Guest PEZ

Mortgage Repayments

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    Guest PEZ

    What sort of monthly repayment would we pay if we borrowed the equivalent of £140k in Adelaide.

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    Guest guest569

    Without getting a calculater out or looking at exchange rates i would say $2000 a month. Did you know you can get your payments down by paying fortnightly or weekly rather than monthly ??? How strange is that !!!:biglaugh:

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    Guest katsmajic

    But if you pay weekly you can almost halve the time/years of the mortage!

    If you pay over a longer period its probably lower payments but youre only paying masses of interest.

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    Whatever amount you borrow, do consider weekly/fortnightly payments. The mortgage terms start at 25/30 years, by paying more frequently you can bring that down to 12/14 years which is well worth it in the long run. Good luck.

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    our mortgage is for $275k we pay around $775 a fortnight we could actually pay $650 but chose to keep our payements higher at last interest rate change to pay off quicker, hope this helps x

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    Guest tooeasy
    But if you pay weekly you can almost halve the time/years of the mortage!

    If you pay over a longer period its probably lower payments but youre only paying masses of interest.

     

    yes we pay weekly and our 30 year mrtgage is down to just under 15 years now :D:jiggy::)

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    Guest Jim Scott

    Caution regards weekly or fortnightly payments. Whilst it is a good idea, 2 things to keep in mind.

    1. Paying weekly or fortnightly will not halve the loan term, unless you pay more than the minimum required. Will knock about 7 years off a 30 year loan though.

    2. Some lenders use the simple method to calculate weekly or fortnightly payments (monthly payment divided by 4 = weekly amount, this "simple" method assumes 48 weeks in a year, so you end up making the equivalent of 4 extra payments, which comes straight off principal.

    Other lenders use the true method, taing the monthly payment, x 12 (months), divide by 52 (weeks). This makes the minimum weekly payment less and so you will not pay off the loan so quick...

     

    Examples:

     

    Adelaide Bank

    Monthly payment divided by two or four to get fortnightly or weekly repayment

     

    ANZ

    Use true weekly or fortnightly repayments i.e. x 12 and divide by 52 or 26

    CBA

    Divide monthly payment by 2 or 4

    CITIBANK

    Divide monthly payment by 2 or 4

    FIRSTMAC

    True payments, ie. Mthly x 12 divide by 26 or 52

    HERITAGE

    Divide monthly payment by 2 or 4

    HOMELOANS LITD

    Divide monthly payment by 2 or 4

    HOMESIDE (NAB)

    Divide monthly payment by 2 or 4

    ING

    True fortnightly repayment x 12 divided by 26 . No weekly repayments.

    LIBERTY

    Divide monthly payment by 2 or 4

    PEPPER HOME LOANS

    Use true weekly or fortnightly repayments i.e. x 12 and divide by 52 or 26

    QUEENSLAND CREDIT UNION

    Use true weekly or fortnightly repayments i.e. x 12 and divide by 52 or 26

    RAMS

    Use true weekly or fortnightly repayments i.e. x 12 and divide by 52 or 26

    ST GEORGE/BANK SA

    They will divide payment by 4 to obtain weekly payment

    SUNCORP

    Divide monthly payment by 2 or 4

    WESTPAC

    Use true weekly or fortnightly repayments i.e. x 12 and divide by 52 or 26

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    Guest tooeasy

    we just divided our monthly payments by 4 then rounded it up to the nearest hundred :)

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    Guest PEZ
    Caution regards weekly or fortnightly payments. Whilst it is a good idea, 2 things to keep in mind.

    1. Paying weekly or fortnightly will not halve the loan term, unless you pay more than the minimum required. Will knock about 7 years off a 30 year loan though.

    2. Some lenders use the simple method to calculate weekly or fortnightly payments (monthly payment divided by 4 = weekly amount, this "simple" method assumes 48 weeks in a year, so you end up making the equivalent of 4 extra payments, which comes straight off principal.

    Other lenders use the true method, taing the monthly payment, x 12 (months), divide by 52 (weeks). This makes the minimum weekly payment less and so you will not pay off the loan so quick...

     

    Examples:

     

    Adelaide Bank

    Monthly payment divided by two or four to get fortnightly or weekly repayment

     

    ANZ

    Use true weekly or fortnightly repayments i.e. x 12 and divide by 52 or 26

    CBA

    Divide monthly payment by 2 or 4

    CITIBANK

    Divide monthly payment by 2 or 4

    FIRSTMAC

    True payments, ie. Mthly x 12 divide by 26 or 52

    HERITAGE

    Divide monthly payment by 2 or 4

    HOMELOANS LITD

    Divide monthly payment by 2 or 4

    HOMESIDE (NAB)

    Divide monthly payment by 2 or 4

    ING

    True fortnightly repayment x 12 divided by 26 . No weekly repayments.

    LIBERTY

    Divide monthly payment by 2 or 4

    PEPPER HOME LOANS

    Use true weekly or fortnightly repayments i.e. x 12 and divide by 52 or 26

    QUEENSLAND CREDIT UNION

    Use true weekly or fortnightly repayments i.e. x 12 and divide by 52 or 26

    RAMS

    Use true weekly or fortnightly repayments i.e. x 12 and divide by 52 or 26

    ST GEORGE/BANK SA

    They will divide payment by 4 to obtain weekly payment

    SUNCORP

    Divide monthly payment by 2 or 4

    WESTPAC

    Use true weekly or fortnightly repayments i.e. x 12 and divide by 52 or 26

     

     

    Just a quick one Jim. Me and wife will be looking to get a mortgage in Adelaide and was wondering if you could help us with the following. We will have about $150,000 as deposit and will need to borrow about $150,000(max) as a joint mortgage (me+wife) but i will be 43 and wife 54 so whats the longest term mortgage we could expect and what sort of repayments would we be looking at.

    Many thanks Pez+Sarn.

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    Guest Jim Scott

    Hi Pez and Sarn,

    standard loan term in Oz is 30 years. Lenders restricting the loan term is not usually applicable unless the youngest applicant is aged over 55. So, looks ok for you there. If both applicants aged over 55 then they may require evidence of post retirement income or superannuation/pension payout to enable the debt to be paid out on retirement.

     

    Note: as an aside, I would generally discourage anyone from structuring a loan over a term less than the maximum the lender will give you. If you want to pay off the debt quicker, say 15 years, then just make extra payments rather than commit yourself to a shorter repayment term. This give you the ability to reduce your repayments if you need to (if your income drops dramatically for example), and the extra payments can often be "withdrawn" (called redraw) in case you need the money too.

     

    Loan of $150,000 x 4.99% = $804 per month, $402, per f/n or $201 per week currently. Allow for rates going back up to say 6.99% and repayments = $996 per month, $498 p/f, $249 per week.

     

    Currently, the Government gives first home buyers $18,000 to help them buy an established home ($25,000 if newly constructed). However, they take back around $13,000 in government fees and charges! So you would have about $5,000 of this left over. Allow about another $1,500 say for lender fees, legal (conveyancing) expenses and adjusted council rates etc, and you have $3,500 net towards the purchase.

     

    So, with cash of $150,000 and a loan of $150,000 you could buy a property around $300,000.

     

    Hope this helps. Feel welcome to PM me anytime if you want more detail concerning your specific circumstances.

    Kind regards

     

    Jim

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