Your monthly home loan repayment
A principal-and-interest loan is repaid in equal monthly amounts. Early on, most of each repayment is interest; later, more goes to principal. The repayment combines the loan amount (price minus deposit), the rate and the term. Most Australian loans are variable rate.
Budget also for LMI (under a 20% deposit), stamp duty and fees.
Common questions
Principal and interest on the loan. It excludes Lenders Mortgage Insurance (often required under a 20% deposit), stamp duty, and ongoing fees.
Typically 20% to avoid LMI, though many lenders accept less. A bigger deposit lowers the repayment and total interest.
Most Australian home loans are variable rate, so repayments change when the RBA moves rates. This assumes a constant rate for the estimate.