Lump Sum Repayment Calculator
Use our calculator to find out how a lump sum repayment will reduce your interest and remaining term on your loan.
How does a lump sum repayment help reduce your loan term?
When you make a lump sum repayment on your home loan, this benefits you in two ways. Firstly it reduces the principal (balance owing) on your loan meaning this does not need to be paid back at a later date. Secondly as the lump sum reduction means that you will not be charged on that amount which was originally calculated when the loan was established, so each of your repayments will be paying slightly more principal than originally calculated. As time goes on this in turn pays off additional principal creating a compounding interest saving over the life of the loan.
Do you need assistance finding out how a lump sum repayment and other tips can help pay your home loan off sooner? Speak with a broker today.
Disclaimer: The calculations do not take into account all fees and charges. The results provided by this calculator are an estimate only, and should not be relied on for the purpose of making a decision in relation to a loan. Interest rates and other costs can change over time, affecting the total cost of the loan. Borrowers should consider discussing their individual situation with a qualified Australian Credit Licensee or authorised Credit Representative.