Question 1

How are weekly and fortnightly repayments calculated?

Accepted Answer

Weekly repayments are calculated using 52 periods per year. Fortnightly repayments use 26 periods per year. Monthly repayments use 12 periods per year. Each frequency uses its own independent calculation — weekly and fortnightly figures are not derived by dividing a monthly amount.

Question 2

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

Accepted Answer

A principal and interest loan requires repayments that reduce the loan balance over the loan term. Each repayment includes both an interest component and an amount that reduces the principal. An interest only loan requires repayments that cover only the interest charged for the period. The principal balance does not reduce during the interest only period. Interest only periods are commonly for a fixed term, after which repayments typically convert to principal and interest.

Question 3

How do extra repayments reduce interest and loan term?

Accepted Answer

Making repayments above the minimum reduces the outstanding loan balance faster. Because interest is calculated on the remaining balance, a lower balance means less interest is charged each period. This can reduce the total interest paid over the life of the loan and may shorten the loan term. The actual benefit depends on the loan terms, lender policy and whether extra repayments are permitted without penalty.

Question 4

Are calculator results guaranteed?

Accepted Answer

No. All calculator results are estimates only. They are provided for general information purposes and do not constitute financial advice, a loan offer, or a guarantee of loan approval or repayment amounts. Actual repayments will depend on your lender, loan product, interest rate, fees and individual circumstances.

Question 5

Does the calculator include lender fees?

Accepted Answer

No. The mortgage repayment calculator calculates loan repayments based on the principal, interest rate and loan term entered. It does not include lender establishment fees, ongoing fees, account-keeping fees, discharge fees or other charges. Always confirm all fees and charges with your lender.

Question 6

What is the difference between an interest rate and a comparison rate?

Accepted Answer

The interest rate is the base rate charged on the loan amount. The comparison rate is a standardised rate that includes the interest rate plus most fees and charges, expressed as a single annual percentage. The comparison rate is designed to help borrowers compare loans on a more like-for-like basis. The comparison rate is calculated on a specific loan amount and term, which may differ from your circumstances.

Question 7

Why may a lender's repayment figure differ from the calculator?

Accepted Answer

Lenders may use slightly different calculation methods, rounding conventions, payment timing assumptions, or may include fees within their repayment figures. The rate a lender applies to your loan may also differ from the rate you entered. Always confirm repayment figures directly with your lender before relying on any estimate.

Question 8

How much deposit do I need to buy property in Australia?

Accepted Answer

Deposit requirements vary between lenders, loan products, property types and borrower circumstances. A 20% deposit is a commonly used savings target, but some lenders may accept a smaller deposit from eligible borrowers. A smaller deposit generally results in a higher Loan-to-Value Ratio and may attract Lenders Mortgage Insurance or additional lending conditions. See our guide: How Much Deposit Do You Need to Buy Property in Australia?

Question 9

Is a 20% deposit compulsory?

Accepted Answer

No. A 20% deposit is not a universal legal requirement. It is a common benchmark used in lending because borrowing above 80% LVR may attract Lenders Mortgage Insurance with many lenders. Some lenders may accept smaller deposits subject to their lending criteria and conditions.

Question 10

What is Loan-to-Value Ratio?

Accepted Answer

Loan-to-Value Ratio, or LVR, is the loan amount expressed as a percentage of the lender's assessed property value. For example, borrowing $640,000 against a property valued at $800,000 results in an 80% LVR. Lenders use LVR as one measure of lending risk. The lender's valuation may differ from the purchase price.

Question 11

Why is an 80% LVR commonly discussed?

Accepted Answer

Many lenders use 80% LVR as a threshold above which Lenders Mortgage Insurance may apply, or where additional lending conditions may be imposed. Borrowing at or below 80% LVR means the borrower has a deposit of at least 20% of the lender's assessed value. This is a general guide only — lender policies vary.

Question 12

What is Lenders Mortgage Insurance?

Accepted Answer

Lenders Mortgage Insurance, commonly called LMI, is insurance that protects the lender if a borrower defaults and the property is sold for less than the outstanding loan balance. It does not protect the borrower or remove the borrower's obligation to repay any remaining debt. LMI may apply when a borrower has a higher LVR, commonly above 80%, although requirements vary between lenders.

