Description

This calculator helps you compare interest-only mortgage payments with principal and interest payments, and shows the impact on your loan balance over time.

Assumptions

• It does not take into account any possible fees i.e. up-front fees or ongoing fees.
• Interest rates do not change over the loan term.
• Repayment frequency selected (i.e. weekly, fortnightly, monthly) is applied consistently throughout the loan term.
• It is assumed that a year consists 26 fortnights or 52 weeks which is equivalent to 12 months in a year.
• No rounding of the actual payment amount is done to keep the "term" strict in practice.
• After the interest-only period ends, the loan reverts to principal and interest payments for the remainder of the loan term.
• Principal and interest payments are calculated based on the remaining loan term after the interest-only period.