Home loans · Basics · 1 of 6 · About 4 minutes

How home loan repayments work

What each monthly repayment pays for, why it’s mostly interest at first, and what the loan’s length does.

1. 1Each repayment pays the month’s interest, and the rest comes off the loan.
2. 2At first, most of each repayment is interest.
3. 3A longer loan means smaller repayments and far more interest.
4. One question