Home loan rate change calculator

A variable home loan can give you freedom and flexibility but also open you to interest rate hikes. If rates rise, can your budget handle higher mortgage repayments? Find out now with our home loan rate change calculator!

Loan details

Rate change

Repayment change if rates go up

How does a home loan rate change calculator work?

Mozo’s home loan rate change calculator tells you how much an interest rate hike could add to your monthly mortgage repayments. It does this by calculating your repayments based on your:

It then compares the numbers and finds the difference. All you need to do is put in the numbers.

How much will my mortgage increase due to interest rate changes?

How much your mortgage increases after an interest rate change depends on multiple factors, such as the size of your remaining loan amount, loan term, and current home loan interest rate.

A minor rate hike of several basis points (like 0.05%) will probably only add around $5 to $15 to your monthly repayments. However, a larger rate hike (0.25%) could add $75 or more.

Mozo’s mortgage home loan rate change calculator starts with a standard rate hike size of 0.25% so you can see how a rate rise could affect you. 

However, it also lets you look ahead with larger, more cumulative rate increases of 0.75% or more, so you can plan for future rate hikes or compare variable home loans

How do you handle a home loan interest rate increase?

If your home loan interest rate is about to increase, there are some things you can do. 

The first step is determining how much the rate change will add to your household budget. Our rate change calculator can help you with this.

The second step is to call your mortgage lender. See if you can negotiate your interest rate down to something more manageable, especially if your lender offers cheaper rates to new customers but not to you, their loyal borrower.

The final step is to look at your finances long-term. Can you handle the rate hike if you tighten your belt or take on extra work hours, or do you need a rate change? Outside of using interest saving mortgage features like an offset account, it could also be worth looking into refinancing.

Home loan comparisons on Mozo - last updated 22 February 2024

Search promoted home loans below or do a full Mozo database search. Advertiser disclosure.
  • placeholder
    Mozo Experts Choice 2024
    Home Fixed Rate

    Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    5.80% p.a.
    fixed 3 years
    6.05% p.a.

    Enjoy the security of a competitive fixed interest rate from Up. No application, monthly, annual, redraw, or discharge fees to pay. Up to 50 free offset accounts available. Up home loans are only available to owner-occupiers buying or refinancing in major Australian cities. Up is 100% owned by Bendigo Bank. New joiners get $10 by signing up to the app using code UPHOMEMOZO. (T&Cs apply). Mozo Experts Choice award winner.

    Compare
    Details
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    Mozo Experts Choice 2024
    Home Variable Rate

    Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    6.15% p.a. variable
    6.15% p.a.

    Enjoy a competitive variable interest rate from Up. No application, monthly, annual, redraw, or discharge fees to pay. Up to 50 free offset accounts available. Up home loans are only available to owner-occupiers buying or refinancing in major Australian cities. Up is 100% owned by Bendigo Bank. New joiners get $10 by signing up to the app using code UPHOMEMOZO. (T&Cs apply) Mozo Experts Choice award winner.

    Compare
    Details
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    Straight Up

    Obliterate, Owner Occupier, Principal & Interest, <50% LVR

    interest rate
    comparison rate
    Initial monthly repayment
    6.24% p.a. variable
    6.24% p.a.

    Get a low variable rate depending on your deposit with Athena’s Straight Up Variable Home Loan. AcceleRATES feature helps you to reduce your home loan even faster (T&Cs apply). Zero fees to pay. Free redraw facility. Handy mobile app to manage your home loan.

    Compare
    Details
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    Neat Home Loan

    Owner Occupier, Principal & Interest, LVR <60%

    interest rate
    comparison rate
    Initial monthly repayment
    6.09% p.a. variable
    6.11% p.a.

    Competitively-priced variable rate loan. Ideal for owner occupiers and investors. No service fees to pay. Make free extra repayments and redraws. Flexible repayment schedule available.

