Mortgage repayments on a $400,000 to $600,000 home loan
Monthly repayments at today's rates, how the loan term changes them, and what an extra $100, $200 or $500 a month saves.
Key points
- $400,000 at 6% over 30 years: about $2,398 a month.
- $500,000 at 6% over 30 years: about $2,998 a month.
- Each 0.25% rate rise adds about $81 a month on $500,000.
- An extra $200 a month on $500,000 saves about $103,145 in interest.
- Half-monthly payments every fortnight act like one extra monthly payment a year.
If you're borrowing between $400,000 and $600,000, small differences in rate and loan term change your repayments by hundreds of dollars a month, and your total interest by tens of thousands. These tables show what you'd repay, and how much extra repayments can save.
Monthly repayments on a 30-year loan
Principal and interest repayments, with interest calculated monthly:
| Loan amount | 5.5% | 6.0% | 6.5% | 7.0% |
|---|---|---|---|---|
| $400,000 | $2,271 | $2,398 | $2,528 | $2,661 |
| $450,000 | $2,555 | $2,698 | $2,844 | $2,994 |
| $500,000 | $2,839 | $2,998 | $3,160 | $3,327 |
| $550,000 | $3,123 | $3,298 | $3,476 | $3,659 |
| $600,000 | $3,407 | $3,597 | $3,792 | $3,992 |
On a $400,000 loan at 6%, you'd repay about $2,398 a month, or $863,353 over 30 years, of which $463,353 is interest. On $500,000, each 0.25% rate change moves the repayment by roughly $81 a month.
25 years vs 30 years
A shorter term means higher repayments but much less interest. At 6%:
| Loan amount | 30 years | 25 years | Extra per month |
|---|---|---|---|
| $400,000 | $2,398 | $2,577 | $179 |
| $450,000 | $2,698 | $2,899 | $201 |
| $500,000 | $2,998 | $3,222 | $224 |
| $550,000 | $3,298 | $3,544 | $246 |
| $600,000 | $3,597 | $3,866 | $269 |
On $500,000, choosing 25 years instead of 30 costs about $224 more a month but saves around $112,739 in interest. Many people take the 30-year term for flexibility and then pay extra when they can, which gives a similar result with less commitment.
What extra repayments save
On a $500,000 loan at 6% over 30 years, the standard repayment is $2,998 a month and total interest is about $579,191. Adding a little each month makes a big difference:
| Extra repayment | New monthly payment | Paid off in | Interest saved | Time saved |
|---|---|---|---|---|
| +$100 a month | $3,098 | 27 years 6 months | $57,325 | 2 years 6 months |
| +$200 a month | $3,198 | 25 years 6 months | $103,145 | 4 years 6 months |
| +$500 a month | $3,498 | 21 years | $199,501 | 9 years |
Extra repayments work so well because every dollar you pay off early stops attracting interest for the rest of the loan. The earlier you start, the more you save.
The fortnightly trick
Paying half your monthly repayment every fortnight means 26 half-payments a year, the same as 13 monthly payments instead of 12. On the $500,000 loan, paying $1,499 a fortnight clears it in about 24 years 6 months and saves around $124,060 in interest, assuming your lender charges interest daily and accepts fortnightly payments.
If rates rise or fall
On a variable loan your repayment changes when your lender moves its rate. Here's what a change from 6% would mean on a $500,000 loan with 30 years to go:
| Rate change | New rate | Monthly repayment | Change per month |
|---|---|---|---|
| −0.50% | 5.50% | $2,839 | −$159 |
| −0.25% | 5.75% | $2,918 | −$80 |
| +0.25% | 6.25% | $3,079 | +$81 |
| +0.50% | 6.50% | $3,160 | +$163 |
| +1.00% | 7.00% | $3,327 | +$329 |
When rates fall, many lenders keep your repayment the same unless you ask them to lower it. Leaving it unchanged works like an automatic extra repayment and shortens your loan.
Principal and interest vs interest-only
All the figures above are for principal and interest loans, where each repayment covers that month's interest plus a slice of the balance. In the early years most of each repayment is interest: in the first month of a $500,000 loan at 6%, $2,500 of the $2,998 repayment is interest. Interest-only loans have lower repayments for a set period, usually up to five years, but you don't reduce the debt, and repayments jump when the interest-only period ends because the balance must be repaid over a shorter time. They're mostly used by investors.
Offset accounts and redraw
Money in an offset account reduces the balance you're charged interest on, so it has the same effect as an extra repayment but stays available to you. Redraw lets you take extra repayments back out, though some lenders limit or charge for it. If you're building savings anyway, an offset can be a flexible alternative to locking money into the loan.
Before you choose a rate
- Compare the comparison rate, which includes most fees, not just the headline rate.
- Fixed rates give certainty but often limit extra repayments and may charge break costs.
- Variable rates usually allow unlimited extra repayments and offset accounts.
- Ask your current lender for a better rate each year or two, and refinance if they won't move. Even 0.5% on $500,000 is about $159 a month.
- Stress-test your budget. Could you still pay if rates rose by 2 to 3 percentage points? That's roughly what your lender tested you at.
Try the extra repayments calculator
For more loan sizes, see our home loan repayment tables.
Frequently asked questions
What are the repayments on a $500,000 mortgage?
About $2,998 a month at 6% over 30 years, or $3,160 at 6.5%. Over 25 years at 6% it's about $3,222.
How much does an extra $200 a month save on a $500,000 loan?
At 6% over 30 years, about $103,145 in interest and 4 years 6 months off the loan.
Are fortnightly repayments better than monthly?
Paying half your monthly repayment every fortnight adds the equivalent of one extra monthly repayment a year, which cuts years and interest off the loan.
Sources
- Moneysmart: mortgage calculator
- Moneysmart: pay off your mortgage faster
- Moneysmart: fixed vs variable home loan rates
More guides
Last reviewed October 2026. This guide is general information only. It isn't financial, tax, credit or legal advice and doesn't consider your circumstances. Rules change, so check the official sources below or speak to a licensed professional before you make a decision.