Mortgage repayment calculator
Calculate your weekly, monthly or annual mortgage repayments for any New Zealand investment property on interest only or principal and interest terms.
Understanding mortgage repayments
A mortgage repayment is the regular payment made to a lender to service a property loan. For investment properties in New Zealand, repayments are typically structured on either an interest only or principal and interest basis, each with different implications for your cashflow and long-term equity position.
Interest only repayments cover the cost of borrowing without reducing the loan balance. They produce lower regular payments, making them popular with investors who want to maximise cashflow in the short term. The trade-off is that the loan balance remains unchanged over time, meaning equity is only built through capital growth rather than debt reduction.
Principal and interest repayments cover both the interest cost and a portion of the loan balance each period. Repayments are higher but the loan reduces over time, building equity through both capital growth and debt repayment. Over a 30-year term, the total interest paid on a P&I loan is significantly lower than the equivalent IO structure.
For NZ residential investment property, interest only lending is commonly used in the early years of ownership. Lenders will typically require the loan to revert to principal and interest after a fixed IO period, so understanding both repayment structures is important for long-term financial planning.