Best Mortgage Calculator Repayments

Owning a home is often described as the ‘Great Australian Dream’, so don’t let the mortgage repayments become your ‘worst financial nightmare’.

Fortunately, with the best mortgage calculator, repayments set by many of Australia’s lenders can be revealed.

The calculator in question is RateCity’s home loan calculator, which also reveals how long it will take to repay a variable rate mortgage or a fixed rate mortgage, the mortgage rates and so on.

Besides with the best mortgage calculator, repayments can be altered by switching between a selection of repayment frequencies – in some cases, increasing repayments from monthly to fortnightly repayments is often the best approach for shaving interest and time from a home loan. But this will entirely depend on your lender.

More repayments

If your home loan lender allows it – and most do – choose fortnightly rather than monthly repayments. By increasing the repayment frequency, you can significantly slash the interest liability attached to a 25-year home loan, and shave years off its term.

If you’re wondering how this works – it’s pretty simple. Paying fortnightly instalments is like making 13 months worth of repayments annually.  The additional month could make a big difference over the term of the home loan, while you probably won’t find it any more financially onerous than making monthly repayments. Again, this will depend on how your lender calculates interest, so it's certainly worth asking.

Lump sum payments

Another way to make a serious dent in your home loan is to pay lump sums such as tax return payments, a small inheritance, a lottery win, or a salary bonus directly into the home loan. This works on the basis that the lump sum immediately reduces the home loan amount that the interest is calculated against.

The beauty of a lump sum payment is that you won’t miss what you never had, while this strategy will provide you with an excellent tax-free return that no other investment strategy can compete with. Not all home loans allow borrowers to make lump sum payments, so check this with your lender or compare home loan features online at RateCity.

If you’re worried a lump sum payment will tie up your money, don’t forget most home loans have redraw facilities, which provide access to your funds should the need arise.


Using RateCity’s best mortgage calculator, repayments can be tweaked until you find the best match for your circumstances – it's literally a key stroke away.