Loan Repayment Calculator

Interest rates are regularly the hot topic of headlines, but what exactly are they and how do they impact your loan?

When you’re choosing which lender to go with, or which finance broker is best for your situation, you’ll also need to determine if you want to fix your interest rate or have a variable rate attached to your loan.

Fixed rate loans give you stability in cash flow with consistent repayment costs, and in a low-rate environment can offer the potential to lock in a low rate for an extended period. On the flipside, these loans generally have limited add-ons such as redraw facilities or the ability to make additional repayments to pay your loan off sooner. Variable rates usually offer more features and flexibility, with the added ability to take advantage of rate decreases. However, when volatile variable interest rates are increased by your lender, repayments also increase.

Buyers can also choose a third option, to split their loan with a portion on a fixed rate and the other variable. This can suit buyers who want to take advantage of the benefits of both rate options while also minimising the risks of each one.

Life changes, and so too can your goals and financial situation. This is why it’s important to regularly review your mortgage to ensure you are getting the best rates and lending product for your circumstances. Your mortgage broker can provide reviews and find products that suit your goals and accommodate your current life stage.

Interest rates aren’t the only factor to consider when looking at your borrowing options. Loan features, upfront and ongoing fees, and your cash flow capacity can be just as important to think about in the short and long-term life of your loan. Get professional advice to find the best options for you and your property goals.