With homeowners spoilt for choice when it comes to selecting a home loan, choosing the right loan can seem like a complicated task. A great way to narrow down your search is to compare loans online by using repayment calculators to estimate repayment amounts, total interest payable and the total loan amount.
Using the compare home loan calculator is easy. Enter the amount that you wish to borrow and the compare home loan calculator will quote a monthly repayment figure from a number of different home loan lenders.
In addition to entering a dollar amount into the compare home loan calculator, you can also select from the different features and benefits you would like in the loan, including whether you prefer to have a ‘fixed’ or ‘variable’ interest rate.
Fixed rate loan
With a fixed rate home loan, the interest rate is set for an agreed term, usually between one and five years. While this provides homeowners with greater financial certainty, the drawback with fixed loans is if the Reserve Bank of Australia (RBA) drops official interest rates. If interest rates head south, you could be stuck paying a higher rate than if you had a variable rate loan.
Variable rate loan
With a variable rate home loan, the interest rate fluctuates up and down, usually in line with changes to interest rates set by the RBA. RateCity’s compare home loan calculator provides a comprehensive list of current variable home loan rates from most home loan lenders. One benefit of variable rate loans is they usually offer you the flexibility of making extra repayments, which is useful if you plan to pay off your mortgage faster.
Different borrowers want different features from their home loan. Some borrowers are satisfied with a simple ‘no frills’ mortgage, while others prefer a loan with a wider range of features.
- Loan amount
- Interest rate
- Loan term
- Additional repayments
- Repayment type
- Mortgage type
RateCity makes it simple for you to discover the right loan for you. Why not try it out now and compare some of the best home loans on the Australian market today?