Home Loan Repayment Calculator St George Australia

Loan Repayment Formula:

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

Monthly Repayment (PMT):

Total Interest:

Total Repayment:

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1. What is the Home Loan Repayment Formula?

The home loan repayment formula calculates the fixed monthly payment required to fully repay a loan over its term, including principal and interest. This is the standard formula used by St George Bank and most Australian lenders for principal-and-interest home loans.

2. How Does the Calculator Work?

The calculator uses the loan repayment 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 ÷ 100)
\( n \) — Total number of monthly payments (years × 12)
\( PMT \) — Monthly repayment amount (AUD)

Explanation: The formula accounts for compound interest over the life of the loan, ensuring each payment covers both interest and principal reduction.

3. Importance of Loan Repayment Calculation

Details: Understanding your monthly repayment helps with budgeting and assessing loan affordability. It also shows the total interest cost over the loan term.

4. Using the Calculator

Tips: Enter loan amount in AUD, St George's current interest rate (typically around 6.74% p.a.), and loan term in years. The calculator will show monthly repayments and total costs.

5. Frequently Asked Questions (FAQ)

Q1: What is St George's typical interest rate?
A: As of 2024, St George's standard variable rate is typically around 6.74% p.a., but this varies based on market conditions and individual circumstances.

Q2: Does this include other loan costs?
A: This calculates principal and interest only. Additional costs like establishment fees, LMI, or property taxes aren't included.

Q3: How does repayment frequency affect the loan?
A: More frequent payments (e.g., fortnightly) can reduce total interest and shorten the loan term, though this calculator shows monthly payments.

Q4: What if I get an interest-only loan?
A: Interest-only payments are calculated differently (P × r). This calculator is for principal-and-interest loans.

Q5: Can I calculate extra repayments?
A: This shows standard repayments. Extra payments would require a more complex amortization calculator.