With the cost of living in Australia increasing by the day, it is not surprising that many people are struggling to make their mortgage payments each month. Not only are there rising costs associated with everyday living, but mortgages are also becoming more expensive as interest rates continue to rise.

Many of our Sunshine Coast clients have explained their mortgage payments on their investment property have increased as much as $500 a week. That number is staggering. While rents have also been increasing, they have not been increased by $500 per week to cover this additional expense. That’s fair enough too, it’s not a tenant’s job to fully pay for a property’s mortgage, it never has been. 

I realise it’s easy for tenants to call property investors greedy. Truth is they are not greedy, most just want to charge what the current market rent is and what I know is the rent being paid certainly doesn’t cover the mortgage. 

In order to better understand how much your mortgage payments have gone up on the Sunshine Coast, it is important to know how to use a mortgage calculator. This article will provide an overview of what a mortgage calculator is, the benefits of using one, how to use a Mortgage Calculator, the latest mortgage rate changes in Australia, what to consider when calculating your mortgage payments, the impact of mortgage rate changes on your repayments, the different loan types and their relevant calculations, and other factors to consider when calculating your mortgage payments.

WHAT IS A MORTGAGE CALCULATOR?

A mortgage calculator is an online tool that allows you to quickly and accurately calculate the cost of a home loan. It takes into account a range of factors, including the loan amount, loan term, interest rate, and repayment frequency to give you an estimate of your total loan repayments.

Mortgage calculators are incredibly useful for those who are looking to buy a home, as they can help you to determine what your monthly repayments will be, and how much you can afford to borrow. This can help you to make an informed decision about your home loan before you commit to it.

BENEFITS OF USING A MORTGAGE CALCULATOR

There are numerous benefits of using a mortgage calculator, such as:

• You can easily compare different loan options to find the best deal for you.
• You can determine how much you can borrow and what your repayments will be.
• You can accurately calculate your repayment amounts.
• You can calculate the total cost of your loan over its lifetime.
• You can factor in additional costs, such as insurance and stamp duty.

Using a mortgage calculator can help to take the guesswork out of buying a home and give you a better idea of what you can afford.

HOW TO USE YOUR MORTGAGE CALCULATOR

YourMortgageCalculator is an easy-to-use online mortgage calculator which allows you to quickly and accurately calculate your mortgage repayments. All you need to do is enter in your loan amount, loan term, interest rate, and repayment frequency and YourMortgageCalculator will do the rest.

YourMortgageCalculator also provides you with a range of useful features, such as the ability to factor in additional costs, an option to compare different loan options, and an easy-to-understand repayment schedule.

THE LATEST MORTGAGE RATE CHANGES IN AUSTRALIA

Mortgage rates in Australia have seen some significant increases over the last 12 months. Interest rates are now higher than they have even been in the last 10 years. 

WHAT TO CONSIDER WHEN CALCULATING YOUR MORTGAGE PAYMENTS

When calculating your mortgage payments, there are a few important factors to consider. The most important factor is the interest rate, as this will determine how much you pay in interest over the life of the loan.

You should also take into account the loan term, which is the length of time you have to repay the loan. The loan term will affect your total loan cost, as a longer loan term will mean lower monthly repayments but more interest paid over the life of the loan.

Your repayment frequency is also important, as this will affect how quickly you pay off the loan. You can choose between fortnightly and monthly repayments, and it is important to consider which option is best for you.

THE IMPACT OF MORTGAGE RATE CHANGES ON YOUR REPAYMENTS

Mortgage rates can have a significant impact on your repayments, as a lower rate means lower repayments and a higher rate means higher repayments.

THE DIFFERENT LOAN TYPES AND THEIR RELEVANT CALCULATIONS

When calculating your mortgage payments, it is important to consider the different loan types and their relevant calculations. The most common loan types are fixed-rate and variable-rate loans.

Fixed-rate loans allow you to lock in an interest rate for a specific period of time, meaning your repayments will remain the same for this period. Variable rate loans, on the other hand, allow you to take advantage of any rate changes, but your repayments can also go up as well as down.

The type of loan you choose will affect your mortgage payments, so it is important to understand the different loan types before you apply.

OTHER FACTORS TO CONSIDER WHEN CALCULATING YOUR MORTGAGE PAYMENTS

Aside from the loan type, there are a few other factors to consider when calculating your mortgage payments. For example, you should factor in any additional costs, such as insurance and stamp duty, as these can significantly increase the total cost of your loan.

Your income is also a key factor to consider, as this will affect how much you can borrow and what your repayments will be. It is important to ensure that your repayments are affordable for your budget.

HOW TO PAY OFF A 25-YEAR LOAN IN 10 YEARS?

If you pay the minimum payments on a 25-year loan it will take you 30 years to pay it off. However, you can use the Sunshine Coast Financial Solutions mortgage calculator here to work out how much more you need to pay weekly if you want to pay off the same loan in 10 years you can see the results below are staggering. 

$500,000 borrowed @ 5.10% you will need to pay $683 a week to pay it off in 25 years.

$500,000 borrowed @ 5.10% you will need to pay $1,260 a week to pay it off in 10 years.

While that’s a lot more to pay weekly if you did this you would pay a total of around $140k in interest. Paying the same loan over 25 years the interest would be a staggering $390k. If you are able to pay the loan off over 10 years you would have saved yourself an impressive $250,000.

YOUR MORTGAGE CALCULATOR SERVICES

While every bank has an online calculator the one I prefer is on the Sunshine Coast Financial Solutions site here. 

NEED MORE THAN JUST A MORTGAGE CALCULATOR?

Too busy or need to know more than what a calculator can offer? Reach out to Chris here in the Sunshine Coast. A mortgage broker with Sunshine Coast Financial Solutions, he’s a top guy, a top broker & will do the right thing to buy you. Chris is on Chris@scfsolutions.com.au or 0424 637 001.