Interest-only repayments on a $400,000 loan — Singapore

At 3% over 30 years with a 5-year interest-only period:

• Interest-only repayment: $1,000 a month
• Reverts to: $1,897 a month
• Payment jump: $897 a month
• Extra interest vs P&I: $21,944

Frequently asked questions

What are interest-only repayments on a $400,000 loan?

At 3%, about $1,000 a month. Nothing comes off the balance, so you still owe $400,000 when the interest-only period ends.

How much does the repayment jump?

By about $897 a month after a 5-year interest-only period, because the full $400,000 must then be repaid over the remaining 25 years.

What does it cost overall?

About $21,944 more interest over the life of the loan than paying principal and interest from the start.

Compare with principal & interest on the same loan

Estimate only. Assumes a fixed rate and no fees; lenders often price interest-only higher. Not financial advice.