Calculate your mortgage payments

Calculate your mortgage payments

RateCity’s calculators for mortgages can make the process of finding a suitable home loan simpler. That’s because our calculators for home loans allow you to not only calculate the costs of interest long term and the monthly repayment you’ll be up for, but you can even determine the costs of a specific mortgage product you may be interested in.

Calculate additional repayments

Using RateCity’s calculators for mortgages, you can also easily see what effect making regular additional repayments can have on your home loan and bottom line.

For example, by using the home loan calculator to check a $500,000, 25 year, principal and interest home loan at a rate of 5 percent, you’ll see that the minimum repayments are around $2,923 per month. However, the calculator shows that by repaying, for example, an extra $150 per month, you could save more than $39,490 in interest over the life of the loan and be mortgage-free around two years and three months sooner.

P&I versus interest-only

The RateCity home loan calculator allows you to compare the different repayment levels and the long term financial implications of choosing between principal and interest (P&I) and interest-only home loans.

For example, on a $500,000, 25 year P&I loan at an interest rate of 5 percent, the monthly repayments would be around $2,923 and the overall interest you would pay over the life of the loan is around $376,000. For the same loan but with an ‘interest-only’ structure, the monthly repayments would be $804 less at $2,083, however the overall interest you would pay over 25 years would be $625,000, $248,000 more than with the 25 year P&I loan. Sound a little confusing? Why not check out our mortgage calculator and see how much you could save by adjusting repayments today.

Switching lenders

If you’re looking to change loans or lenders, another of RateCity’s calculators for mortgages, the loan calculator is a useful tool. All you have to do is enter the size of the loan you want, the term, whether it is to be fixed or variable and the calculator does the rest – making comparing home loans simpler.

You don’t have to be an accountant to calculate ways to save money on your home loan. In fact, with all the online tools available you don’t even have to be great at maths. Just understand your budget, limitations, compare home loan products and calculate your repayments to work out what is going to suit you best.

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Learn more about home loans

Remaining loan term

The length of time it will take to pay off your current home loan, based on the currently-entered mortgage balance, monthly repayment and interest rate.

Who offers 40 year mortgages?

Home loans spanning 40 years are offered by select lenders, though the loan period is much longer than a standard 30-year home loan. You're more likely to find a maximum of 35 years, such as is the case with Teacher’s Mutual Bank

Currently, 40 year home loan lenders in Australia include AlphaBeta Money, BCU, G&C Mutual Bank, Pepper, and Sydney Mutual Bank.

Even though these lengthier loans 35 to 40 year loans do exist on the market, they are not overwhelmingly popular, as the extra interest you pay compared to a 30-year loan can be over $100,000 or more.

What is a fixed home loan?

A fixed rate home loan is a loan where the interest rate is set for a certain amount of time, usually between one and 15 years. The advantage of a fixed rate is that you know exactly how much your repayments will be for the duration of the fixed term. There are some disadvantages to fixing that you need to be aware of. Some products won’t let you make extra repayments, or offer tools such as an offset account to help you reduce your interest, while others will charge a significant break fee if you decide to terminate the loan before the fixed period finishes.

Mortgage Calculator, Deposit

The proportion you have already saved to go towards your home. 

Interest Rate

Your current home loan interest rate. To accurately calculate how much you could save, an accurate interest figure is required. If you are not certain, check your bank statement or log into your mortgage account.

Mortgage Calculator, Repayment Frequency

How often you wish to pay back your lender. 

What is an ombudsman?

An complaints officer – previously referred to as an ombudsman -looks at formal complaints from customers about their credit providers, and helps to find a fair and independent solution to these problems.

These services are handled by the Australian Financial Complaints Authority, a non-profit government organisation that addresses and resolves financial disputes between customers and financial service providers.

What do mortgage brokers do?

Mortgage brokers are finance professionals who help borrowers organise home loans with lenders. As such, they act as middlemen between borrowers and lenders.

While bank staff recommend home loan products only from their own employer, brokers are independent, so they can recommend products from a range of institutions.

Brokers need to be accredited with a particular lender to be able to work with that lender. A typical broker will be accredited with anywhere from 10 to 30 lenders – the big four banks, as well as a range of smaller banks, credit unions and non-bank lenders.

As a general rule, brokers don’t charge consumers for their services; instead, they receive commissions from lenders whenever they place a borrower with that institution.

How does a redraw facility work?

A redraw facility attached to your loan allows you to borrow back any additional repayments that you have already paid on your loan. This can be a beneficial feature because, by paying down the principal with additional repayments, you will be charged less interest. However you will still be able to access the extra money when needed.

What happens to your mortgage when you die?

There is no hard and fast answer to what will happen to your mortgage when you die as it is largely dependent on what you have set out in your mortgage agreement, your will (if you have one), other assets you may have and if you have insurance. If you have co-signed the mortgage with another person that person will become responsible for the remaining debt when you die.

If the mortgage is in your name only the house will be sold by the bank to cover the remaining debt and your nominated air will receive the remaining sum if there is a difference. If there is a turn in the market and the sale of your house won’t cover the remaining debt the case may go to court and the difference may have to be covered by the sale of other assets.  

If you have a life insurance policy your family may be able to use some of the lump sum payment from this to pay down the remaining mortgage debt. Alternatively, your lender may provide some form of mortgage protection that could assist your family in making repayments following your passing.

Mortgage Calculator, Loan Term

How long you wish to take to pay off your loan. 

What is the amortisation period?

Popularly known as the loan term, the amortisation period is the time over which the borrower must pay back both the loan’s principal and interest. It is usually determined during the application approval process.

What is a specialist lender?

Specialist lenders, also known as non-conforming lenders, are lenders that offer mortgages to ‘non-vanilla’ borrowers who struggle to get finance at mainstream banks.

That includes people with bad credit, as well as borrowers who are self-employed, in casual employment or are new to Australia.

Specialist lenders take a much more flexible approach to assessing mortgage applications than mainstream banks.

Does each product always have the same rating?

No, the rating you see depends on a number of factors and can change as you tell us more about your loan profile and preferences. The reasons you may see a different rating:

  • Lenders have made changes. Our ratings show the relative competitiveness of all the products listed at a given time. As the listing change, so do the ratings.
  • You have updated you profile. If you increase your loan amount, the impact of different rates and fees will change which loans are the lowest cost for you.
  • You adjust your preferences. The more you search for flexible loan features, the more importance we assign to the Flexibility Score. You can also adjust your Flexibility Weighting yourself, which will recalculate the ratings with preference given to more flexible loans.