How is interest calculated on my home loan?
Last updated 24 August 2017
We calculate interest on the outstanding balance of your loan in the following way:
- At the end of each day, we multiply your loan balance by your interest rate, and divide this by 365 days. This is your daily interest charge
- Then at the end of the month, we add together the daily interest charges for each day in the month. This is the monthly interest amount you see on your statements.
How do I know what my interest rate is?
You can find the interest rate on the first page of your home loan statement or in your transaction history in NetBank.
Why does my interest amount change in some months?
Apart from changes in your interest rate, your interest amount can also change depending on the number of days in the month. Because we calculate your interest every day, the more days in the month the higher the interest amount, and vice versa.
Talk to us
To find out more, contact our Home Loan Specialists on 13 2224 8am to 8pm AEST, or visit your nearest CommBank branch.