Borrow
How an extra $50 per week impacts your mortgage
New modelling has suggested that Australians with a $400,000 loan balance against their name could save tens of thousands in interest if they contribute an extra $50 per week to their mortgage.

How an extra $50 per week impacts your mortgage
New modelling has suggested that Australians with a $400,000 loan balance against their name could save tens of thousands in interest if they contribute an extra $50 per week to their mortgage.

New modelling from AMP showed that the extra $50, on top of regular repayments, would save four years and $46,992 in interest.
According to AMP’s modelling, the figures reveal that if people pay extra or keep their repayments at the same level as interest rate decreases, it has a significant impact on their future interest bill.
AMP Bank CEO Sally Bruce believes these extra payments could help Australians save thousands.
“Many people are unaware of the powerful impact extra repayments can make to their mortgage. With recent cuts to variable mortgage rates, home loan customers have a choice to make around whether to pocket the rate cut or save the extra money, or a portion of it, back into their home loan,” said Ms Bruce.
While this might not be realistic for everyone’s situation, anyone that can pay an additional $50 can greatly benefit.
“We know no two home loan customers are the same. We encourage anyone with a mortgage to consider their personal financial circumstances before deciding whether making extra repayments is right for them,” said Ms Bruce.
Adding $50: how the numbers stack up
AMP also applied the $50 method to other loan amounts, showing the marked difference the extra repayments make. They are as follows:
- $300,000 loan: Save $44,150 in interest and pay off the home loan five years and one month earlier.
- $400,000 loan: Save $46,992 in interest and pay off the home loan four years earlier.
- $500,000 loan: Save $48,887 in interest and pay off the home loan three years and four months earlier.
- $1,000,000: Save $53,203 in interest and pay off the home loan one year and nine months earlier.
This email address is being protected from spambots. You need JavaScript enabled to view it.
About the author

About the author


Loans
One in two Aussies does not believe banks act in their best interests when refinancing
Australians looking to take advantage of record-low interest rates are unlikely to speak with their bank, but have a high level of trust in mortgage brokers, new research has revealed. ...Read more

Loans
Home lending surge shatters records with $24bn in loans
The total value of loan commitments for investor housing rose 6 per cent month-on-month to reach $5.6 billion in November last year, as the property market heated up in the lead-up to Christmas. ...Read more

Loans
Mortgages slashed 6,777 times in 2020
Record-low interest rates have seen lenders make almost 7,000 cuts to home loans throughout 2020, but mortgage-holders and investors remain disinterested in getting a better rate, new research has rev...Read more

Loans
Aussies urged to avoid holiday debt
Christmas presents, New Year’s drinks, travel plans… December is an expensive time of year, but while the wallet can be on the slim side in January, Aussies are being urged to be careful when turn...Read more

Loans
Consumer groups slam axing of safe lending laws
One hundred and twenty-five organisations have banded together to oppose the federal government’s proposed relaxation of responsible lending laws, arguing it will hurt consumers and the broader e...Read more

Loans
‘Most Australians are through the worst’ as mortgage repayments resume
In a positive sign for the Australian economy, nearly 7 in 10 Australians who paused payments due to the COVID-19 pandemic have resumed repaying their mortgages, new figures have shown. ...Read more

Loans
Non-majors announce rate cuts
A number of non-major lenders have announced that they will pass on the full RBA rate cut to all existing variable rate home loan borrowers. ...Read more

Loans
Big 4 cut interest rates
Westpac, CBA, NAB and ANZ have all reduced their fixed rate home loans and some business loans following the Reserve Bank’s reduction of the official cash rate. ...Read more

Loans
One in two Aussies does not believe banks act in their best interests when refinancing
Australians looking to take advantage of record-low interest rates are unlikely to speak with their bank, but have a high level of trust in mortgage brokers, new research has revealed. ...Read more

Loans
Home lending surge shatters records with $24bn in loans
The total value of loan commitments for investor housing rose 6 per cent month-on-month to reach $5.6 billion in November last year, as the property market heated up in the lead-up to Christmas. ...Read more

Loans
Mortgages slashed 6,777 times in 2020
Record-low interest rates have seen lenders make almost 7,000 cuts to home loans throughout 2020, but mortgage-holders and investors remain disinterested in getting a better rate, new research has rev...Read more

Loans
Aussies urged to avoid holiday debt
Christmas presents, New Year’s drinks, travel plans… December is an expensive time of year, but while the wallet can be on the slim side in January, Aussies are being urged to be careful when turn...Read more

Loans
Consumer groups slam axing of safe lending laws
One hundred and twenty-five organisations have banded together to oppose the federal government’s proposed relaxation of responsible lending laws, arguing it will hurt consumers and the broader e...Read more

Loans
‘Most Australians are through the worst’ as mortgage repayments resume
In a positive sign for the Australian economy, nearly 7 in 10 Australians who paused payments due to the COVID-19 pandemic have resumed repaying their mortgages, new figures have shown. ...Read more

Loans
Non-majors announce rate cuts
A number of non-major lenders have announced that they will pass on the full RBA rate cut to all existing variable rate home loan borrowers. ...Read more

Loans
Big 4 cut interest rates
Westpac, CBA, NAB and ANZ have all reduced their fixed rate home loans and some business loans following the Reserve Bank’s reduction of the official cash rate. ...Read more