    Compare
    Details
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    Straight Up

    Obliterate, Investor, Principal & Interest, <50% LVR

    interest rate
    comparison rate
    Initial monthly repayment
    6.34% p.a. variable
    6.34% p.a.

    Investors get a low variable rate depending on your deposit with Athena’s Straight Up Investor Variable Home Loan. AcceleRATES feature helps you to reduce your home loan even faster (T&Cs apply). Zero fees to pay. Free redraw facility. Handy mobile app to manage your home loan.

    Compare
    Details
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    Flex Home Loan

    Fixed, Owner Occupier, Principal & Interest, LVR <60%

    interest rate
    comparison rate
    Initial monthly repayment
    6.64% p.a.
    fixed 3 years
    6.52% p.a.

    Competitive Fixed rate. Multiple offset accounts available. Borrowers can also make extra repayments. Redraw facility available. Simple online application process. 40% deposit required.

    Compare
    Details
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    Fixed Rate

    Owner Occupier, Principal & Interest, <80% LVR

    interest rate
    comparison rate
    Initial monthly repayment
    6.54% p.a.
    fixed 2 years
    7.10% p.a.

    Enjoy up to $3000 cashback for eligible first home buyers and $2000 cashback for refinancers on eligible home loans with the ANZ Fixed Rate Home Loan. Get the security of repayment certainty with a competitive locked in rate. No ongoing fees to pay. Offset account on 1-year fixed loans ($10/month fee applies). Interest-only payments allowed.

    Compare
    Details
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    Discounted Home Value Loan

    Owner Occupier, Principal & Interest, LVR 70-80%

    interest rate
    comparison rate
    Initial monthly repayment
    6.09% p.a. variable
    6.09% p.a.

    Enjoy competitive rates for owner occupiers. Enjoy unlimited free extra repayments. Flexibility to redraw additional payments for free. No ongoing monthly service fee. Settlement fee waived on new borrowings from $50,000 (T&Cs apply).

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    Details
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    Flex Home Loan

    Owner Occupier, Principal & Interest, LVR 70-80%

    interest rate
    comparison rate
    Initial monthly repayment
    6.19% p.a. variable
    6.43% p.a.

    Competitive variable rate. Multiple offset accounts available. Borrowers can also make extra repayments. Redraw facility available. Simple online application process.

    Compare
    Details
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Home loan rate change calculator quick links

^See information about the Mozo Experts Choice Home loans Awards

*WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.

Home loan interest rate change FAQs

Why do home loan interest rates change?

Depending on how the economy fares, the Reserve Bank of Australia (RBA) might decide to raise or lower official interest rates to steer things in the right direction. 

For example, if the economy is underperforming, the RBA might lower interest rates to stimulate demand. If demand is too high, the RBA might raise interest rates to keep inflation in check.

See more about how this works in our monetary policy guide.

How do home loan lenders set interest rates?

Home loans use the official cash rate as a benchmark for their variable lending rates. If the cash rate goes up or down, we can usually expect home loan interest rates to move by the same amount.

Home loan interest rates are typically much higher than the cash rate. This markup covers a lender’s business costs and gives them a profit. 

For fixed home loans, lenders typically look at the cash rate, economy, and other lenders to set their rates, since they don’t change for the fixed terms. 

What does a rate change mean for my home loan?

If your lender decides to hike your home loan interest rate, you can expect your mortgage repayments to increase. If it cuts rates, you can expect your loan repayments to decrease. 

How do rate changes affect the Australian property market?

Rising interest rates usually cause a slowdown in the Australian property market. This is because the cost of borrowing increases, so home buyers can sometimes find it harder to get a mortgage.

Lower interest rates typically cause a boom in the property market for the opposite reason: home buyers suddenly find it much easier to finance a mortgage. 

How do you change your home loan interest rate?

Your mortgage lender has the power to adjust the variable interest rate on your mortgage, but you have some power over your interest rate, too. You can change your interest rate by refinancing or negotiating a cheaper rate with your lender.