Calculators for Home Loans
Before the internet, comparing mortgage products for your circumstances could be a very laborious task. That's because you'd have to either visit or phone multiple branches to get mortgage rate quotes and manually compare options. But with the advent of comparison websites such as RateCity you can take some very easy steps online to find home loans that potentially, can save you thousands of dollars over the life of your mortgage.
One of the best ways to determine what you can comfortably afford to borrow is to use RateCity’s calculators for home loans.
RateCity’s calculators for home loans make it easy to compare home loans. Our loans calculator will help you find the right loan for your circumstances. All you have to do is enter how much you would like to borrow and over which period you would like to pay it back. The loans calculator then offers you a range of suitable home loans.
RateCity’s home loan calculator lets you experiment with making (regular) additional, as well as lump sum, repayments. The calculator shows that making additional payments, over and above the minimum required, can not only slice years off the home loan’s lifespan, but also potentially save you thousands of dollars in interest.
Pay more often
Making regular extra repayments is a sure way to reduce the interest you will pay over the term of a home loan, and using the home loan calculator will show you by just how much. It’s a very useful and instructive tool.
Pay in lump sums
Lump sum payments, such as your annual tax refund or a work bonus, can also assist in reducing the additional interest you might pay over the life of the mortgage. As with regular extra repayments, the more lump sum deposits you make, the more you’ll save on interest. But not all lenders will allow lump sum payments, so it's worth checking this is a feature of a home loan before you sign up.
Calculate a shorter loan
The standard mortgage term in Australia is usually 25 or 30 years. Our home loan calculator shows what you would pay in interest overall if you adjust the loan term – and you will see that by reducing the loan by 5 or 10 years, it’s possible to save thousands in interest. Be aware though that the shorter the home loan is, the higher the regular repayments will be. To determine the mortgage costs specific to your situation, why not try RateCity’s calculators for home loans.