Australia · AUD · Mortgage and repayment
Interest-Only Transition
Compare an interest-only period, remaining principal and the later repayment payment.
Reference scope documented 2026-10-25. Use actual lender/insurer quotes and confirmed scheme/tax status. APRA buffers and DTI flow limits do not establish personal approval. Published general-duty budgets exclude unconfirmed concessions and surcharges.
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Your estimate
Press Calculate estimate after entering your figures.
Educational estimate, not financial advice. Disclaimer · Methodology · Corrections.
How this estimate works
Interest-only payment = principal × annual rate / 12. After that period the same principal must amortize over the shorter remaining repayment years at the same assumed rate.
Assumptions and limits
- Amounts are AUD. Enter actual quotes, current balances and costs. No current bank offer or insurer price is invented.
- Constant-rate nominal monthly model. Daily accrual, actual payment dates, rate resets, offsets, fees and lender rounding can change results. A repayment period is different from a fixed-rate product term.
- Educational scenarios only; no serviceability, scheme/insurer eligibility, tax assessment or loan approval is established.
- No later interest rate, refinance approval or capital repayment strategy is guaranteed.
References and further reading
Worked Australia example: Interest-Only Transition
This is a hypothetical arithmetic example in AUD, not a current lender quote, market observation or borrower record. The same calculator model produces the figures below. Its input assumptions are shown so that you can reproduce or change the scenario.
| Assumed input | Illustration value |
|---|---|
| Current principal including financed charges (AUD) | 520,000 |
| Actual / scenario annual nominal rate (%) | 6.19 |
| Remaining repayment years | 25 |
| Interest-only years before P&I | 5 |
| Calculated measure | Result |
|---|---|
| Interest-only monthly payment | A$2,682.33 |
| Repayment payment from outset | A$3,411.02 |
| Interest-only principal after entered period | A$520,000.00 |
| Repayment-model balance at same point | A$468,910.46 |
| P&I after interest-only period, at unchanged rate | A$3,782.66 |
Amounts use unrounded intermediate arithmetic and are rounded only for display. Selecting different costs, rates, payment dates or terms changes the result; no illustration value is prefilled into your personal financial fields.