Home Loans with unlimited additional repayments

Rates and Fees verified correct on April 24th, 2017

Pay off as much as you want extra towards your loan and save in interest with this home loan


Unlimited additional repayments are a great feature to have with a home loan. Making extra payments towards your home loan gives you the chance to invest your extra money into your own home and save yourself money in interest in the process.

Home loans with unlimited additional repayments can save you a great deal of money over the long run, even if you are only making an additional repayment of $100 per month. By cutting down on your principal balance, you are reducing the loan amount and therefore the interest payment sooner than your terms intended you to.

It’s important to note that this feature is usually available with variable rate home loans. In some cases, you may be able to make additional repayments on a fixed rate loan, but these are generally limited to a certain amount over the fixed term or each year.

Comparison of home loans with unrestricted extra repayments

Rates last updated April 24th, 2017
Loan purpose
Offset account
Loan type
Your filter criteria do not match any product
Interest Rate (p.a.) Comp Rate^ (p.a.) Application Fee Ongoing Fees Max LVR Monthly Payment
IMB Essential Home Loan - LVR <=90% (Owner Occupier)
Take advantage of a home loan with no restrictions on additional repayments.
4.19% 4.19% $0 $0 p.a. 90% Go to site More info
NAB Choice Package Variable Rate - $250k to $749,999 P&I (Owner Occupier)
Enjoy a discounted rate with this variable rate package home loan.
4.47% 4.86% $0 $395 p.a. 95% Go to site More info
IMB Introductory Variable Rate Home Loan
Enjoy a discounted rate for the first year and the ability to make additional repayments.
4.19% 4.93% $445 $10 monthly ($120 p.a.) 95% Go to site More info
Newcastle Permanent Building Society Premium Plus Package Home Loan - Tier 1: Up to $500,000 (Investor, P&I)
An award-winning package home loan which allows regular additional repayments and lump sum payments.
4.57% 4.94% $0 $395 p.a. 60% Go to site More info
4.19% 4.21% $0 $0 p.a. 90% Enquire now
ANZ Standard Variable Home Loan  - Variable
Make additional repayments and use your 100% offset to pay off your loan sooner.
5.25% 5.35% $600 $5 monthly ($60 p.a.) 90% Enquire now
RAMS Full Feature Home Loan - (Owner Occupier, P&I)
No ongoing fees, unlimited extra repayments and a 100% offset account all help to pay off a home loan sooner.
5.35% 5.42% $595 $0 p.a. 95% More info
CUA Fresh Start Home Loan - Owner Occupiers
A free redraw facility and the ability to make additional repayments with no penalty.
4.26% 4.27% $600 $0 p.a. 80% More info
Commonwealth Bank No Fee Variable Rate - Owner Occupier
A home loan with no establishment fees or monthly fees.
4.52% 4.52% $0 $0 p.a. 95% Enquire now
HSBC Home Equity Loan - Owner Occupier
Flexibility with no set loan term and extra repayments allowed with no ongoing fees.
5.31% $600 $0 p.a. 90% More info
ANZ Breakfree Home Loan Package - $250,000 to $499,999 (LVR <=80% Owner Occupier)
A package home loan with a discounted rate and fee waivers.
4.45% 4.84% $0 $395 p.a. 80% Enquire now
St.George Standard Variable Loan - Variable Rate (Owner Occupier, IO)
A no frills home loan with a 100% offset account and high maximum LVR.
5.42% 5.59% $600 $10 monthly ($120 p.a.) 95% Enquire now

How much do you stand to save with unlimited repayments?

Dave is trying to secure a home loan of $150,000 that allows for an unlimited amount of extra repayments, and wants to check first that he's not being charged any types of fees for this feature.

With this loan amount spread out over a thirty year term at an interest rate of 5.5% p.a. and monthly regular repayments, he could cut his terms down by six years and three months just by making an additional repayment of $100 per month after the first year. The amount Dave would save in interest over the life of the loan would be an astonishing $36,838.14.

You can use our calculator to work out how much extra repayments could save you on your home loan.

How does a home loan with unlimited additional repayments work?

When you have a home loan that offers a feature like unlimited additional repayments, you won’t be penalised if you pay over a certain amount over the expected loan repayment for the year. As mentioned above, this feature is typically only found on a variable rate home loan. Making payments towards a fixed rate when you're not meant to, or making extra repayments above the allowed limit can come with hefty break costs, which can outweigh the benefits of making extra repayments in the first place. These home loans don't have a limit and therefore don't penalise borrowers for making extra repayments.

You can choose to make additional repayments in large lump sum amounts or just by adding a small amount to your repayment each week, fortnight or month. The more extra money you put towards your loan, the faster you will be able to pay it off.

Fixed rate home loans that allow additional repayments

How to compare these types of mortgages

  • Fees and restrictions. While a lender could let you make unlimited additional repayments, they could also charge you for doing so. If this is the case, make sure that the money you’re saving from making extra repayments outweigh the fees.
  • Redraw facility. You never know what surprises lay ahead for you tomorrow. When shopping for a home loan with unlimited additional repayments look for those with a redraw facility. This feature will allow you to withdraw any additional repayment you may have made on your loan if you suddenly find yourself in need of that extra money.
  • Special terms. In some cases, you may only be allowed to take advantage of this benefit for a limited amount of time. Read the fine print carefully to make sure that you will have this feature available for the life of your loan if it's required.
  • Early exit fees. There are some lenders who will welcome additional repayments but charge you a fee if you terminate your home loan early than the terms dictated. Look for this fee when examining the fees of all of the home loans you are interested in.
  • Split loans. Some home loans offer the option of splitting your home loan into a variable and fixed rate loan. Check to make sure you are not penalised if you make too many additional repayments while the fixed rate portion of a split loan is active.

Pros and cons of home loans with unlimited additional repayments


  • Shortened terms. If you are consistent in making additional repayments, you will be able to own your home outright sooner.
  • Save on interest. By making additional repayments, you are changing the base amount of the loan, thereby decreasing the amount of money you will have paid in interest fees over the length of your loan.
  • Redraw facility normally available. If you need to use the money that was used towards additional repayments, you can use the redraw facility to take a portion of it back.


  • Fees. Some banks will charge a fee for this service, or penalise you at the end of your loan with a high exit fee.
  • Limited loan type options. Most fixed rate loans will only allow a set amount of additional repayments to be made each year. By going over this amount you would be subjecting yourself to high fees and penalties. This makes this feature more adaptable to the variable rate home loan.

How extra repayments can see you pay your loan off sooner

Things to avoid

  • Exit fees. When investigating home loans that offer this feature, try and find those that are not charging any extra fees. You don’t want to be penalised for your hard work in paying off your home loan early.
  • No redraw. You will want to also ensure that there is a redraw option with this type of feature. This can allow you to have access to your money again in the event that an unexpected emergency arises.

Frequently asked questions

In most cases you are able to make your additional repayments at will, either by combining it with your normal repayment or by making large lump sum payments monthly.

In most cases no, but if yours is a fixed rate loan you will want to check if there really is not a limit on repayment amounts. Also compare exit fees to make sure you will not be charged substantially for an early payoff.

Marc Terrano

A passionate publisher who loves to tell a story. Learning and teaching personal finance is his main lot at finder.com.au. Talk to him to find out more about home loans.

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