Home Loan Repayment Calculator Bankwest Bank

Bankwest Home Loan Repayment Formula:

\[ PMT = P \times \frac{r \times (1 + r)^n}{(1 + r)^n - 1} \]

Monthly Repayment (PMT):

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1. What is the Bankwest Home Loan Repayment Formula?

The Bankwest home loan repayment formula calculates the fixed monthly payment required to fully repay a home loan over its term. It accounts for the principal amount, interest rate, and loan duration.

2. How Does the Calculator Work?

The calculator uses the standard amortization formula:

\[ PMT = P \times \frac{r \times (1 + r)^n}{(1 + r)^n - 1} \]

Where:

\( P \) — Principal loan amount (AUD)
\( r \) — Monthly interest rate (annual rate ÷ 12)
\( n \) — Total number of payments (loan term in years × 12)
\( PMT \) — Monthly repayment amount (AUD)

Explanation: The formula calculates the fixed payment that covers both principal and interest each month, ensuring the loan is paid off by the end of the term.

3. Importance of Repayment Calculation

Details: Understanding your monthly repayment helps with budgeting, comparing loan options, and assessing affordability before committing to a mortgage.

4. Using the Calculator

Tips: Enter the loan amount in AUD, annual interest rate (typically 6.49% for Bankwest), and loan term in years. The calculator assumes principal-and-interest repayments.

5. Frequently Asked Questions (FAQ)

Q1: What is Bankwest's typical interest rate?
A: As of 2023, Bankwest's standard variable home loan rate is around 6.49% p.a., but this can vary based on loan product and customer circumstances.

Q2: Does this include other loan costs?
A: No, this calculates principal and interest only. It doesn't include fees, charges, or mortgage insurance which may apply.

Q3: How accurate is this calculator?
A: It provides a good estimate for fixed-rate or standard variable loans. For more complex products like interest-only loans, consult Bankwest directly.

Q4: Can I calculate fortnightly repayments?
A: For fortnightly repayments, divide the monthly amount by 2 (but you'll make 26 payments per year instead of 12 monthly payments).

Q5: What if I make extra repayments?
A: Extra repayments reduce the principal faster, potentially saving interest and shortening the loan term. This calculator shows the standard repayment schedule.