Based on a $500,000 home loan over 30 years. Assumes constant interest rate of 6%. Monthly repayment figures determined using the MoneySmart mortgage calculator. Interest is calculated by compounding on the same day as the monthly repayment.
| Product type | Principal repaid | Interest paid over full term of loan | Extra interest paid over full term of loan | P&I payments over remaining term of loan following IO expiry |
| P&I loan | $500,000 | $579,191 | – | $2,998 |
| 5 year IO | $500,000 | $616,452 | $37,261 | $3,222 |
| 10 year IO | $500,000 | $659,717 | $80,526 | $3,582 |
| 15 year IO | $500,000 | $709,471 | $130,280 | $4,219 |
