Home Loan Comparison Calculator

Use Savvy’s home loan comparison calculator to compare the cost of home loans side-by-side and see how much you can save by switching.

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, updated on August 7th, 2023       

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Comparing home loans can be confusing with so many variables to take into consideration.  That’s why we’ve made the job of comparing home loans easy with this handy home loan comparison calculator.  Read on to find out how to use Savvy’s helpful mortgage comparison calculator so you’ll get all the information you’ll need to make an informed mortgage comparison decision.

Compare home loans with Savvy’s home loan comparison calculator

How does the home loan comparison calculator work?

Savvy makes it easy for you to compare home loan repayments.  To compare two similar loans, first enter the loan amount and loan term you’re contemplating at the top of the loan calculator page.

From there, you can enter the details of the first and second home loans you wish to compare.  If either loan has an introductory interest rate, enter that rate and its term in months.  Finally, you can input the ongoing interest rate (also called the ‘revert rate’ by some lenders) for each loan.

The results of your comparison will appear after you’ve inputted all the required information, with the graph showing you how much you will save in interest and fees by choosing the cheaper loan.

Which additional loan features should I look for during the comparison process?

Some of the additional features to look for in a loan which can save you a meaningful amount overall include:

Offset account

Having an offset account can save you money by reducing the interest you pay on the principal sum you borrowed.  Any money you place in your offset account will reduce the interest you’re charged.  For example, if you have a $400,000 loan but have $50,000 in an offset account, you will only be charged interest on $350,000, as the remaining $50,000 is offset.

Repayment flexibility

Variable rate loans offer you the flexibility to make additional repayments on your loan, reducing the overall interest you pay.  If you receive a financial windfall, consider paying this sum off your loan to reduce the interest you pay. 

In contrast, fixed rate home loans frequently have limits on how many additional repayments you’re able to make in a year or a dollar limit on them.  This limitation means you may not be able to pay your fixed loan off sooner if you do receive a cash boost.

Redraw facility

If you do make additional repayments on your home loan, having the ability to redraw them if you face a sudden emergency can be a financial lifesaver and will avoid the necessity to take out a more expensive car or personal loan if you suddenly need a lump sum. 

Split loans

Variable interest rate loans tend to be more flexible and offer you the option of making additional repayments so you can pay off your loan sooner.  Fixed rate loans offer greater security and protection from interest rate rises.

However, it’s possible to enjoy the best of both worlds by splitting your loan into two and having one portion on a fixed rate (for a fixed term) and another on a variable rate.  Ask your lender if they offer the flexibility to split your loan, as this option could save you thousands in reduced interest payments if you pay off the variable loan more quickly.

Should I enter my home loan comparison rate or base interest rate?

You should enter the loan’s base interest rate into the Savvy calculator.  A loan’s comparison rate already takes into account most of the fees associated with that loan.  However, this calculator considers upfront and ongoing monthly fees separately and compares home loan repayments for you to make life easy.  For that reason, you should enter the loan’s base interest rate plus upfront and monthly fees as separate items, rather than using the home loan comparison rate supplied by the lender.

In Australia, all lenders must display a loan’s comparison rate alongside the base interest rate.  The comparison rate is based on a $150,000 loan taken out over a 25-year term, enabling borrowers to compare the true cost of a loan when hidden fees are taken into consideration.

Top tips for comparing home loans

Assess your needs before you compare  

Before you start comparing loans, consider what sort of borrower you are.  Are you a first-time homebuyer looking for a low introductory rate or low deposit loan?  Perhaps you’re several years into your loan, and are looking to refinance to a lower interest rate?  If so, there are great low-interest deals available to refinancers.  Similarly, there are construction loans for those wanting to build, and investor loans for property investors.

Keep one eye on the future  

It may be worth looking at locking in your interest rate at the lower end of the cycle or prioritising additional payments to place yourself in a position to pay off your loan sooner.  It’s always good to keep an eye on the home loan market to understand what the latest trends are and where interest rates are heading.  You should reassess your home loan finance at least annually and compare your options with Savvy to ensure you’re getting the best deal available.

Compare loans based on the same size and term length  

When comparing home loans, make sure you keep the size and term of the loan consistent so that you’re comparing apples with apples so the differences in fees and interest rates become apparent.   Once you’ve compared loans and found the one that offers you the cheapest option, you can alter the repayment term until you find a monthly repayment amount that you can afford and fits in with your financial goals.

Finance bundles can save you fees  

Some lenders offer finance ‘bundles’ which can be a great way to save on home loan and transaction account fees.  These packages mean you pay one single administration fee per year, and in return get your home loan, credit cards, transaction accounts and possibly even home, contents or car insurance on a fee-free or reduced rate basis.  Be aware that having all your financial services tied together in one package means you can’t easily ‘shop around’ and switch products to get the best deals available.

More frequently asked questions about home loan comparisons

How do interest-only home loans compare to principal and interest loans?

Interest-only loans only require you to pay the interest due on the sum you borrowed and not the principal.  They’re most suited to people wanting to pay the minimum amount possible on their loan for the opening few years of their loan.  They’re popular with property investors wanting smaller repayments whilst they don’t have tenants or are renovating or decorating it.  First homebuyers who can’t afford large repayments are sometimes offered interest-only loans for the first year or two until they’ve paid off other moving costs.  People building their own home can also access interest-only loans with a construction loan.

Can I get a loan for less than 30 years?

Yes – in many cases you can take out a loan over the number of years which suit you.  Of course, the fewer years you have to pay off your loan, the higher your repayments will be, but the less interest you’ll pay overall.

How are fixed rate loan break fees calculated?

Break fees (or early exit fees) are calculated using a complex formula which takes into account the loss the lender will suffer as a result of you breaking the loan agreement and swapping to a lower-rate loan.  The length of time remaining on your fixed term loan is also used in the formula, so the less time you have remaining on your fixed term, the lower your break fees will be.

How does refinancing affect my credit rating?

Each time you apply for a loan it will appear on your credit report.  Refinancing will not negatively affect your credit report unless you make multiple loan applications in quick succession, which can also paint you as an undesirable borrower, particularly if you’re rejected for several of them. This is why it’s important to use our loan comparison service in advance before you make your home loan application.

Will I get a 'black mark' from my bank if I switch to another lender?

No – banks and other lenders don’t take things personally, so should you decide to switch to another lender who offers a better loan deal, that’s your choice.  If you decide to return to your former lender or bank in the future, you’ll be welcomed back as a customer.

Why do online lenders charge less in fees?

Online lenders don’t have to pay for expensive infrastructure (such as high street branches) that the big banks have to maintain.  With fewer overheads, they’re able to offer more competitive home loans with lower interest rates.  Savvy compares a range of home loans from different lenders to make sure you can find a loan that best suits your personal needs.

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