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Picture Book · Debt and cash flow

Why early extra repayments count

Story pages

A young man in his late twenties carrying a box into a small apartment with a balcony and a pot plant
Meet Arjun. He's just bought his first unit.
A large wheelbarrow of sand being tipped into a hole
In the early years of a home loan, most of each repayment goes towards interest.
A man shovelling extra sand into the hole
Extra repayments in those years go straight to the amount owed, so less interest is charged from then on.
A man placing an envelope into a letterbox shaped like a little house
A tax refund, a bonus or a gift can go onto the loan as a lump sum.
A man reading a folder of papers at his kitchen bench with a pen and a cup of tea
Check with the lender that extra repayments are allowed, any fees, and how redraw works if you need the money back.
An older version of the same man relaxing on a balcony with friends at sunset
Years later, the loan is gone sooner than planned.

The end

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General advice warning. This picture book is general information only. It does not take into account your objectives, financial situation or needs, and it is not personal advice. Rules and thresholds change. Before acting, consider whether it is right for you, read any relevant Product Disclosure Statement and our Financial Services Guide, and seek personal advice. Past performance is not a reliable indicator of future performance.

Information as at 27 October 2026. Sources:

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