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.
RELATED ARTICLES
About the author
About the author
Loans
Fixing the future: How brokers and lenders can turn rate-hike anxiety into strategic advantage
Australian borrowers are leaning into short-term fixed loans as rate uncertainty lingers, shifting risk from households to lenders and their funding partners. That creates a narrow window for broker ...Read more
Loans
Mortgage mania: Why sluggish turnaround times are the new battleground in booming loan demand
Brokers across Australia are flagging loan processing delays precisely as borrower activity rebounds — a dangerous mismatch for lenders competing on service as much as price. The operational lesson is ...Read more
Loans
Why AI isn't penning Aussie mortgages yet trust trumps tech
Australian borrowers remain wary of AI taking the wheel on home loans, even as brokers and lenders quietly increase behind-the-scenes adoption. The trust gap is the core blocker — and it’s solvable. ...Read more
Loans
Underserved by design: A case study in turning FBAA broker density gaps into growth
Fresh FBAA data confirms broker headcount is rising past 22,000, yet coverage remains uneven — with concentrations in NSW and Victoria and pockets the association identifies as underservedRead more
Loans
The new shadow lender: How the ‘Bank of Mum and Dad’ is redrawing Australia’s first-home buyer market
Parental capital has become a decisive force in Australia’s housing market, accelerating deposits, lifting bidding power and creating a two‑speed pipeline of first‑home buyers. This isn’t a feel‑good ...Read more
Loans
The effortless edge: How Australian brokers turn retention into a compounding growth engine with AI and specialisation
Australia’s broking market is crowded, digital-first and unforgiving on acquisition costs. The growth story now is retention—engineered through low-effort client experiences, AI-enabled servicing and ...Read more
Loans
State Street: RBA holds rates at 3.6% as hawkish tone emerges
State Street has said the Reserve Bank of Australia’s (RBA) decision to hold the cash rate at 3.6 per cent reflects a more hawkish policy bias, signalling that the central bank is likely to keep rates ...Read more
Loans
The effortless edge: How brokers turn low-friction service into high-retention value
Client retention in broking is no longer about squeezing a better rate at renewal. It’s about building an ‘effortless’ experience that anticipates needs, removes friction, and compounds loyalty across ...Read more
Loans
Fixing the future: How brokers and lenders can turn rate-hike anxiety into strategic advantage
Australian borrowers are leaning into short-term fixed loans as rate uncertainty lingers, shifting risk from households to lenders and their funding partners. That creates a narrow window for broker ...Read more
Loans
Mortgage mania: Why sluggish turnaround times are the new battleground in booming loan demand
Brokers across Australia are flagging loan processing delays precisely as borrower activity rebounds — a dangerous mismatch for lenders competing on service as much as price. The operational lesson is ...Read more
Loans
Why AI isn't penning Aussie mortgages yet trust trumps tech
Australian borrowers remain wary of AI taking the wheel on home loans, even as brokers and lenders quietly increase behind-the-scenes adoption. The trust gap is the core blocker — and it’s solvable. ...Read more
Loans
Underserved by design: A case study in turning FBAA broker density gaps into growth
Fresh FBAA data confirms broker headcount is rising past 22,000, yet coverage remains uneven — with concentrations in NSW and Victoria and pockets the association identifies as underservedRead more
Loans
The new shadow lender: How the ‘Bank of Mum and Dad’ is redrawing Australia’s first-home buyer market
Parental capital has become a decisive force in Australia’s housing market, accelerating deposits, lifting bidding power and creating a two‑speed pipeline of first‑home buyers. This isn’t a feel‑good ...Read more
Loans
The effortless edge: How Australian brokers turn retention into a compounding growth engine with AI and specialisation
Australia’s broking market is crowded, digital-first and unforgiving on acquisition costs. The growth story now is retention—engineered through low-effort client experiences, AI-enabled servicing and ...Read more
Loans
State Street: RBA holds rates at 3.6% as hawkish tone emerges
State Street has said the Reserve Bank of Australia’s (RBA) decision to hold the cash rate at 3.6 per cent reflects a more hawkish policy bias, signalling that the central bank is likely to keep rates ...Read more
Loans
The effortless edge: How brokers turn low-friction service into high-retention value
Client retention in broking is no longer about squeezing a better rate at renewal. It’s about building an ‘effortless’ experience that anticipates needs, removes friction, and compounds loyalty across ...Read more
