This home loan comparison calculator compares the details of two different home loans to determine which is cheaper in terms of interest and fees. All you need to do is enter the details of both home loans, and the calculator will automatically generate an estimate of how much you'll save going with one loan over another.
The two common factors shared by each home loan are the loan amount and loan term. For each home loan, you will need to input:
Upfront Fees: Upfront fees and charges like establishment fee, appraisal fee etc.
Ongoing Monthly Fees: Fees and charges you are required to pay each month.
Intro Rate: The introductory interest rate for the home loan.
Intro Term: How long the introductory interest rate applies.
Ongoing Rate: The interest rate that is applied at the end of the introductory period and remains for the life of the loan.
An introductory rate, also commonly called a 'honeymoon rate', is a lower interest rate some loans offer for a certain period at the start of the loan term. During this introductory period, your home loan repayments will be cheaper.
Once the introductory period ends, the loan's interest rate will revert to a higher rate and remain that way until the mortgage is paid off. The introductory rate is offered for promotional reasons and may convince you that a loan is more affordable than it really is, and it may draw your attention away from high fees or other loan charges.
This home loan comparison calculator is designed to give you an estimate of how much money you'll save by switching to a different home loan. The calculator works on a series of assumptions, including:
Because there is so much variance between different home loan products and how lenders manage them, a calculator can't give you a precise answer. Therefore, you should only use the results from this comparison calculator as an indication of what you could save by switching your mortgage.
You can look at the comparison rate of two different home loans to determine which of them is more affordable relative to a standard mortgage. If you don't know the comparison rate of a loan, you can use our comparison rate calculator to quickly find out.
This home loan comparison calculator allows you to perform a more nuanced comparison between two home loans factoring in upfront and ongoing fees. When used alongside other home loan calculators, this tool gives you greater insight into which home loan is best suited to your financial situation.
If you compare two loans and discover you can save money by switching to a loan with a lower interest rate, then you should do the following: