Home loan calculations



Mar 12, 2012( 2 min read )

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When selecting the best home loan for your circumstances, taking some smart steps early could potentially save you thousands of dollars over the life of the home loan.

To determine what you can comfortably afford to borrow, begin your search with RateCity’s home loan calculator and other budget planners. The government’s Money Smart website offers a great budgeting tool that covers every aspect of life’s expenses – even entertainment costs!

Home loan calculator

RateCity’s best home loan calculator makes it easy to compare home loans, just enter the amount that you wish to borrow and the calculator will provide a monthly repayment figure from a number of different home loan lenders.

In addition to entering a dollar amount into the home loan calculator, you can also experiment with making ‘extra’ and ‘lump sum’ repayments.  By calculating the potential interest you might save by making additional payments, you’ll  not only shave years off the home loan’s lifespan, but also potentially save plenty of coin that would otherwise find its way into your lender’s pockets.

Accelerate your repayments

One way to save on interest is by making extra repayments. By using RateCity’s best home loan calculator, you can calculate the difference that small payments can make over the term of a home loan. To experience the maximum financial impact on the interest, ideally start by making early payments from day one.

Lump sum payments

Paying a lump sum such as your annual tax refund or salary bonus, can also help reduce the extra interest you might pay over the life of the home loan. However, ensure that your lender offers a ‘redraw facility’ or ‘mortgage offset account’, so you can access this money in an emergency.

Shorten your loan

The standard home loan term in Australia is usually 25 or 30 years. However by taking out a loan for a shorter term, say for 20 years, it’s possible to shave the overall interest you’ll pay. Be aware that the shorter the home loan is, the higher the regular repayments will be – and this is where a budget comes in.

Begin down the path of home ownership by working out your home loan budget with the home loan calculator and compare some great Australian home loans in one place.


^Words such as "top", "best", "cheapest" or "lowest" are not a recommendation or rating of products. This page compares a range of products from selected providers and not all products or providers are included in the comparison. There is no such thing as a 'one- size-fits-all' financial product. The best loan, credit card, superannuation account or bank account for you might not be the best choice for someone else. Before selecting any financial product you should read the fine print carefully, including the product disclosure statement, fact sheet or terms and conditions document and obtain professional financial advice on whether a product is right for you and your finances.

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