Home Loan Interest Rate Change Calculator

Here are the details you’ll need to enter about your home loan.

1

Current interest rate

The interest rate you’re currently paying on your home loan.

2

Repayment type

Whether you’re making principal and interest or interest-only repayments.

3

Interest rate change

The percentage change in your interest rate - either an increase or decrease.

4

Current loan balance

The amount you owe on your home loan.

5

Loan term

The number of years left on your home loan.

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.

How much will a rate increase affect my mortgage?

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	+0.25% (6.75%) +$63
Rate & repayment decrease	-0.25% (6.25%) -$62
Loan amount	$600,000
Interest rate	6.50%
Estimated monthly repayments	$4,052
Rate & repayment increase	+0.25% (6.75%) +$94
Rate & repayment decrease	-0.25% (6.25%) -$93
Loan amount	$800,000
Interest rate	6.50%
Estimated monthly repayments	$5,402
Rate & repayment increase	+0.25% (6.75%) +$126
Rate & repayment decrease	-0.25% (6.25%) -$124
Loan amount	$1,000,000
Interest rate	6.50%
Estimated monthly repayments	$6,753
Rate & repayment increase	+0.25% (6.75%) +$157
Rate & repayment decrease	-0.25% (6.25%) -$156

Loan amount	Interest rate	Estimated monthly repayments	Rate & repayment increase	Rate & repayment decrease
$400,000	6.50%	$2,701	+0.25% (6.75%) +$63	-0.25% (6.25%) -$62
$600,000	6.50%	$4,052	+0.25% (6.75%) +$94	-0.25% (6.25%) -$93
$800,000	6.50%	$5,402	+0.25% (6.75%) +$126	-0.25% (6.25%) -$124
$1,000,000	6.50%	$6,753	+0.25% (6.75%) +$157	-0.25% (6.25%) -$156

This example is based on an owner-occupier home loan over 25 years with principal & interest repayments. Other fees and charges applied by lenders would also affect the repayment amount.

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FAQs about interest rate changes

How often do interest rates change?

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.

How much does a 1% interest rate increase add to a mortgage payment?

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.

What happens to my mortgage if interest rates increase?

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 Rate Change Calculator

Calculate your rate change

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How to use our rate change calculator

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