Home Loan Comparison Calculator​

How does this home loan comparison calculator work?

This home loan comparison calculator compares the details of two different home loans to determine which is cheaper in terms of interest and fees. All you need to do is enter the details of both home loans, and the calculator will automatically generate an estimate of how much you'll save going with one loan over another.

The two common factors shared by each home loan are the loan amount and loan term. For each home loan, you will need to input:

• ‍Upfront Fees: Upfront fees and charges like establishment fee, appraisal fee etc.‍
• Ongoing Monthly Fees: Fees and charges you are required to pay each month.‍
• Intro Rate: The introductory interest rate for the home loan.‍
• Intro Term: How long the introductory interest rate applies.‍
• Ongoing Rate: The interest rate that is applied at the end of the introductory period and remains for the life of the loan.
  

How does an introductory rate work?

An introductory rate, also commonly called a 'honeymoon rate', is a lower interest rate some loans offer for a certain period at the start of the loan term. During this introductory period, your home loan repayments will be cheaper.

Once the introductory period ends, the loan's interest rate will revert to a higher rate and remain that way until the mortgage is paid off. The introductory rate is offered for promotional reasons and may convince you that a loan is more affordable than it really is, and it may draw your attention away from high fees or other loan charges.

How accurate is this calculator?

This home loan comparison calculator is designed to give you an estimate of how much money you'll save by switching to a different home loan. The calculator works on a series of assumptions, including:

• Upfront or ongoing fees and charges are not taken into account.
• Interest is calculated by compounding the same repayment frequency, which may not be true in practice.
• A year consists of 26 fortnights, 52 weeks, and is counted as 364 days.
• No rounding takes place during calculation, while repayments are rounded to the nearest cent in practice.
• This calculator does not take into account some loan features such as redraw facilities and offset accounts.

Because there is so much variance between different home loan products and how lenders manage them, a calculator can't give you a precise answer. Therefore, you should only use the results from this comparison calculator as an indication of what you could save by switching your mortgage.

How is this different from a home loan comparison rate?

You can look at the comparison rate of two different home loans to determine which of them is more affordable relative to a standard mortgage. If you don't know the comparison rate of a loan, you can use our comparison rate calculator to quickly find out.

This home loan comparison calculator allows you to perform a more nuanced comparison between two home loans factoring in upfront and ongoing fees. When used alongside other home loan calculators, this tool gives you greater insight into which home loan is best suited to your financial situation.

How do I switch to a loan with a lower interest rate?

If you compare two loans and discover you can save money by switching to a loan with a lower interest rate, then you should do the following:

1. Contact your home loan provider and ask if they can make you a better offer. The more research you have into other offers, the more bargaining power you have to negotiate.
2. If your current lender doesn't budge, consider moving to another with a more competitive interest rate. While this can seem difficult, the new lender will do most of the work for you.
3. Research the fees and charges associated with refinancing your home loan to determine your break-even point (how long until you begin to save money with a new home loan).