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How to understand your home loan statement

Read time 1 min
Home loan statements tell you a lot of information in a small space, so we’ve put together a guide on how to read them.
Graphic showing an example of a home loan statement. A. Figure in debit column is your monthly interest charged. B. Figure in credit column is your repayment amount. C. Figure underneath the opening balance in the balance column- your balance decreases when you make a repayment. D. Figure above closing balance in balance column – when your interest is charged, it’s added onto your balance.
Graphic showing an example of a home loan statement, continued. A. Term limit on left hand side – if you have more than one limit, this may indicate you’ve made changes to your loan – like increasing your loan amount for home improvements. B. Offset to loan account refers to the offset account that’s linked to your home loan. C. Dollar amounts – if you’re making principal and interest repayments, this figure (loan limit) will reduce. D. Percent figure – if there’s been an interest rate change within your statement period, you’ll see the interest rate on your statement change, too.

Understanding your home loan statement

Key information

Your home loan limit

Your home loan limit is the total loan amount you’ve borrowed, and it will reduce over the remaining contract period. Your limit doesn’t reflect any extra repayments you may have made.

Your home loan balance

The balance is what you’re currently being charged interest on, and the amount will fluctuate based on the following:

  • Your repayments
  • The interest charged
  • How much you have in your offset account.

If you make extra repayments, it will be reflected on your balance, so your balance will be lower than your limit. The difference is known as your available surplus, which you can see by checking your account balance in the app or online banking.

Common questions

If you have a principal and interest home loan, you’ll be given a minimum monthly repayment amount (MMR) which is made up of two parts - principal (the loan amount) and interest.

Each month on the due date, you’ll see a transaction called ‘Debit Interest’ appear on your loan account, which is the first part of your MMR.

The reason that the principal amount doesn’t show as a transaction is because it’s not a charge to your loan. While the interest amount is being deducted from the repayment amount, the principal portion is being reduced from the remaining limit on your loan.

You’ll notice your loan limit decrease the business day following your due date.

Interest is calculated on the daily balance of the account, and therefore the amount will vary slightly month to month. The interest charged is different due to the interest rate, the balance of the account (including any offsets), as well as the number of days in the month. As some months have more days than others, interest will either be higher or lower.