Using a lump sum payment calculator can help you understand how much time and interest you can save on your home loan.

This allows you to better compare your options when you have extra money available to potentially put on your home loan or spend elsewhere. Lump sum repayments can be a smart choice, depending on your personal circumstances, financial situation and your financial goals.


What are lump sum payments?

A lump sum repayment is making a home loan payment on top of your regular home loan repayments.

Making a lump sum repayment reduces the balance of your loan. Interest is calculated based on your loan balance, lowering it means less interest charged over the life of the loan.

Paying less interest means that you can potentially shorten the life of the loan, paying off your mortgage sooner!

Are lump sum payments worth it?

It really depends on your personal situation, using the lump sum payment calculator you can accurately estimate the interest savings you will make on your home loan over the life of the loan.

Not all home loans allow lump sum or extra repayments, or they have limitations. Offset accounts are an alternative way to save money by reducing your interest payable on your home loan, plus the funds are available at-call.

Please seek professional advice when making an important financial decision. The information in this article is general in nature and does not constitute as personal advice.