1. What is the Unloan Home Loan?

Unloan is a digital lender by Commonwealth Bank of Australia offering competitive home loan rates (~6.24% p.a. as of 2023). It provides simple, low-rate variable home loans with no application or ongoing fees.

2. How Does the Calculator Work?

The calculator uses the standard home loan repayment formula:

Where:

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

Explanation: This formula calculates the fixed monthly payment required to fully repay a loan over its term, including both principal and interest components.

3. Understanding Home Loan Repayments

Details: Your monthly repayment is determined by the loan amount, interest rate, and loan term. Early in the loan, most of your payment goes toward interest rather than principal.

4. Using the Calculator

Tips: Enter your loan amount in AUD, the annual interest rate (Unloan's current rate is ~6.24%), and your desired loan term in years. The calculator will show your estimated monthly repayments.

5. Frequently Asked Questions (FAQ)

Q1: How does Unloan compare to CBA home loans?
A: Unloan offers similar rates to CBA but with a simpler digital experience and no application or ongoing fees.

Q2: Are there any fees with Unloan?
A: Unloan has no application fees, monthly fees, or early repayment fees, but standard government charges may apply.

Q3: Can I make extra repayments?
A: Yes, Unloan allows unlimited extra repayments without penalty, which can reduce your total interest paid.

Q4: Is the interest rate fixed or variable?
A: Unloan offers variable rate home loans only, meaning your rate and repayments may change over time.

Q5: How accurate is this calculator?
A: This provides estimates only. Actual repayments may vary based on specific loan terms and rate changes.