Home loan repayment types

When you take out an ANZ Fixed Rate or Floating Rate Home Loan, you can choose from three different types of repayments:

Table repayments

Table repayments are the most common option. Your repayments stay the same over the term of the loan. Here’s how they work:

  • The total amount of interest that must be paid over the term of the loan is added to the principal (the amount you borrow).
  • This amount is then divided into equal repayments over the term of the loan.
  • You pay more interest than principal at the start, so initially you’re not building up much equity (the amount you own) in your home. However the balance changes over time and later on you repay more principal than interest, and your equity builds up faster.

Here's how it works:


Straight line repayments

With straight line repayments your repayments are larger at the start, but they reduce a little each time and you pay slightly less interest over the term of the loan. Here’s how they work:

  • Your principal (the amount you borrow) is divided into equal repayments over the term of the loan.
  • Interest is then applied to each of the principal repayments.
  • As the principal is reduced over time you gradually increase the equity in your home. Your repayments also reduce a little each time.

Straight line repayments might suit you if you want to pay less interest in total, and you can afford to make the largest payments at the start.

Straight Line

Interest only repayments

Interest only repayments are exactly as the name suggests - you only pay the interest with each repayment. The principal (the amount you borrow) must be repaid at the end of the loan term (this may be up to 5 years depending on your circumstances).

interest Only

Lending criteria, terms, conditions and fees apply.

This material is for information purposes only. Its content is intended to be of a general nature, does not take into account your financial situation or goals, and is not a personalised financial adviser service under the Financial Advisers Act 2008. It is recommended you seek advice from a financial adviser which takes into account your individual circumstances before you acquire a financial product. If you would like to speak to an ANZ Authorised Financial Adviser, please call 0800 269 296.

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