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Budget for a home loan with a repayment calculator

Budget for a home loan with a repayment calculator

Most Australian’s dream of owning a home. The reality of such a dream can be out of reach for most but that doesn’t mean you shouldn’t start saving and researching what you could be doing to work towards your home owner goal.

There are many tools available online to help you plan and realise your home loan dreams. One online tool is a home loan repayment calculator.

Home loan calculators

If you’re in the market for a home loan, then you’ve come to the right place because at RateCity you can search, compare and even apply for some of the best available mortgages all through the one site. We have loads of great tools and information about applying for the best home loan for you, including news, articles and even a simple to use home loan calculator.

Our home loan calculator lets you work out how much you can comfortably afford to borrow. All you have to do is enter the amount you wish to borrow and the interest rate into the home loan calculator. You’ll then be quoted a monthly repayment figure as well as the total financial cost of the home loan.

Using the home loan calculator you’ll also be able to see the impact of making additional repayments on your home loan. For example, if you were using the home loan calculator to price up a $300,000 home loan at a rate of 6.5 percent you’d be able to determine that repayments might be around $2000 per month. By adding an extra $100 per month, however, you could potentially save more than $38,000 over the life of the loan and be mortgage free almost 3 years sooner! It’s a great motivator to help you get on top of your finances!

For your convenience we’ve also added home loan calculators to every individual home loan page – so if you’ve found a great loan that suits your needs you can work out repayments and all the really important information without having to navigate away from the page

This can be a great way to find out exactly what type of monthly expenses you will be up for, depending on the size of the loan you want to borrow. Once you have established the financial requirements you can sit down and work out how much of a deposit you need to save and if your current income will cover your desired loan amount.

Jump onto the home loan comparison page to view a huge range of Australian home loans and once you have some base rates to go by, you can jump into the home loan repayment calculator and work out your repayments.

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Learn more about home loans

How do I apply for a home improvement loan?

When you want to renovate your home, you may need to take out a loan to cover the costs. You could apply for a home improvement loan, which is a personal loan that you use to cover the costs of your home renovations. There is no difference between applying for this type of home improvement loan and applying for a standard personal loan. It would be best to check and compare the features, fees and details of the loan before applying. 

Besides taking out a home improvement loan, you could also:

  1. Use the equity in your house: Equity is the difference between your property’s value and the amount you still owe on your home loan. You may be able to access this equity by refinancing your home loan and then using it to finance your home improvement.  Speak with your lender or a mortgage broker about accessing your equity.
  2. Utilise the redraw facility of your home loan: Check whether the existing home loan has a redraw facility. A redraw facility allows you to access additional funds you’ve repaid into your home loan. Some lenders offer this on variable rate home loans but not on fixed. If this option is available to you, contact your lender to discuss how to access it.
  3. Apply for a construction loan: A construction loan is typically used when constructing a new property but can also be used as a home renovation loan. You may find that a construction loan is a suitable option as it enables you to draw funds as your renovation project progresses. You can compare construction home loans online or speak to a mortgage broker about taking out such a loan.
  4. Look into government grants: Check whether there are any government grants offered when you need the funds and whether you qualify. Initiatives like the HomeBuilder Grant were offered by the Federal Government for a limited period until April 2021. They could help fund your renovations either in full or just partially.  

Can I take a personal loan after a home loan?

Are you struggling to pay the deposit for your dream home? A personal loan can help you pay the deposit. The question that may arise in your mind is can I take a home loan after a personal loan, or can you take a personal loan at the same time as a home loan, as it is. The answer is that, yes, provided you can meet the general eligibility criteria for both a personal loan and a home loan, your application should be approved. Those eligibility criteria may include:

  • Higher-income to show repayment capability for both the loans
  • Clear credit history with no delays in bill payments or defaults on debts
  • Zero or minimal current outstanding debt
  • Some amount of savings
  • Proven rent history will be positively perceived by the lenders

A personal loan after or during a home loan may impact serviceability, however, as the numbers can seriously add up. Every loan you avail of increases your monthly installments and the amount you use to repay the personal loan will be considered to lower the money available for the repayment of your home loan.

As to whether you can get a personal loan after your home loan, the answer is a very likely "yes", though it does come with a caveat: as long as you can show sufficient income to repay both the loans on time, you should be able to get that personal loan approved. A personal loan can also help to improve your credit score showing financial discipline and responsibility, which may benefit you with more favorable terms for your home loan.

Can first home buyers apply for an ING home loan?

First home buyers can apply for an ING home loan, but first, they need to select the most suitable home loan product and calculate the initial deposit on their home loan. 

First-time buyers can also use ING’s online tool to estimate the amount they can borrow. ING offers home loan applicants a free property report to look up property value estimates. 

First home loan applicants struggling to understand the terms used may consider looking up ING’s first home buyer guide. Once the home buyer is ready to apply for the loan, they can complete an online application or call ING at 1800 100 258 during regular business hours.

How do I apply for Westpac’s first home buyer loan?

If you’re a first home buyer looking to apply for a home loan with Westpac, they offer an online home loan application. They suggest the application can be completed in about 20 minutes. Based on the information you provide, Westpac will advise you the amount you can borrow and the costs associated with any possible home loan. 

You can use Westpac’s online mortgage calculators to estimate your borrowing power. You can also work out the time it might take to save up for the deposit, and the size of your home loan repayments

When applying for a home loan with Westpac, you’re assigned a home finance manager who can address your concerns and provide information. The manager will also offer guidance on any government grants you may be eligible for.