Rate change calculator

A variable home loan offers freedom and flexibility, but it also leaves you open to the chance of rising interest rates. If that happens, can your budget handle a higher monthly home loan repayment? Find out with our rate change calculator!

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Frequently Asked Questions 

Why do interest rates rise?
Interest rates are set by your lender in reaction to the RBA’s official cash rate, which sets the market standard for lending and borrowing money. If the cash rate goes up, lenders will increase rates, if it goes down, they will lower them. Well… most of the time. Your lender isn’t actually obligated to pass on any rate changes. Keep an eye on our home loan interest rates page to stay up to date with changes in the market that might affect you.

What happens if I have a split rate loan?
If you’re splitting your home loan between fixed and variable rates, then the fixed portion of your loan won’t be affected by rate changes, but the variable portion will be. In that case, you can calculate changed repayments for just that part of your loan and add it to the repayments for the fixed part, which you can work out with our handy home loan repayments calculator.

What repayments can I afford?
To find that out, check out our repayments calculator. You’ll need to know your loan amount, interest rate, the term of your home loan and your repayment frequency. You’ll also have to choose between an interest only or principal and interest loan. For more information on working all these variables out and using them to determine what monthly repayments you can handle, check out our home loan repayments guide.

What other costs should I plan for?
The effect of changing rates on your repayments is not the only cost you should keep in mind when searching out a home loan. There are other fees to consider, including mortgage establishment fees, conveyancing fees, building inspection fees and sometimes ongoing home loan fees from your lender. Also keep in mind that there are various insurance covers you may want to opt for, like income protection insurance or home and contents insurance, and some you may have to take out, for example, if you’re LVR is 80% or more, you’ll need to cover the cost of lenders mortgage insurance.

Where can I find the best rate home loan?
Make your first stop our home loan comparison table. We’ll show you interest rates, fees, special offers and criteria for each loan so that you can decide which one you like the look of best. To get specialised results, take the home loan search tool for a whirl.