Australian Mortgage Calculator
Calculate your Australian home loan repayments with current variable and fixed rates. Free, privacy-first — inputs never leave your browser.
Loan Details
Results
Monthly Repayment
A$3,694
Principal
A$600,000
Total Interest
A$729,949
Total Paid
A$1,329,949
For estimation only. Not professional financial, tax, or legal advice. Consult a qualified advisor before making decisions. Full disclaimer.
Australian home loan types
- Variable rate: moves with the RBA cash rate. Flexible but unpredictable.
- Fixed rate: locked 1-5 years. Certainty but break fees if you exit early.
- Split loan: part fixed, part variable. Balance of certainty and flexibility.
Features worth having
Offset account, redraw facility, extra repayments allowed, no monthly fee. All are standard on quality loans — push back on any lender that charges extra for these.
Common questions about Mortgage
What is a good Australian mortgage rate in 2026?+
Variable: 5.85%-6.75%. 2-year fixed: 5.95%-6.85%. RBA cash rate movements flow through to variable rates within 1-2 months. Best rates for 80% LTV or below.
What is LMI?+
Lenders Mortgage Insurance — payable if your deposit is under 20%. Protects the lender, not you. Cost: 1-4% of loan amount. First home buyers can often avoid LMI via government schemes.
How does an offset account actually save me money?+
A 100% offset is a transaction account linked to your home loan. Its balance is deducted from your loan principal daily before interest is calculated. Example: $500k loan at 6.25% with $50k in offset — you pay interest on $450k only. Net saving: ~$3,125/year in after-tax dollars, equivalent to ~8.5% pre-tax return on that $50k for a 37% marginal-rate earner. Far better than parking cash in a 4% savings account (taxable). Keep emergency fund and salary deposits in offset.
Principal-and-interest vs interest-only loans?+
P&I: standard. Each repayment reduces principal and interest — builds equity. Interest-only (IO): typically 1-5 year period where you pay only interest, commonly used by investors claiming negative gearing. IO rates are 0.15%-0.40% higher than P&I. Owner-occupiers pay significantly more total interest with IO. APRA restricts IO new lending to <30% of bank books. Convert IO back to P&I before the IO period ends — otherwise repayments can jump 30%-50%.
Should I fix or stay variable in 2026?+
Variable rates currently 5.85%-6.75%; 2-3 year fixed 5.95%-6.85%. Fix if you need payment certainty, expect rates to rise, or are at the edge of affordability. Stay variable if you want offset account flexibility (most fixed loans restrict or ban offset), plan to sell/refinance within 2 years (break costs on fixed can be severe — $5k-$30k), or believe RBA cuts are imminent. Split loans (50/50 fix-variable) are a common compromise.
Which first-home-buyer schemes reduce upfront costs?+
First Home Guarantee: 5% deposit, no LMI (15,000 places/year). Regional First Home Buyer Guarantee: similar, regional only (10,000). Family Home Guarantee: single parents with 2% deposit, no LMI (5,000). Help to Buy (shared equity): government takes 30%-40% equity stake, reducing your loan size. Each state also has stamp duty concessions/exemptions (e.g., NSW exempts under $800k new homes) and First Home Owner Grants ($10k-$30k for new builds).