Housing
Interest-only, then principal
Why this matters. Interest-only months keep the balance where it is, then principal-and-interest starts on what is left. The page shows both payments from the rate you type. It does not say which structure a bank will offer.
The repayment during the interest-only years, and what it becomes after. The balance does not fall while you pay interest only.
After 5 years
$5,154 / moExample rate you typed
Up from $4,000 / mo during interest-only. Jump $1,154.
- Interest-only
- $4,000 / mo
- Principal and interest from day one
- $4,796 / mo
- Extra interest vs paying principal from day one
- $59,618
- Principal left when interest-only ends
- $800,000
Next: Mortgage — Principal and interest, with extra each month and a lump sum.
What doctors often miss
Interest-only repayments do not reduce the amount borrowed. The principal is still there when that period ends.
Included / Not included
Included
- Interest-only repayments for the years you set, then principal and interest on what is left · Example assumption, editable
Not included
- Rate changes, fees, offset, tax deductibility, and inflation
- Insurance and stamp duty
Assumptions you can edit are the inputs on this page. This is a model, not a prediction, a tax assessment, or a recommendation.
A rough figure — not advice. Terms
Also
Advertisement — labelled, never inside the number.