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!
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:
Loan amount
Loan term
Loan type
Repayment frequency
Current interest rate
Rate hike size
It then compares the numbers and finds the difference. All you need to do is put in the numbers.
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.
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.
Owner Occupier, LVR <80%
Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply online in minutes.
Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply online in minutes.
Read our Mozo Review to learn more about the Unloan Variable
Owner Occupier, Principal & Interest, LVR <90%
Get fast online approval from the award-winning Bendigo Bank Express Home Loan. Multiple offset accounts and redraw available. 100% offset on variable rate loans and partial offset on fixed rate. Flexible repayment options. New home loans only.
Get fast online approval from the award-winning Bendigo Bank Express Home Loan. Multiple offset accounts and redraw available. 100% offset on variable rate loans and partial offset on fixed rate. Flexible repayment options. New home loans only.
Read our Mozo Review to learn more about the Express Home Loan
Fixed, Owner Occupier, Principal & Interest, LVR <60%
Competitive Fixed rate. Multiple offset accounts available. Borrowers can also make extra repayments. Redraw facility available. Simple online application process. 40% deposit required.
Competitive Fixed rate. Multiple offset accounts available. Borrowers can also make extra repayments. Redraw facility available. Simple online application process. 40% deposit required.
Read our Mozo Review to learn more about the Flex Home Loan
Owner Occupier, Principal & Interest, LVR 70-80%
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).
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).
Read our Mozo Review to learn more about the Discounted Home Value Loan
Owner Occupier, Principal & Interest, LVR <60%
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.
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.
Read our Mozo Review to learn more about the Neat Home Loan
Investment, LVR <80%
Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for investors. No application or banking fees. No monthly account keeping or early exit fees. Apply online in minutes.
Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for investors. No application or banking fees. No monthly account keeping or early exit fees. Apply online in minutes.
Read our Mozo Review to learn more about the Unloan Variable
Owner Occupier, Principal & Interest, <80% LVR
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.
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.
Read our Mozo Review to learn more about the Fixed Rate
Owner Occupier, Principal & Interest, LVR 70-80%
Competitive variable rate. Multiple offset accounts available. Borrowers can also make extra repayments. Redraw facility available. Simple online application process.
Competitive variable rate. Multiple offset accounts available. Borrowers can also make extra repayments. Redraw facility available. Simple online application process.
Read our Mozo Review to learn more about the Flex Home Loan
^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.
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.
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.
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.
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.
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.