Case Study: An extra $50 per week took 5 years off their home loan
- TheLendingTeam
- May 28
- 2 min read
This deceasing interest rate market brings a unique opportunity to revisit how increasing your repayments could help you repay your home loan faster.
Our clients fixed rate was up for renewal in March 2025, they were fixed at 7.90% with their minimum loan repayments at $778 per week.
Standard interest rates had decreased since they purchased their first home a year ago with a less than 20% deposit, however our client was comfortable with their current repayments.
After discussing their personal circumstances and goals with their adviser, they decided to refix for 1 year at 5.59% - This was the standard rate as the LVR was still above 80%.
The new minimum repayments were estimated at $616 per week.
After discussing different strategies on how we could repay their debt faster, our client decided to pay an additional $50 per week. This was within the 5% extra repayment allowance permitted by their home loan provider.
This made their weekly repayments $666 per week, still ~$100 less than the repayments they had adjusted to paying.
This decision is estimated to save them $89,304 in interest and repay the loan 4 years 9 months quicker.
Before hitting the refix button, this deceasing interest rate market brings a unique opportunity to revisit how increasing your repayments could help you repay your home loan faster. It’s important to note there are different strategies to explore with your financial adviser and each home loan provider has their own terms and conditions when it comes to additional repayments. Before making any changes to your structure we recommended checking with your financial adviser first.
Want to explore how extra repayments can impact your home loan?
Use our extra repayment calculator featured above at the link below:
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