How much would repayments on a $200k mortgage cost each month?
The cost of the monthly repayments on your $200,000 home loan will vary depending on your repayment type (principal and interest or interest only), the length of your loan, and the interest charged on it. These factors should all be outlined in your home loan contract.
You can use the comparison table at the top of this page to see estimated monthly repayments based on the current interest rates for $200,000 variable rate home loans from our Online Partners. You can also change the filters to better suit your preferences.
One thing you may need to know to use our comparison table is your loan-to-value ratio (LVR), which is the amount you need to borrow compared to the value of your property, expressed as a percentage.
Can I afford the repayments on a $200k mortgage?
If you’re looking for a $200,000 mortgage, you’re probably purchasing an affordable home (comparative to national averages) or refinancing your current mortgage.
Repayments on a $200,000 mortgage are likely to be more affordable for the average person compared to repayments on a $1 million mortgage, for instance, which can often be several thousand dollars per month.
That said, lenders will still need to know your debt to income (DTI) ratio to ensure you can afford the mortgage. This is calculated using your income, regular expenses, and any outstanding debts you may already have like a credit card or personal loan balance. Your application may be declined if the debt to income ratio shows you owe more money than you can realistically afford to repay.
To help you get a better understanding of what the monthly repayments may be like for a $200,000 mortgage, we’ve generated a table below for monthly repayments over a 20, 25, and 30 year period across varying interest rates using Canstar’s mortgage calculator (This does not include any fees which may be added to the loan, like LMI.)
Interest rate (p.a.) | Loan term | ||
|---|---|---|---|
20 years | 25 years | 30 years | |
4% | $1,212 | $1,056 | $955 |
5% | $1,320 | $1,169 | $1,074 |
5.50% | $1,376 | $1,228 | $1,136 |
6% | $1,433 | $1,289 | $1,199 |
6.50% | $1,491 | $1,350 | $1,264 |
7% | $1,551 | $1,414 | $1,331 |
7.50% | $1,611 | $1,478 | $1,398 |
Source: These figures were generated using Canstar’s mortgage calculator for a $200,000 owner-occupier principal & interest home loan (excluding fees and charges).
Can I refinance my $200k mortgage?
It may be possible to refinance a $200,000 home loan, depending on your needs and if you meet the lenders’ approval criteria. If you’ve built up a substantial amount of equity in your home, then refinancing a $200,000 mortgage may be fairly straight forward.
What are the benefits of refinancing a $200k mortgage?
Refinancing could get you a better interest rate on your loan, which could lower your monthly repayments, as well as your interest costs over the long run.
You may also want to change the conditions of your loan to better suit your needs. For example, you may decide to access some of the equity you’ve built up in your home by refinancing to a larger loan, or you may want access to different loan features like an offset account, which could help you pay less interest.
What are the drawbacks of refinancing a $200k mortgage?
There are usually costs involved with refinancing. These can include discharge fees charged by your existing lender and loan establishment fees charged by your new one. If you’re wanting to refinance during a fixed rate term, you may also incur break fees.
