Our ‘Interest Rate Calculator’ takes into account the size of your home loan and the loan term to calculate the interest rate you may be eligible for.
It also provides an estimate of your monthly repayments depending on whether you choose to go with a fixed or variable rate.
Alternatively, you can use our calculator to work out the current rate that you are paying on your home loan.
Am I getting a good interest rate?
Banks don’t always advertise their lowest interest rates so we’ve done it for you on our interest rates page.
You’ll find that if your loan is over two years old then there is a very good chance that you are no longer on a competitive interest rate. If you went to a bank directly, you may well get a good deal at the start of your loan but you could be charged fees and a higher interest rate as the term of the home loan progresses.
We do annual reviews on our clients loans and make sure they are still getting the best deal possible from the bank.
Why not call us on 1300 889 743 or fill in our free assessment form. Our brokers may be able to negotiate special interest rate discounts depending on the size of your loan and asset position.
Calculating your rate from a statement
You can enter in your recent payment details into our calculator and it can work out what interest rate you are being charged.
It does this by dividing the interest you have been charged by the number of days since the last repayment. It’s quite accurate unless the loan balance changed during the month or you have an offset account with a significant balance.
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.