Home Loan Rate Change Calculator
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Home loan comparison
Lender | |||||||||||||
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| Variable | More details | ||||||||||||
| FEATURED | loans.com.au – Variable Home Loan 90 P&I
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loans.com.au – Variable Home Loan 90 P&I
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| Variable | More details | ||||||||||||
HSBC – Home Value Loan - Owner Occupied (LVR 70% to 80%)
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HSBC – Home Value Loan - Owner Occupied (LVR 70% to 80%)
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| Fixed | More details | ||||||||||||
Newcastle Permanent – Fixed Rate Home Loan (1 year)
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Newcastle Permanent – Fixed Rate Home Loan (1 year)
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| Variable | N/A | More details | |||||||||||
Beyond Bank – Purple Basic Variable Home Loan (<80% LVR)
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Beyond Bank – Purple Basic Variable Home Loan (<80% LVR)
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| Variable | More details | ||||||||||||
Athena Home Loans – Straight Up Owner Occupier (Principal & Interest) - Liberate (LVR70%-80%)
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Athena Home Loans – Straight Up Owner Occupier (Principal & Interest) - Liberate (LVR70%-80%)
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| Fixed | More details | ||||||||||||
IMB Bank – IMB Fixed Rate Home Loan (1 year)
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IMB Bank – IMB Fixed Rate Home Loan (1 year)
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| Variable | More details | ||||||||||||
Liberty Financial – Liberty Financial Flexible Home Loan LVR >95% (Owner Occupier)
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Liberty Financial – Liberty Financial Flexible Home Loan LVR >95% (Owner Occupier)
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- No monthly or ongoing fees
- Unlimited free redraw
- No application fee
Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of November 21, 2024. View disclaimer.
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Savings.com.au Pty Ltd ACN 161 358 363 | Australian Financial Services Licence and Australian Credit Licence 515843
Purchase: How will Repayments Change if Rates Move?
This calculator provides you with an estimate of how your minimum monthly repayment might change if your interest rate changes.
Assumptions:
Repayments
We assume that:
- repayments are made at the interval specified by you;
- the interest rate charge is divided equally over 12 monthly payments;
- weekly and fortnightly loan repayment amounts are assumed to be a quarter and a half of the monthly repayment amount respectively; and
- interest is charged to the loan account at the same frequency and on the same day as the repayments are made.
Only the initial repayment amount is calculated and we assume this repayment stays the same for the loan term. In reality, repayment amounts can change for a variety of reasons.
We assume that the loan amount, loan term and repayment frequency remains the same as the interest rate changes.
Fees
We do not take into account any fees or charges.
How to use the Home Loan Rate Change Calculator
Our home loan rate change calculator can be useful in for a number of different scenarios such as:
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If you’re on a variable interest rate and your current rate has an increase or a decrease
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If you're trying to decide if it’s worth switching your home loan from a variable rate to a fixed rate or vice versa
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If you’re changing from an investment loan to an owner occupied loan or vice versa
This calculator can help you understand what your minimum repayments could look like when you make the change. To use this calculator, you simply enter your current loan amount, loan term, interest rate, type of loan, and whether it is on principal and interest or interest-only repayments.
You can enter multiple different scenarios, which means you can clearly compare the difference in your monthly repayments based on different interest rates. This is useful information to know how much you can save or even how much of an increase in repayments you get when there’s a rate change in your home loan.
Should I Switch to Another Home Loan Lender?
There are several reasons why borrowers might choose to switch to another lender. Here are the things to consider before making the switch:
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Are you are getting a better interest rate? A better rate will mean your minimum loan repayments will be lower and as a result the overall amount of your loan will be lower as well, giving you the opportunity to save money. Plus, you’ll be able to pay off your home loan faster.
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Take into account the amount you will spend on upfront and ongoing fees when switching home loans, as this can potentially offset the benefits of a lower rate.
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Get to know the features of the new loan and if they will be useful to you. A new loan may have features such as an offset account, or a redraw facility. Such features can help you save money on your loan or even pay it off quicker.
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Also consider what you value in terms of customer service. Are you ok with an online lender, or do you prefer in-store branch access?
Switching to another home loan lender may involve fees such as early exit fees or break costs. If you are locked-in at a fixed interest rate and you want to change home loan to take advantage of a lower rate you will be charged for break costs.
It’s important that you know how the cost of exit fees, since you want to take advantage of lower interest rate to save money in the first place.
You can use our home loan rate change calculator to work out how much you'll be saving when you decide to change home loan or when you switch to another lender.
Home Loan Rate Change Calculator FAQs
A change in interest rate, even the smallest increase or decrease, will have an impact not just on your monthly mortgage repayment but also on the overall amount of interest charged on your home loan.
Refinancing to a mortgage that is more than one percent is often worth it. This is the usual rule of thumb because of the significant amount of money you'll be able to save on your home loan repayments and total amount of loan interest.
Let's say you have a $350,000 home loan with a 25 year loan term, on principal and interest repayments. On a rate of 2.25% your minimum monthly repayment would be $1,52646, whereas on a rate of 1.25% your minimum monthly repayment would be $1,359.04. This 1% difference would end up saving you $167 per month.
If you are on a variable interest rate, your lender can change your interest rate. This will depend of course both on your mortgage lender, the RBA cash rate, and other funding costs.
Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to made on variables as selected and input by the user. All products will list the LVR with the product and rate which are clearly published on the Product Provider’s web site. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. Rates correct as of 9 October 2024.
^The addition of offset sub-account means your comparison rate will change.
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Savings.com.au Pty Ltd ACN 161 358 363 | Australian Financial Services Licence and Australian Credit Licence 515843