Home loan calculator

A home loan calculator is an online tool that will give you an overview of your mortgage. It will help you estimate your repayments and how they will change when the interest rate fluctuates. It will also show the effect of extra repayments on your home loan, and what happens when you add an offset account or lump sum to your home loan.

Taking out a home loan is an important step in the home buying process. You need to consider various factors that will affect the overall cost of your mortgage. Factors such as the interest rate, loan amount, term of the loan, repayment schedule, and the repayment type.

An online mortgage calculator can help you make an informed decision by comparing various home loan options, understand your financial capabilities and liabilities, and simplify the process of calculating your mortgage.

loans.com.au requires a minimum deposit of 10% of the purchase price of the property, or the current value of the property if you are refinancing.

To avoid paying Lenders Mortgage Insurance (LMI), borrowers need a 20% deposit in most cases.

Most home loans are 'principal and interest', which means your repayments reduce the amount of debt outstanding (the principal) as well as covering the interest charges for the period. With a principal & interest loan, you will pay off the loan over time.

With an interest-only loan, you only pay the interest on the amount you have borrowed.

These loans are for a set period (for example, five years) after which the loan changes to a principal & interest loan.

The Loan to Value ratio (LVR) is the amount of your loan compared to the value of your property. LVR is calculated by dividing the amount of the loan by the value of the property. For example, if the property is worth $500,000 and you have a deposit of $100,000, the LVR will be 80%.

It affects your loan application because lenders will not give you a home loan if your LVR is above a certain level, usually 90%.

If your LVR is between 80-90% (in other words, you have more than 10% deposit but less than 20%), you will usually have to pay Lenders Mortgage Insurance (LMI).

Yes, you can split your home loan to have both variable and fixed interest rate payments. Splitting your home loan provides the certainty of a fixed rate, but lets you enjoy the benefit of any rate cut, make additional repayments and get access to your offset redraw facility.

A comparison rate includes both the interest rate as well as any fees or charges associated with the specific home loan. The comparison rate helps borrowers understand the true cost of a loan when comparing products from different lenders.

The interest rate affects the amount you will be required to repay over the life of your home loan. If you have a variable rate home loan, when interest rates rise it will increase your mortgage repayments. In contrast, if interest rates fall your repayments will be lower. If you choose a fixed-rate loan, you do not have to worry about changes in interest rates until the fixed period is over.