Interest-Only Mortgage Calculator

This Calculator helps you work out:

• The repayments before and after the interest-only period

• The total cost of an interest-only mortgage

• How much m ore you will pay with an interest-only mortgage compared to a principal and interest loan

For detailed information see disclaimers and assumptions below.

Disclaimers

• This is a model, not a prediction.  Amounts and repayment periods are estimates only, actual amounts may be higher or lower.

• Results are based on information you have provided and does not take your personal circumstances into account.

• This calculator applies to loans which have an interest-only period, then for the remaining period of the loan, both principal (amount borrowed) and interest are repaid.

• Initial inputs will be displayed on the left-hand side of the calculator

• The graph displays the periodic repayments for an interest-only loan and the repayments for a comparable principal and interest loan with the same amount borrowed, interest rate, repayment frequency and fees as the interest-only loan.

• This calculator is not intended to be your sole source of information when making a financial decision.  You should consider whether you should get advice from a licensed financial adviser.

• Using this calculator does not guarantee you will be eligible for a loan.  You will need to satisfy your lenders lending criteria.

Assumptions

• Interest rates do not change for the life of the loan.

• Interest is calculated by compounding on the same frequency as the repayment period selected ie weekly, fortnightly, monthly, quarterly or annually.

• It does not take into account up-front fees such as loan establishment fees.

• It does not consider your ability to make the repayments shown.  To help you consider the impact of interest rate changes we suggest exploring the impact of a 2% interest rate rise.  Interest rates could rise in the future by more than 2%.

• Affordable repayments cannot be less than the fees entered.