Question 13

Does LMI protect the borrower?

Accepted Answer

No. LMI protects the lender, not the borrower. If a borrower defaults and the lender recovers less than the outstanding balance from the sale of the property, LMI covers the lender's shortfall. The borrower may still be liable for any remaining debt after the property is sold.

Question 14

Is the deposit the same as total upfront funds?

Accepted Answer

No. The deposit forms part of the property purchase price, but buyers may also need funds for transfer duty (stamp duty), conveyancing or solicitor fees, building and pest inspections, lender fees, mortgage registration fees, Lenders Mortgage Insurance where applicable, moving expenses, settlement adjustments and initial repairs or improvements. The total funds required at settlement are generally higher than the deposit amount alone.

Question 15

Why are stamp duty and government fees not yet shown?

Accepted Answer

Transfer duty (stamp duty) rates, thresholds, concessions and exemptions vary significantly between states and territories and are subject to change. We do not display these figures until we can verify current rates from official state and territory revenue office publications. Accuracy is more important to us than completeness. We will add this information when it can be confirmed for each jurisdiction.

Question 16

What other buying costs should I allow for?

Accepted Answer

In addition to the deposit, common upfront costs may include: transfer duty (stamp duty), conveyancing or solicitor fees, building and pest inspection fees, lender establishment and application fees, mortgage registration fees, Lenders Mortgage Insurance (if applicable), title search fees, moving costs, settlement adjustments (rates, water, body corporate) and initial repairs or improvements. Costs vary depending on the state or territory, property type, lender and buyer circumstances.

Question 17

Can I use a First Home Owner Grant as part of my deposit?

Accepted Answer

Possibly, but this depends on the state or territory, the timing of the grant payment and the lender's policy. A lender may not treat a government grant in the same way as genuine savings, and buyers may need sufficient funds in place before the grant is paid. Confirm current rules with the relevant government authority, your lender or a licensed mortgage broker before relying on a grant as part of your purchase funds.

Question 18

Are first-home buyer grants available in every state?

Accepted Answer

Grant availability, amounts, eligibility criteria and property value thresholds vary between states and territories and are subject to change. We do not display grant amounts or eligibility rules on this website as these change frequently. Always check with the relevant state or territory revenue or grants office for current information.

Question 19

Can government schemes reduce the deposit required?

Accepted Answer

Some Australian Government and state government schemes are designed to assist eligible first home buyers with deposit requirements or mortgage costs. Eligibility criteria, scheme availability and terms vary and are subject to change. Confirm current scheme details with the relevant government authority or a licensed mortgage broker.

Question 20

Should I rely on grant or concession information from this website?

Accepted Answer

No. This website does not display grant amounts, concession rates or eligibility criteria for government schemes. This information changes frequently across different states and territories. Always verify current details directly with the relevant government authority, your lender or a licensed mortgage broker.

Question 21

Are the calculators free to use?

Accepted Answer

Yes. All calculators on this website are free to use. No subscription, payment or registration is required.

Question 22

Do I need to create an account?

Accepted Answer

No. The calculators are fully accessible without creating an account or providing any personal information.

Question 23

Are my calculator inputs stored?

Accepted Answer

Calculator inputs are processed in your browser and are not intentionally stored or linked to personal information. No account is required to use the calculators. See our Privacy Policy for further information about how data is handled on this website.

Question 24

How are contact form details used?

Accepted Answer

Contact form submissions are used to respond to your enquiry. Your details are not used for marketing without your consent and are not sold to third parties. See our Privacy Policy for full details.

Question 25

Does the website provide financial advice?

Accepted Answer

No. This website provides general information only. It does not constitute financial, credit, legal, taxation or other professional advice. Calculator results are estimates only and do not take into account your personal objectives, financial situation, needs or circumstances. Before making a financial decision, consult a licensed financial adviser, mortgage broker, lender, conveyancer or solicitor.

Question 26

How can I report a calculator error?

Accepted Answer

If you believe a calculator result may be incorrect, please contact us with the inputs you used and the result you received. We will review and respond as soon as reasonably possible.

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