Extra Repayment Calculator
Find out how much interest you could save by making a few extra repayments, and how soon you could pay off your mortgage to become debt free!
Even a small increase in your regular repayments can make a massive difference to your financial future. Use the Westgate Home Loans extra repayment calculator to see how much interest you could save and how many years you could shave off your mortgage.
Why Make Extra Repayments?
With the current interest rate environment, every extra dollar you put into your loan works twice as hard. By reducing your principal balance faster, you’re not just saving on interest – you’re also building a safety buffer against future market shifts.
The Power of Small & Frequent Payments
- Interest Savings: Interest is calculated daily. The sooner you reduce the principal, the less interest you accrue every single day.
- Loan Term Reduction: Adding just $50 a week could potentially cut years off a 30-year mortgage.
- Build Equity Faster: Increasing your repayments helps you reach the 20% equity milestone sooner, which can unlock better refinancing rates in the future.
Frequently Asked Questions (Extra Repayments Calculator)
Q. Does making extra repayments actually save me money on interest?
A. Absolutely. Interest on your home loan is calculated daily based on your remaining principal balance. When you make an extra repayment, you immediately reduce that balance. This means the very next day, the amount of interest you are charged drops. Over the life of a 30-year loan, even small, consistent extra payments can save you tens of thousands of dollars in total interest charges.
Q. Are there any fees for making extra repayments at Westgate?
A. For our variable rate customers, you can make unlimited extra repayments at any time with zero fees or penalties. If you are on a fixed rate loan, there is typically an annual limit on how much extra you can pay (often up to $20,000 per year) before break fees may apply. We recommend checking your specific loan summary or chatting with our support team before making a large lump-sum payment on a fixed-rate product.
Q. What is the difference between an extra repayment and an offset account?
A. An offset account is a separate transaction account linked to your mortgage; the balance in that account is “offset” against your loan for interest calculations. While both save you interest, an offset account keeps your cash accessible for emergencies, whereas extra repayments are usually redrawn (subject to your loan’s redraw facility terms).
