXIBLE LOAN OPTIONS | |||||||||||||
Basic Home Loan (Principal and Interest) (LVR 70%-80%) | |||||||||||||
| Fixed | More details | ||||||||||||
Premier Package Fixed Options Home Loan (Principal and Interest) 2 Years (LVR < 70%) | |||||||||||||
| Variable | More details | ||||||||||||
| FEATUREDLIMITED TIME OFFER | Smart Booster Home Loan Discounted Variable - 1yr
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Smart Booster Home Loan Discounted Variable - 1yr
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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. All products will list the LVR with the product and rate which are clearly published on the Product Provider’s web site. 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 May 26, 2022. View disclaimer.
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