Australian Home Loan Calculator — Monthly Repayments and Rates

How Australian home loans work

Australian home loans are typically variable rate — your rate (and payment) can change when the RBA changes the cash rate. You can also choose a fixed rate for 1–5 years.

Current rates (2025): Variable rates around 6%–7%. Fixed rates (1-year) around 5.5%–6.5%.

Offset accounts

Many Australian mortgages come with an offset account — a savings account linked to your loan. Every dollar in the offset reduces the interest you pay.

If you have a $500,000 mortgage at 6.5% and $50,000 in offset, you only pay interest on $450,000. That saves roughly $3,250/year in interest.

LMI (Lenders Mortgage Insurance)

Like CMHC in Canada, Australian lenders require LMI if your deposit is under 20%. LMI is paid once and can be added to the loan. On a $600,000 purchase with 10% deposit, LMI could be $8,000–$15,000.

First Home Owner Grant (FHOG)

First-time buyers may qualify for the FHOG — amounts vary by state but are typically $10,000–$30,000.