Savings .com.au

Roughly every six weeks, the Reserve Bank of Australia (RBA) board meets to discuss Australia’s official cash rate. This sets the standard market interest rate for lending and borrowing money between banks. Banks and other lenders then set their own interest rates on the products they offer including home loans, savings accounts, and term deposits. Banks and lenders pay close attention to the cash rate as it affects their cost of doing business between themselves.

If there is a rise or fall in the cash rate, then the interest rate on a variable-rate mortgage is likely to rise or fall by a similar amount, depending on the lender. Most lenders generally respond to any moves the RBA makes, raising their interest rates when the cash rate increases and dropping their rates when it decreases.

Not all interest rate movements are linked to changes in the official cash rate. Banks and lenders shift the interest rates on their products regularly. This can be because of competition, business strategies, customer attraction or retention, or risk assessments. As a borrower, it pays to keep on top of any changes to the interest rate you are being charged on your mortgage to ensure it is competitive in the market.

How Savings.com.au’s Mortgage Interest Rate Change Calculator can help you

The Savings.com.au mortgage interest rate change calculator can show you how your home loan repayments could hypothetically shift if your lender changes your interest rate.

It’s important to be aware of how rate changes affect your home loan repayments, particularly when there is the potential for rate increases. Knowing the extent of higher repayments can help you reconfigure your budget to accommodate future interest rate increases. It also gives you time to consider refinancing your home loan if higher payments seem too daunting.

In the case of interest rate decreases, the calculator allows you to see how much your minimum repayments could drop by. Whenever the interest rate falls on your home loan, it’s wise to continue making the previous higher repayments if you can manage them. Any extra payment above the minimum goes towards paying down the principal of your loan and can considerably reduce the length of your loan.


Looking for a home loan?

Buying a home or looking to refinance? The table below features home loans
with some of the lowest interest rates on the market for owner occupiers.

Lender

Variable
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Online ExclusiveUp To $4K Cashback
  • Immediate cashback upon settlement
  • $2,000 for loans up to $700,000
  • $4,000 for loans over $700,000
Online ExclusiveUp To $4K Cashback

loans.com.au – Variable Basic Cashback Home Loan (Principal and Interest) (LVR < 70%)

  • Immediate cashback upon settlement
  • $2,000 for loans up to $700,000
  • $4,000 for loans over $700,000
Variable
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Apply In Minutes
  • No application or ongoing fees. Annual rate discount
  • Unlimited redraws & additional repayments. LVR <80%
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
Apply In Minutes

Unloan – Variable Rate Home Loan LVR < 80%

  • No application or ongoing fees. Annual rate discount
  • Unlimited redraws & additional repayments. LVR <80%
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
Variable
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Unlimited Redraws
  • No annual fees - None!
  • Get fast pre-approval
  • Unlimited additional repayments free of charge
  • Redraw freely - Access your additional payments when you need them
  • Home loan specialists available today
Unlimited Redraws

ubank – Neat Variable Home Loan (Principal and Interest) (LVR < 60%)

  • No annual fees - None!
  • Get fast pre-approval
  • Unlimited additional repayments free of charge
  • Redraw freely - Access your additional payments when you need them
  • Home loan specialists available today
Variable
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4.6 Star Customer Ratings
4.6 Star Customer Ratings

loans.com.au – Variable Home Loan (LVR < 90%)

    Variable
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    Flexible Home Loan Options
    • $0 application fee & fast turnaround times
    • Estimate your borrowing power in as little as 1 minute
    Flexible Home Loan Options

    Macquarie Bank – Offset Package Home Loan (Principal and Interest) (LVR 60%-70%)

    • $0 application fee & fast turnaround times
    • Estimate your borrowing power in as little as 1 minute
    Fixed
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    Macquarie Bank – Basic Home Loan Fixed (Principal and Interest) (LVR 70%-80%) 3 Years

      Variable
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      ubank – Neat Variable Home Loan (Principal and Interest) (LVR ≤ 80%)

      • Home loan specialists available today
      Fixed
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      Westpac – Premier Package Fixed Options Home Loan (Principal and Interest) 1 Year (LVR < 70%)

        Variable
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        Commonwealth Bank – Wealth Package Variable Home Loan (Principal and Interest) (LVR 70% - 80%)

          Variable
          More details

          NAB – Base Variable Home Loan (Principal and Interest) (New Customer)

            Fixed
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            ANZ – Fixed Rate Home Loan (Principal and Interest) 5 Years (LVR < 80%)

              Variable
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              loans.com.au – Solar Home Loan (Principal & Interest) (LVR < 90%)

                Variable
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                Heritage Bank – Discount Variable Home Loan ($150k+) (LVR < 70%)

                  Fixed
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                  Newcastle Permanent – Premium Plus Package Fixed Rate Home Loan Special (Principal and Interest) 2 Years

                    Fixed
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                    Commonwealth Bank – Fixed Rate Home Loan (Principal and Interest) 3 Years

                      Fixed
                      More details

                      HSBC – Package Fixed Rate Home Loan (Principal and Interest) 4 Years (LVR < 80%)

                        Fixed
                        More details

                        IMB Bank – Fixed Rate Home Loan (Principal and Interest) 3 Years (LVR ≤ 80%)

                          Fixed
                          More details

                          ING – Fixed Rate Home Loan 5 Years (LVR < 80%)

                            Fixed
                            More details

                            Newcastle Permanent – Fixed Rate Home Loan (Principal and Interest) 5 Years

                              Fixed
                              More details

                              Newcastle Permanent – Premium Plus Package Fixed Rate Home Loan (Principal and Interest) 1 Year

                                Important Information and Comparison Rate Warning

                                Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of May 26, 2024. View disclaimer.