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At the current average variable rate of 6.22%, monthly repayments on a $600,000 home loan are:30-year term: $3,800/month (P&I)25-year term: $4,059/month (P&I)Interest-only: $3,260/monthChoosing the 25-year term adds $259/month but saves approximately $150,300 in total interest —
| Term | Monthly P&I | Monthly Interest-Only |
|---|---|---|
| 30 years | $3,800/mo | $3,260/mo |
| 25 years | $4,059/mo | — |
Based on average variable rate. Use our mortgage repayment calculator for an exact figure at your rate.
Typically $100,000–$120,000 gross annual income for a single applicant with minimal debts. Joint applicants earning a combined $100,000+ with low debts would usually qualify.
An extra $200/month on a $600,000 loan saves approximately $120,000 in interest and takes 4 years off the loan. An extra $500/month saves $245,000 and 8 years.
Ideally both. An offset account gives you flexible access to your money while reducing interest daily. Extra (voluntary) repayments permanently reduce the principal. Together, they maximise savings.
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