Home Loan Experts

Wondering how much interest rate you’ll be paying on your home loan or what rate you can be eligible for? Use our calculator to find out.


Interest Rate Calculator

Loan type

Calculate interest rate for
Loan amount
$
Loan term
years

Loan details

Interest rate type
Loan repayment type

Upload a copy of your most recent home loan statement.
You can download this from your Internet Banking account (click here for instructions).

Supported file types are .pdf, .jpg, .jpeg, .bmp, .png, .doc, .docx, .xls and .xlsx

Most recent interest charged ? lease make sure that you enter the interest you were charged, not the amount of your repayment.
$
When was this charged? ? This is the date when the above interest was charged.
When were you charged interest before this? ? For example if you were recently charged interest on 01/07/2014 then the previous time you were charged interest was likely one month earlier on 01/06/2014, however please check your statement to be sure.
What was the loan balance at this time? ? Student: For example if you were recently charged interest on 01/07/2014 and were previously charged interest on 01/06/2014 then what was the balance on 01/6/2014?
$
I have no idea, I need an easier way.
  • Your current interest rate is
  • Do you have an offset account?
    This could be messing up our calculations.

    Enquire online and one of our mortgage brokers will check your rate.
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Disclaimer: The interest rate quoted is the best available rate for someone with your loan size. In some cases we can obtain better pricing via negotiation with our lenders however if you cannot qualify with this lender you may end up paying a higher interest rate with an alternate lender. Estimates of your current rate include some assumptions for example, you have not had the balance change during the period over which interest was calculated and that you do not have an offset account. Please speak to our mortgage brokers to confirm your current rate and which interest rates you are eligible for.

What is an Interest Rate?

An interest rate is the cost of borrowing money, expressed as a percentage of the loan amount. This is basically what the lenders charge you for using their money. For example, a 6% interest rate on a $500,000 loan means you’ll pay $30,000 annually in interest.

When it comes to home loans, the interest can be either variable, which means they change with the market or fixed, which means the rates stay the same.

Therefore, securing a low and competitive interest rate will help you save money over time as even a 0.25% change in the interest rate can add up to thousands of dollars over the your loan’s lifespan.


How does our Mortgage Interest Rate calculator work?

Unlike general interest rate calculator, our calculator is tailored for home loans:

  • Work out your current interest rate based on your loan amount, repayment, and term.
  • Calculate for both fixed rates and variable rates to see how they affect repayment.
  • Estimate how much interest you’ll pay over the life of your loan.

What Factors Affect Your Mortgage Interest?

There are 4 main factors that influence how much interest you pay:

Factors Effect
Interest Rate Higher rates = more total interest paid
Loan Size Larger loans mean more interest overall
Loan Term Longer terms mean more interest across the life of the loan
Outstanding Balance You pay less interest as you reduce the principal

How Can I Save Interest On My Home Loan?

You can save thousands of dollars on your interest just by getting the best rate. If you already have a home loan, you might even want to consider refinancing with your current lender or a new lender that can offer you a better rate. One of the most effective ways to save on home loan interest is by paying off your loan faster. Here are some tips to help you do that:

  • Consider an offset account: If you have an offset account, the loan balance you pay interest on is reduced by the amount in the offset. For example, $50,000 in an offset account for a $500,000 mortgage means that you will only pay interest on $450,000.
  • Make extra repayments: Your extra repayments will go more towards paying off the principal portion of your loan, which means the interest charged on the outstanding balance will go down. Some lenders may have restrictions on how much extra you can pay and charge a fee for making extra repayments.
  • Make lump sum payments: Your lender may accept a lump sum payment if you’ve received a tax return, inheritance, bonus or dividend payments. The payment you make will go directly towards paying off the principal portion of your loan.
  • Pay both principal and interest: You’ll end up paying less in interest over time by hitting both the principal amount and the interest on your home loan. Check out other benefits of paying both principal and interest (P&I).

Fixed or variable?

Fixing your rate is a great way for you to lock in a rate you’re comfortable with for up to the first 5 years of your loan. Despite this, some people may be better off going with a variable rate.

The reason is that fixed rate loans have high fees if you pay off your loan early or when you make large additional repayments. These fees are known as break costs.

Do not fix your rate if you are planning to:

  • Sell your property
  • Make a large lump sum repayment
  • Refinance your home loan

What loan term should I choose?

Choosing the right loan term really depends on your situation. Most mortgages in Australia are for a 30 year loan term, but you can pay your loan off earlier than that if you can afford it.

Alternatively, you can choose to pay off your loan over 40 years, the maximum loan term offered in Australia. Keep in mind though that although your repayments will be lower with a longer loan term, you will ultimately pay more in interest.

If you currently have a mortgage, our calculator can also work out the current interest rate you’re paying based on your monthly repayments.

If you are trying to minimise your loan repayments or pay off your loan as quickly as possible, our mortgage brokers can help you develop a strategy.

Please call us on 1300 889 743 or fill in our free assessment form today.

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