How to Use the Australian Mortgage Calculator

Step-by-step guide for best results

How to Use Our Australia Mortgage Calculator

A step-by-step guide to calculating your Australian mortgage payments with ASIC-compliant features

Disclaimer: This calculator is provided for general information only and does not take into account your personal objectives, financial situation or needs. It is not credit advice. You should obtain and consider the relevant Product Disclosure Statement (PDS) and seek independent, professional advice before making any decisions.

Our Australia mortgage calculator helps you estimate your mortgage payments and total loan costs with enhanced accuracy and regulatory compliance. Follow these steps to get comprehensive results:

Step 1: Enter Basic Loan Information

Property Price

  • Enter the total purchase price of the property
  • Include any closing costs if you want them factored into your total cost
  • Use the actual price you're paying, not the listing price
  • Range: $50,000 to $10,000,000+

Deposit

  • Enter the amount you'll pay upfront
  • Aim for 20% to avoid LMI (Lenders Mortgage Insurance)
  • Include any earnest money or deposits
  • Auto-calculation: LMI will be automatically calculated if deposit < 20%
  • Minimum: 5% for most lenders (higher LMI costs)

Interest Rate (p.a.)

  • Use the nominal interest rate from your lender
  • Compare rates from multiple lenders for the best deal
  • Consider both fixed and variable-rate options
  • Range: 1.00% to 15.00%

Comparison Rate (p.a.)

  • Enter the comparison rate including most fees and charges
  • This helps you compare loans on a level playing field
  • Note: Comparison rate based on a $150,000 loan over 25 years. WARNING: This comparison rate applies only to the example given.

Loan Term (Years)

  • Choose between 15, 20, 25, or 30 years
  • Shorter terms mean higher periodic payments but less total interest
  • Longer terms mean lower periodic payments but more total interest
  • Most common: 25-30 years for first home buyers

Repayment Frequency

  • Weekly: 52 payments per year (most frequent, lowest total interest)
  • Fortnightly: 26 payments per year (popular in Australia)
  • Monthly: 12 payments per year (traditional)
  • More frequent payments can reduce total interest paid

Loan Type

  • Principal & Interest: Standard loan where you pay both principal and interest
  • Interest Only: Pay only interest for a set period (usually 5-10 years)
  • Interest-only loans have lower initial payments but higher long-term costs

Step 2: Add Annual Costs

Annual Council Rates

  • Check your local council website for current rates
  • Council rates vary by local government area
  • Use the assessed value, not the purchase price
  • Auto-distribution: Will be divided by your chosen payment frequency
  • Typical range: $1,000 - $3,000 annually

Annual Home Insurance

  • Get quotes from multiple insurance companies
  • Include both building and contents insurance if needed
  • Consider the replacement cost, not the market value
  • Auto-distribution: Will be divided by your chosen payment frequency
  • Typical range: $800 - $2,500 annually

Step 3: Include Australia-Specific Fees

LMI Premium (Lenders Mortgage Insurance)

  • Check the box if you want to include LMI
  • Required if deposit is less than 20%
  • Premium varies by deposit percentage and loan amount
  • Auto-calculation: Based on loan-to-value ratio (LVR)
  • Note: Actual LMI premiums depend on lender, LVR and loan size—contact your lender for a quote.

State Selection

  • Select your state for accurate stamp duty calculation
  • Each state has different rates and concessions
  • First home buyer concessions available in most states
  • States: NSW, VIC, QLD, WA, SA, TAS, NT, ACT

Application Fee

  • One-time fee charged by the lender for processing your loan
  • Varies between lenders
  • Can range from $0 to $600+
  • Typical: $200 - $500

Step 4: Optional Extra Payments

Extra Periodic Payment

  • Additional amount you plan to pay each period
  • Can significantly reduce your loan term and total interest
  • Even small amounts can make a big difference over time
  • Example: $200 extra fortnightly can save $100,000+ in interest

One-time Extra Payment

  • Lump sum payment you plan to make in the first period
  • Could be from savings, bonus, or other windfall
  • Immediately reduces your principal balance
  • Impact: Reduces total interest and loan term

Step 5: Calculate and Review Results

Click the "Calculate Mortgage" button to see your comprehensive results:

Key Facts Panel (Indicative Only)

  • Amount Borrowed: Your loan principal
  • Interest Rate: Your nominal interest rate
  • Comparison Rate: Rate including most fees
  • Repayment: Your periodic payment amount
  • Total Amount Payable: Total cost over the loan term
  • Loan Term: Duration of your loan

Payment Breakdown

  • Principal & Interest: The core loan payment
  • Council Rates: Periodic rates payment
  • Home Insurance: Periodic insurance premium
  • Total Monthly Payment: Sum of all periodic costs

Total Costs

  • Total Interest: Total interest paid over the loan term
  • Total Cost: Property price plus all interest and fees
  • Loan Amount: Amount you're borrowing
  • LMI Payment: One-time insurance cost (if applicable)
  • Stamp Duty: State transfer duty
  • Application Fee: Lender processing fee

Extra Payment Savings

  • Interest Saved: Total interest reduction from extra payments
  • Term Reduced: Years saved from extra payments
  • New Loan Term: Actual loan duration with extra payments

Step 6: Explore Additional Features

Amortization Schedule

  • Click "View Amortization Schedule" to see payment-by-payment breakdown
  • Shows principal, interest, and balance for each period
  • Uses row-by-row rounding for maximum accuracy
  • Includes extra payments in the calculation

Export Results

  • Click "Export to Excel" to download your results as CSV
  • Includes complete loan summary and amortization schedule
  • Perfect for record-keeping and comparison
  • ASIC-compliant format with proper disclaimers

Step 7: Export Your Results

Click "Export to Excel" to download a comprehensive CSV file containing:

  • Summary Information: Property details, loan amounts, rates
  • Loan Terms: Interest rates, comparison rates
  • Periodic Costs: Breakdown of all payment components
  • Total Costs: Complete cost analysis over loan term
  • Extra Payment Analysis: Savings and term reduction
  • Amortization Schedule: Full payment-by-payment breakdown
  • Regulatory Notes: ASIC compliance and disclaimer information

Export Features

  • Professional CSV format compatible with Excel
  • Includes ASIC-compliant calculations
  • Perfect for sharing with lenders or accountants
  • Contains complete amortization schedule
  • Includes legal disclaimers and compliance notes
  • Extra payment impact analysis

Tips for Best Results

  • Compare multiple scenarios: Try different loan terms, rates, and payment frequencies
  • Consider extra payments: Even small additional amounts can save thousands in interest
  • Factor in all costs: Don't forget council rates, insurance, and other ongoing expenses
  • Check first home buyer benefits: You may be eligible for stamp duty concessions
  • Use realistic rates: Research current market rates from multiple lenders
  • Consult professionals: Always seek independent financial advice before making decisions

Common Scenarios

First Home Buyer

  • Consider stamp duty concessions in your state
  • May be eligible for First Home Owner Grant (FHOG)
  • LMI costs are higher with smaller deposits
  • Consider longer loan terms for lower initial payments

Investment Property

  • Higher interest rates typically apply
  • Consider interest-only loans for tax benefits
  • Factor in rental income vs mortgage payments
  • Account for property management fees

Refinancing

  • Include break costs from current loan
  • Consider new application fees
  • Factor in potential savings from lower rates
  • Account for any new LMI requirements

Important: This calculator provides estimates for planning purposes only. Actual loan terms, rates, and fees may vary significantly between lenders. These calculations are estimates only and should not be considered as loan offers or guaranteed rates. Always consult with qualified financial professionals before making borrowing decisions.