Understanding Your Mortgage Statement (Without the Confusion)
Your mortgage statement can look intimidating the first time you open it. Numbers, dates, balances, interest… it’s a lot — especially if this is your first home loan.
The good news? Once you know what you’re looking at, your mortgage statement is actually a really useful tool. Let’s break it down in plain English.
What Is a Mortgage Statement?
Your mortgage statement is a summary of your home loan over a specific period (usually monthly or quarterly).
It shows what you owe, what you’ve paid, how much interest you’re being charged, and where your loan currently stands.
The Loan Balance (What You Still Owe)
This is the headline number most people look at first.
Your loan balance shows how much you still owe on your mortgage at the statement date. Early on, this number doesn’t drop quickly — and that’s completely normal.
In the early years, a larger portion of your repayments goes toward interest rather than the principal.
Your Repayments
Your statement will show:
- How much you’ve paid during the period
- How often repayments are made (weekly, fortnightly, monthly)
- Any missed or extra repayments
If you’ve made extra repayments, you should see them reflected here.
Interest Charged
This section shows how much interest the lender has charged during the statement period.
It’s common for new borrowers to feel surprised by this number — especially early on. Remember, interest is calculated daily on the remaining balance, so it’s higher at the start of the loan.
Fees (If Any)
Some loans include ongoing fees, while others don’t.
Your statement will list any fees charged, such as monthly account-keeping fees. If you’re unsure why a fee appears, it’s worth asking — clarity is key.
Offset Account or Redraw (If You Have One)
If your loan has an offset account or redraw facility, your statement may show:
- Your offset balance
- How it’s reducing the interest charged
- Your available redraw amount
This part is important because it shows how your savings are helping reduce interest over time.
The Interest Rate
Your current interest rate should be clearly listed on the statement.
If rates change, your statement is one of the first places you’ll see it reflected — along with any change to your repayment amount.
Why Your Statement Is Worth Checking
Many people glance at their statement once and never look again — but it’s worth reviewing.
Your mortgage statement helps you:
- Confirm repayments are correct
- Track progress over time
- Spot unexpected fees
- Understand how interest is impacting your loan
What If Something Doesn’t Make Sense?
If a number looks odd or you’re unsure what something means, don’t ignore it.
A quick explanation can often clear things up — and sometimes even highlight opportunities to improve how your loan is set up.
Want Help Making Sense of Your Mortgage Statement?
If you’ve received your first statement (or your tenth) and want to be sure you understand what’s going on, a short conversation can help you feel confident and in control of your loan.
