Mortgage Repayments

There are countless websites online offering advice and guidance related to mortgages; and just as many financial experts hoping to offer their services to those in need. But what people really seem to be lacking is an example of a fair mortgage repayment plan – one that they can base their own efforts off of.

Going to a mortgage broker for help can be a great solution, but just imagine how much of a head start you would have if you had an effective framework to base your judgement on

Calculate Rates for Best DealWe’ve decided to put together this example to help you to compare your own financial capabilities. We’ll be basing it on the cost of an average home in Melbourne, which as of late 2016 was up 8.5% to $590,000. You can simply modify the amounts in each section to better suit your own situation at the time of application.


If you were to approach a mortgage broker and they were able to help you to apply to a bank for $590,000 at an interest rate of 1.5%, you will first need to address the cost of the deposit. If the lender requires a deposit of 20%, then you will need to accumulate $118,000 toward the cost of your loan. Therefore, the lender will be providing you with the remaining $472,000.

This is quite a large sum to repay, so we’d advise you to prolong your repayment duration for as long as possible. Your lender will consider your age at the time of application and then propose a term for you to either accept, or negotiate. If they propose a repayment period of 25 years, this can be broken down into 300 individual payments (at 12 months per year, over the course of 25 years).

You will therefore be expected to repay $1,573 before interest, or roughly $1,590 with interest applied on top. Considering the sum that’s been borrowed, this is a very fair repayment plan and one that the majority of Australian residents in full time work will be able to afford with little to no difficulty.

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