Explore Our Mortgage Calculators for Smarter Home Loan Decisions
We've developed a suite of powerful, easy-to-use mortgage calculators designed to give you clarity and confidence in your home loan decisions. Whether you're buying your first home, refinancing, or building an investment portfolio, our tools are here to guide you every step of the way.
Running the Numbers
Understanding your finances is a key step when buying a home or refinancing. Mortgage calculators can help make sense of the numbers, giving you a clear picture of your options. Whether you’re looking to estimate your repayments, check your borrowing capacity, or compare loan options, these tools are designed to simplify the process.
This guide explains how mortgage calculators work, the types available, and how to use them effectively in an Australian context.
The best thing you can do is have a play around and explore how it all works.
Why Use a Mortgage Calculator?
They take the complexity out of calculations, giving you the information you need to make informed decisions anytime, anywhere.
Mortgage calculators are practical tools that help you:
- Understand Borrowing Capacity: Estimate how much you may be able to borrow based on your income, expenses, and debts.
- Plan Your Budget: See what your monthly repayments might look like, including interest and principal.
- Compare Scenarios: Experiment with different loan terms, interest rates, or deposit sizes to explore your options.
Pro Tip: Always input conservative estimates for your income and expenses. This ensures you’re prepared for any unexpected costs or changes.
Types of Mortgage Calculators
There are several types of mortgage calculators that serve different purposes:
Borrowing Power Calculator
Determines how much you can afford to borrow, factoring in your income, expenses, and other financial obligations. Pro Tip: Be honest about your expenses and debt levels. Lenders will assess these when reviewing your loan application.
Refinance Calculator
Compares your current loan with new options, showing potential savings in repayments or interest. Pro Tip: Factor in refinancing costs for the new loan, to determine the true savings.
Repayment Calculator
Helps estimate your monthly repayments based on the loan amount, interest rate, and term. Pro Tip: Include property insurance, and strata fees in your calculations to get a more accurate monthly cost.
How Mortgage Calculators Work
Mortgage calculators use basic formulas to estimate repayments and costs. You’ll usually need to enter:
- Loan Amount: The total amount you plan to borrow.
- Interest Rate: The annual percentage rate for the loan.
- Loan Term: The duration of the loan, typically 30 years.
Advanced calculators may also include additional costs, such as:
- Lenders Mortgage Insurance (LMI).
- Stamp duty and other government fees.
- Ongoing expenses, like strata fees or property maintenance.
Once you’ve entered the details, the calculator provides an estimate of your repayments and, in some cases, a schedule that breaks down how much of each payment goes toward interest and principal.
Pro Tip: Use different interest rate scenarios (e.g., +0.5%) to see how potential rate increases could impact your repayments.
Factors to Consider
When using a mortgage calculator, it’s important to keep these factors in mind:
- Interest Rates: Even small changes in the rate can have a big impact on your repayments.
- Loan Terms: A shorter term reduces total interest but increases monthly repayments, while a longer term does the opposite.
- Additional Costs: Make sure to account for property taxes, insurance, and maintenance costs for a more accurate picture.
Pro Tip: MonitorReserve Bank of Australia (RBA) cash rate announcements, as they can influence interest rates and your calculations.
Practical Applications
Mortgage calculators are helpful at different stages of the home-buying process:
- Before Buying: Use a borrowing power calculator to understand your budget.
- During the Search: Use a repayment calculator to estimate your costs for specific properties.
- Considering Refinancing: Compare your current loan to available options to see if switching could save you money.
By experimenting with various scenarios, you can gain a clearer understanding of how different choices might affect your financial situation.
Pro Tip: Run multiple scenarios (e.g., larger deposit or shorter loan term) to find the most cost-effective solution for your situation.
A Tool for Clearer Decision-Making
Mortgage calculators are not a substitute for professional advice, but they are a great starting point for understanding your options. By providing a clear breakdown of the numbers, these tools can help you plan better and feel more confident in your decisions.
If you’d like to explore your options further, consider combining these tools with personalised advice to ensure your choices align with your financial goals.
Pro Tip: Keep a record of your calculations and scenarios to discuss with your broker during the loan process.
Need more info?
