Loan repayments calculator

Things to consider when using a loan repayment calculator

If you’re wondering, “what is the best way to estimate and calculate my repayments?”, an online repayments calculator is generally a good place to start. While the home loan calculator repayments are based on your inputted loan amount, frequency of repayments and type, there are other factors you need to consider when it comes to taking out a home loan and estimating your potential repayments. Some of these include:

• Extra charges and insurance — Calculating the real cost of a home loan means considering potential extra fees, including establishment fees, ongoing fees, lenders mortgage insurance (LMI) and more. These are not always involved when taking out a home loan, but they are important to know about nonetheless. >
• The option for extra repayments — Being able to pay more than your regular home loan repayments could mean paying off your mortgage faster. For fixed loans, this option might not be available, or might be limited to a certain amount per year.

At Qudos Bank, we have multiple home loan options available. Whether you’re looking to buy your first home, invest in a property, build a new home, renovate your property or refinance an existing loan, we can help you choose the right loan. Learn more about our options and compare home loan rates online.  

Home Loan Repayments FAQs

Can I pay out my home loan early?

This depends on the lender. Fixed rate loans generally prevent or limit extra repayments during the fixed rate period.

What is the difference between principal and interest and interest-only loans?

When applying for a home loan, there are two main repayment options to choose from — principal and interest repayments or interest-only repayments. These are the main differences between them:

• Principal and interest repayments — Home loans have two parts: the loan principal and the interest. If you choose principal and interest repayments, you’ll repay your principal balance and the interest it accrues periodically. Choosing this repayment option might mean you pay less interest over time as your principal balance reduces with each repayment.
• Interest-only repayments — This repayment option involves paying only the interest portion of the loan for a certain period while the principal amount stays the same. Once the interest-only period is over, you’ll need to begin repaying the principal. While this repayment option generally has lower repayment amounts during the interest-only period, you may end up paying more interest over the full life of the loan. During an interest only period, your interest only payments will not reduce your loan balance.

What is the difference between a fixed and variable loan?

When you take out a home loan, you usually have two choices — a fixed interest rate or a variable interest rate loan. These are the main differences between the two:

• Fixed home loans — These home loans have a set interest rate that remains the same for a specific period during the life of the loan. This means your required period repayments won’t change during that time. After the fixed period, you will revert to a variable rate.
• Variable rate loans — These home loans have interest rates that fluctuate over the life of the loan. Due to the interest rate variation, your required repayment amounts may change.