Getting Started with Your Calculation
Using our Australian home loan calculator is straightforward and takes just a few minutes to get comprehensive results. Start by entering your desired loan amount in the first field—this represents the total amount you plan to borrow from your lender, not the property purchase price. Next, input the current interest rate being offered by your lender. If you are comparing multiple loan products, you can run several calculations with different rates to see how each option affects your repayments.
Understanding Your Repayment Options
The calculator offers flexibility in how you structure your repayments. Choose between Principal and Interest (P&I) repayments, where each payment reduces your loan balance while covering interest charges, or Interest Only payments, which are lower monthly amounts but do not reduce your principal debt. Select your preferred repayment frequency—weekly payments can help you pay off your loan faster due to the 52-week year versus 12 months, while fortnightly payments offer a middle ground between monthly and weekly schedules.
Maximising Your Savings with Advanced Features
Take advantage of the advanced calculation features to see how you can save thousands of dollars over the life of your loan. Enter any extra repayment amount you can afford to make regularly, and watch how even small additional payments dramatically reduce your total interest and loan term. Similarly, if your loan product includes an offset account facility, enter your expected average balance to see the interest savings this provides. Do not forget to select your state to receive accurate stamp duty calculations and check your eligibility for First Home Owner Grants.
Frequently Asked Questions
What is the difference between a fixed and variable interest rate home loan in Australia?
A fixed rate home loan locks in your interest rate for a set period (typically 1-5 years), providing payment certainty regardless of Reserve Bank of Australia (RBA) rate changes. Variable rate loans fluctuate with the market—when the RBA raises or lowers the cash rate, your interest rate typically adjusts accordingly. Many Australian borrowers choose a split loan, fixing a portion of their mortgage while keeping the remainder variable for flexibility. Use our calculator with different interest rate scenarios to understand how rate changes might affect your repayments.
How much deposit do I need to avoid paying Lenders Mortgage Insurance (LMI)?
To avoid LMI in Australia, you typically need a minimum deposit of 20% of the property's value. LMI protects the lender (not you) if you default on your loan, and the cost can range from several thousand to tens of thousands of dollars depending on your loan amount and deposit size. First home buyers may be eligible for the First Home Guarantee scheme, which allows purchases with as little as 5% deposit without paying LMI. Our calculator estimates your potential LMI costs based on your loan details.
How can I pay off my home loan faster and save on interest?
Several strategies can help you pay off your Australian home loan faster: make extra repayments whenever possible (even an extra $100 per month can save tens of thousands in interest), use an offset account to reduce the interest calculated on your loan balance, switch to fortnightly instead of monthly payments (resulting in 26 half-payments versus 12 full payments annually), and regularly review your loan to ensure you are getting a competitive rate. Our calculator's advanced features let you model these scenarios to see your potential savings before implementing them.
