Calculate And Compare Mortgages

With varying interest rates, fees and repayment options, finding the most cost-effective mortgage can be challenging.

Our Home Loan Comparison Calculator simplifies the process by comparing two different mortgage options side by side. See how different interest rates, fees and loan terms affect your repayments and long-term savings.

Home Loan Comparison Calculator

Why Compare Home Loans?

Comparing two different mortgages helps you get the true cost of a loan.

For example, if there were no upfront costs or ongoing fees to compare between two different loan options, then a borrower would save $55,800 over the life of the loan with loan 2.

However, we also need to consider the other fees and hidden costs that could be part of the loan. Comparing upfront and ongoing costs, Loan 1 saves over $130,000 over the life of the loan, even if Loan 2 had a lower interest rate.

Key Factors To Consider When Comparing Home Loans

There are five key factors to consider when comparing two home loans:

• Type of home loan: Each type of home loan has a purpose, whether it’s owner-occupier or investment, construction or refinancing. Each type will suit specific needs.
• Loan size: Most lenders view a Loan-To-Value ratio of 80% or below favourably, potentially leading to better loan terms. Higher LVRs may necessitate Lender Mortgage Insurance (LMI), increasing overall costs.
• Interest rates: Compare the interest rates of both loans, as even minor differences can affect the total amount paid over the life of the loan. Consider whether a fixed or variable rate suits your financial situation and risk tolerance. ​
• Home loan features: Assess additional features, such as offset accounts, redraw facilities, and flexible repayment options. These can offer greater flexibility and potential interest savings, depending on how you manage your finances.
• Fees and costs: Examine all associated fees, including application fees, property valuation fees, annual fees, and charges for using specific loan features. Some loans may have higher fees but offer lower interest rates, so it’s important to evaluate the overall cost-effectiveness.

You can read our page on How To Choose A Home Loan for more details.

When comparing different home loans from different lenders, it is important to compare apples and apples!

Try not to make these common mistakes:

• Forgetting to compare LMI premiums
• Comparing the professional discount instead of the final interest rate
• Not taking the offset benefit into account
• Applying with a lender that has a low rate that will not approve your loan