How to calculate home loan minimum repayments (before taking out the loan).
For example, with a credit card, they clearly state, that you need to make X amount as minimum repayment (maybe 10%) with Y% interest rate applied on balances after the interest free period.
However with home loans they don't mention a minimum repayment threshold for loans before they consider you a risk to defaulting or repossessing your home. When I'm looking around for loans, they mention the loan period (usually 30 years) the variable interest rate (3-5%) and the LVR% ratio (usually 80%) needed to start the loan, but why don't they mention the minimum repayments as with credit cards do?
Would the minimum repayment be the amount required to pay it off in 30 years? and what happens if I'm just below that limit? Do they send me a warning for repossession?
What if I make a lot of additional repayments but made zero repayments the next month, are the additional repayments of previous months taken into consideration as a safely net into future months?
Now obviously I would never pay the minimum amount as I would want to pay it off as fast as possible and I have always paid the amount due on my credit card. I have a 800+ credit score on my credit card and looking to get my first home loan, but I need to understand how home loans work and plan for when disaster strikes, then how would I know what the minimum amount I own before getting into trouble is.