28/10/2026
Borrow $400,000 and you could pay back over $900,000. Here's why 👇
Every month the bank charges interest on what you still owe. At 6.5%, $2,167 of your first $2,528 repayment is interest. Only $361 comes off the loan.
So the balance falls slowly. After 360 repayments you've paid $910,178, and more than half of that is interest.
Variable rates usually follow the Reserve Bank's cash rate, now 4.6%. On this loan, a quarter of a percent rise adds about $66 a month. Paying an extra $100 a month from the start saves almost $64,000.
The Reserve Bank's next rate decision is Tuesday 3 November.
Example only: $400,000 loan, 30 years, principal and interest. General information, not financial advice. Talk to your lender or broker about your situation.
Xavier Stevens 0403 152 642
Area Specialist, Greater Shepparton