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Weekly Repayment:
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Fortnightly Repayment:
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Monthly Repayment:
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Understanding Your Mortgage Repayments in New Zealand
Navigating the New Zealand property market often involves understanding the intricacies of home loans. A mortgage calculator is an essential tool for prospective and current homeowners to estimate their regular loan repayments. This calculator helps you understand how loan amount, interest rate, and loan term influence how much you'll pay back each week, fortnight, or month.
How the Calculation Works
The formula used by this calculator is based on the standard annuity mortgage repayment formula. It determines a fixed periodic payment that covers both principal and interest over the life of the loan. The formula calculates the payment required to amortize a loan over a set period.
The monthly payment (M) is calculated using the following formula:
M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1]
Where:
P = Principal loan amount
i = Monthly interest rate (Annual rate divided by 12)
n = Total number of payments (Loan term in years multiplied by 12)
For weekly and fortnightly repayments, the calculated monthly payment is then divided by the number of weeks or fortnights in a month, respectively. While not perfectly precise due to variations in month lengths, this provides a very close approximation for budgeting purposes.
Key Factors Influencing Your Repayments:
Loan Amount: The larger the sum you borrow, the higher your repayments will be.
Interest Rate: This is the cost of borrowing money. A higher interest rate means more money paid back in interest over the loan term. Interest rates can be fixed or floating, and choosing the right type is crucial.
Loan Term: The length of time you have to repay the loan. A longer term generally results in lower periodic payments but means you'll pay more interest overall. A shorter term means higher periodic payments but less interest paid in the long run.
Using This NZ Mortgage Calculator
To use the calculator, simply enter:
Loan Amount: The total amount you intend to borrow.
Annual Interest Rate: The interest rate offered by your lender (e.g., 6.5% for 6.5).
Loan Term: The duration of your mortgage in years, selected from the dropdown.
Click "Calculate Repayments" to see your estimated weekly, fortnightly, and monthly loan payments. Remember that this is an estimate, and actual repayments might vary slightly due to specific bank calculations, fees, and the exact payment frequency chosen.
Important Considerations for New Zealand Homebuyers:
Lender Fees: Banks and lenders may charge various fees (application fees, establishment fees, valuation fees) that are not included in this basic calculation.
Loan Types: New Zealand mortgages often have different structures (e.g., revolving credit, fixed rate splits). This calculator assumes a standard amortizing loan.
Mortgage Protection Insurance: Consider insurance to cover payments if you become unable to work due to illness, injury, or redundancy.
Prepayment: Many NZ mortgages allow you to make extra payments to reduce your loan principal faster, saving you interest.
This tool is designed to provide a clear starting point for your financial planning. It's always recommended to discuss your specific circumstances with a mortgage advisor or your bank to get a precise loan offer.
function calculateMortgage() {
var loanAmount = parseFloat(document.getElementById("loanAmount").value);
var interestRate = parseFloat(document.getElementById("interestRate").value);
var loanTermYears = parseInt(document.getElementById("loanTermYears").value);
var weeklyResultElement = document.querySelectorAll("#result .amount")[0];
var fortnightlyResultElement = document.querySelectorAll("#result .amount")[1];
var monthlyResultElement = document.querySelectorAll("#result .amount")[2];
weeklyResultElement.textContent = "N/A";
fortnightlyResultElement.textContent = "N/A";
monthlyResultElement.textContent = "N/A";
if (isNaN(loanAmount) || isNaN(interestRate) || isNaN(loanTermYears) || loanAmount <= 0 || interestRate < 0 || loanTermYears 0) {
monthlyRepayment = loanAmount * (monthlyInterestRate * Math.pow(1 + monthlyInterestRate, numberOfPayments)) / (Math.pow(1 + monthlyInterestRate, numberOfPayments) – 1);
} else {
// If interest rate is 0, repayment is simply principal divided by number of payments
monthlyRepayment = loanAmount / numberOfPayments;
}
// Approximate weekly, fortnightly, and monthly repayments
var weeklyRepayment = monthlyRepayment / 4; // Approximation: 52 weeks / 12 months
var fortnightlyRepayment = monthlyRepayment / 2; // Approximation: 26 fortnights / 12 months
// Format results
weeklyResultElement.textContent = "$" + weeklyRepayment.toFixed(2).replace(/\d(?=(\d{3})+\.)/g, '$&,');
fortnightlyResultElement.textContent = "$" + fortnightlyRepayment.toFixed(2).replace(/\d(?=(\d{3})+\.)/g, '$&,');
monthlyResultElement.textContent = "$" + monthlyRepayment.toFixed(2).replace(/\d(?=(\d{3})+\.)/g, '$&,');
}