Your mortgage review
On the fictional figures in this example, holding your repayment at $4,398 a month could reduce the interest charged over the remaining term by about $356,718 and finish the mortgage about 6 years 10 months earlier.
This is the report the customer received, shown in the same layout they saw. It is kept exactly as it was sent and does not change when rates or wording are later updated.
- Mortgage balance
- $640,000
- Current interest rate
- 6.85% p.a.
- Remaining term
- 26 years
- Current repayment
- $4,398 per month
- Comparison rate used
- 5.29% p.a.
- Indicative repayment
- $3,745 per month
- Indicative interest reduction over the remaining term
- $356,718
- Possible term reduction
- 6 years 10 months
What the customer saw: mortgage balance over time
Both lines use the fictional balance of $640,000 and a repayment held at $4,398 per month. The current line uses 6.85%; the indicative alternative uses 5.29% with the $5,760 cash contribution applied to the loan.
- Current repayment
- $4,398
- Indicative repayment
- $3,745
- Monthly difference
- $653
- Current term
- 26 years
- Indicative term
- 19 years 2 months
- Potential term reduction
- 6 years 10 months
- Indicative interest reduction
- $356,718
- Cash contribution
- $5,760
Per month, as supplied
Per month, same term
Indicative
Remaining
If repayments are held
Indicative
Over the remaining term
Applied to the mortgage
Your review at a glance
Your current mortgage
You told us your mortgage is $640,000 at 6.85% p.a. with 26 years remaining, repaid monthly. Your fixed rate ends on 30 November 2026, so you can review the mortgage then without break costs. On those figures your repayment today is about $4,398 each month.
Scenario 1 - reduce repayments
At a comparison rate of 5.29% p.a. over the same remaining term, the repayment would be about $3,745 each month.
- About $653 less each month than you pay now
- Interest over the remaining term about $197,854 lower
- The mortgage still finishes at the end of the current 26 year term
Scenario 2 - keep paying about the same
If you kept the repayment at $4,398 a month at the lower rate:
- The mortgage could finish about 6 years 10 months earlier, in about 19 years 2 months
- Interest over the remaining term about $356,718 lower
- You can also split the difference between a lower repayment and a shorter term
Your mortgage balance over time
The graph above shows your current mortgage against the indicative alternative with the repayment held at today's level. The alternative line reaches zero earlier because more of each repayment goes to principal.
The indicative alternative modelled
- Comparison rate: 5.29% p.a. fixed
- Cash contribution modelled: $5,760, applied to the loan
- Same lender fees, same repayment frequency, no change to the loan structure
Where the potential benefit comes from
- A lower interest rate on the same balance
- A cash contribution reducing the balance at the start
- Holding the repayment so the saving pays down principal instead of interest
Important information
These figures are indicative only. They are generated from the information supplied and rates published at the time, and they are not financial advice, a quote, a pre-approval or a lender offer. Your actual rate, cash contribution, repayment and eligibility must be confirmed by a registered financial adviser and the lender.