There are two parts to your mortgage repayment – the principal and the interest. This means you’re paying back the money you’ve borrowed (the principal) while also paying interest. Generally, your lender will spread the interest charges over time. Early in your loan term, a smaller proportion of your repayment will be reducing the loan principal.
At Suncorp Bank, home loan interest is calculated daily and charged on your monthly repayment due date. We multiply the remaining balance on your loan by your interest rate and divide it by 365 to determine daily interest. Use the calculator above to determine how much interest you’ll pay on your loan over time.