Use our Home Loan Rate Change Calculator to see how your repayments could be affected by a higher or lower interest rate.
Interest rates from
6.04%
p.a.
Comp. rates from^
6.08%
p.a.
Variable Bare Home Loan 90% LVR
Borrow up to $2m with competitive variable rates from 6.04% p.a. (comparison rate^ 6.08% p.a.). Enjoy flexible payment options, zero monthly or ongoing fees, unlimited free redraws and up to 30 year terms. 90% Max LVR applies. Visit site for T&Cs and to check eligibility.
Here are the details you’ll need to enter about your home loan.
The interest rate you’re currently paying on your home loan.
Whether you’re making principal and interest or interest-only repayments.
The percentage change in your interest rate - either an increase or decrease.
The amount you owe on your home loan.
The number of years left on your home loan (typically 25 or 30 years, though some lenders now offers 40-year mortgages)
Once you’ve entered these details, our rate change calculator will give you an estimate of your current and new minimum repayments. It’ll also give you the estimated repayment change. You can choose to see weekly, fortnightly or monthly repayments.
If you have a variable rate home loan and your lender raises its rates, your minimum repayments will go up. With a fixed rate mortgage, your repayments won’t change until the end of the fixed term. To see how a rate increase will affect your mortgage, use the calculator on this page to check the difference in your repayments.
Generally a rate change won’t change your regular repayment by a large amount, but over time an increase could mean paying significantly more interest overall. If your rate changes, it might be a good time to consider refinancing your home loan to a cheaper rate.
If interest rates drop, the impact it’ll have on your mortgage depends on the type of loan you have. With a variable rate loan, your repayments will go down as your lender drops its rates. But, with a fixed rate loan, your repayments will stay the same for the fixed period (i.e. one to five years).
This table estimates how much a 0.25% rate change will affect your home loan repayments.
Loan amount | $400,000 |
|---|---|
Interest rate | 6.50% |
Estimated monthly repayments | $2,701 |
Rate & repayment increase |
|
Rate & repayment decrease |
|
Loan amount | $600,000 |
Interest rate | 6.50% |
Estimated monthly repayments | $4,052 |
Rate & repayment increase |
|
Rate & repayment decrease |
|
Loan amount | $800,000 |
Interest rate | 6.50% |
Estimated monthly repayments | $5,402 |
Rate & repayment increase |
|
Rate & repayment decrease |
|
Loan amount | $1,000,000 |
Interest rate | 6.50% |
Estimated monthly repayments | $6,753 |
Rate & repayment increase |
|
Rate & repayment decrease |
|
| Loan amount | Interest rate | Estimated monthly repayments | Rate & repayment increase | Rate & repayment decrease |
|---|---|---|---|---|
$400,000 | 6.50% | $2,701 |
|
|
$600,000 | 6.50% | $4,052 |
|
|
$800,000 | 6.50% | $5,402 |
|
|
$1,000,000 | 6.50% | $6,753 |
|
|
 | Laboratories Credit Union Simple Home Loan Owner OccupiedInterest rate 5.69% per annum (variable) Comparison rate 5.71% per annum App Fee: $200 Max LVR 95% | Compare now on Money.com.au or visit site |
 | South West Slopes Bank Intro Discounted Standard Variable Home LoanInterest rate 5.70% per annum (variable) Comparison rate 6.06% per annum Redraw Offset Max LVR 90% | Compare now on Money.com.au or visit site |
 | Pacific Mortgage Group Owner Occupied Variable Home LoanInterest rate 5.84% per annum (variable) Comparison rate 5.84% per annum Redraw Max LVR 80% | Compare now on Money.com.au or visit site |
 | Virgin Money Lite Home Loan VariableInterest rate 5.84% per annum (variable) Comparison rate 5.86% per annum Redraw Split Loan Max LVR 80% | Compare now on Money.com.au or visit site |
 | Gateway Bank Green Plus Home LoanInterest rate 5.85% per annum (variable) Comparison rate 6.14% per annum Redraw Offset Max LVR 80% | Compare now on Money.com.au or visit site |
There isn’t a simple answer to this question as it depends on multiple factors. Sometimes rates may remain unchanged for months or even years. At other times, they can change several times within a single month.
Interest rates on home loans can change based on adjustments to the cash rate, which almost always leads lenders to adjust their rates. Lenders may also change rates to cover their operating costs, make their loans more competitive, increase their profit margins to keep shareholders happy, or in response to global economic conditions.
A 1% increase to your interest rate will result in higher mortgage repayments. For example, if your rate moves from 5.50% to 6.50% on a $600,000 home loan, it’ll add another $385 to your monthly repayments. This is based on an owner-occupier loan making principal and interest repayments over 30 years.
In recent years, the RBA has typically raised the cash rate by 0.25% (25 basis points) at a time. So, if there were a 1% increase, it would usually happen gradually over several adjustments. For example, since 2020, the RBA has increased the cash rate nine times by 0.25%, and only four times by 0.50%. It’s worth noting that factors other than changes to the cash rate can also influence lenders to raise their rates.
If interest rates increase, your mortgage repayments will typically move in the same direction. Rate changes will only affect variable rate loans, not fixed rate loans. Your lender will usually notify you before making any changes, giving you time to prepare and adjust your budget.
Home loan comparison rates are calculated based on a loan amount of $150,000 repaid over a 25-year term with monthly repayments. The comparison rates only apply to the examples given. Different loan 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. Check with the provider for full loan details, including rates, fees, eligibility and terms and conditions to make sure the product is right for you.
General information only
The information on this page is general in nature and has been prepared without considering your objectives, financial situation or needs. You should consider whether the information provided and the nature of any home loan product is suitable for you and seek independent financial advice if necessary.
We are not providing you with a recommendation or suggestion about a particular home loan. You should read the relevant disclosure statements or other offer documents before deciding whether to apply for or continue to use a particular product.
What products, features and information are shown
While we make every effort to ensure all home loans available in Australia are shown in our comparison tables, we do not guarantee that all products are included.
Our product comparisons may not compare all home loan features and attributes relevant to you.
Product information, such as interest rates, fees and charges, is subject to change without notice. Before acting on any information, you should confirm the relevant product information with the lender.
How home loans are sorted and filtered by default
Users can easily change the sort order and apply product filters to our product comparison tables. However, when you arrive on a page initially, by default home loans are sorted by:
Some home loan products listed in our tables are available through a mortgage broker. These are the products with an option to ‘Check Eligibility on Money.com.au’. Mortgage brokers may not be able to offer loans from every provider and there may be more suitable loans for your personal circumstances.
Mortgage brokers are not authorised by Money Australian Credit Licence and operate under their own Australian Credit Licence, or as a credit representative of another Australian Credit Licensee. Mortgage brokers can make recommendations about home loan products that may suit your objectives, financial situation and needs.
Our tables feature all home loans available from lenders on our database that match the search criteria selected. Lenders do not pay to feature in our tables, nor do we earn commission if you click to visit a lender’s website. The order of the products in the table is not influenced by any commercial arrangements.
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