Table loan

A table loan is a mortgage where the regular repayment amount stays the same for the term, with the split between interest and principal shifting over time.

Why it is the default

Predictability. The payment is known and consistent, which suits budgeting and is what most lenders offer as standard.

The alternatives

• Reducing (straight line) — a fixed principal amount each payment plus interest on the balance, so payments start higher and decrease. Less common; costs less interest overall.
• Interest-only — no principal repayment for a period
• Revolving credit — flexible drawdown, no set repayment schedule

Common misunderstanding

A table loan's payment staying the same does not mean the rate is fixed. The two are unrelated. A table loan on a floating rate has a payment that changes when the rate changes.

Related terms

Last reviewed: 1 August 2026 · General information only, not financial advice.

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