A variable home loan can give you freedom and flexibility but also open you to interest rate hikes. If rates rise, can your budget handle higher mortgage repayments? Find out now with our home loan rate change calculator!
Mozo’s home loan rate change calculator tells you how much an interest rate hike could add to your monthly mortgage repayments. It does this by calculating your repayments based on your:
Loan amount
Loan term
Loan type
Repayment frequency
Current interest rate
Rate hike size
It then compares the numbers and finds the difference. All you need to do is put in the numbers.
How much your mortgage increases after an interest rate change depends on multiple factors, such as the size of your remaining loan amount, loan term, and current home loan interest rate.
A minor rate hike of several basis points (like 0.05%) will probably only add around $5 to $15 to your monthly repayments. However, a larger rate hike (0.25%) could add $75 or more.
Mozo’s mortgage home loan rate change calculator starts with a standard rate hike size of 0.25% so you can see how a rate rise could affect you.
However, it also lets you look ahead with larger, more cumulative rate increases of 0.75% or more, so you can plan for future rate hikes or compare variable home loans.
If your home loan interest rate is about to increase, there are some things you can do.
The first step is determining how much the rate change will add to your household budget. Our rate change calculator can help you with this.
The second step is to call your mortgage lender. See if you can negotiate your interest rate down to something more manageable, especially if your lender offers cheaper rates to new customers but not to you, their loyal borrower.
The final step is to look at your finances long-term. Can you handle the rate hike if you tighten your belt or take on extra work hours, or do you need a rate change? Outside of using interest saving mortgage features like an offset account, it could also be worth looking into refinancing.
Owner Occupier, LVR <80%
Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply online in minutes.
Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply online in minutes.
Read our Mozo Review to learn more about the Unloan Variable
Fixed, Owner Occupier, Principal & Interest, LVR<70%
No upfront or ongoing fees. Free extra repayments and redraw facility. Option to earn Qantas points. Min 30% deposit required. Borrow up to $750,000.
No upfront or ongoing fees. Free extra repayments and redraw facility. Option to earn Qantas points. Min 30% deposit required. Borrow up to $750,000.
Read our Mozo Review to learn more about the Basic Home Loan
Owner Occupier, Principal & Interest, LVR 70-80%
Enjoy competitive rates for owner occupiers. Enjoy unlimited free extra repayments. Flexibility to redraw additional payments for free. No ongoing monthly service fee. Settlement fee waived on new borrowings from $50,000 (T&Cs apply).
Enjoy competitive rates for owner occupiers. Enjoy unlimited free extra repayments. Flexibility to redraw additional payments for free. No ongoing monthly service fee. Settlement fee waived on new borrowings from $50,000 (T&Cs apply).
Read our Mozo Review to learn more about the Discounted Home Value Loan
Investment, LVR <80%
Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for investors. No application or banking fees. No monthly account keeping or early exit fees. Apply online in minutes.
Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for investors. No application or banking fees. No monthly account keeping or early exit fees. Apply online in minutes.
Read our Mozo Review to learn more about the Unloan Variable
Owner Occupier, Principal & Interest, <80% LVR
Enjoy up to $3000 cashback for eligible first home buyers and $2000 cashback for refinancers on eligible home loans with the ANZ Fixed Rate Home Loan. Get the security of repayment certainty with a competitive locked in rate. No ongoing fees to pay. Offset account on 1-year fixed loans ($10/month fee applies). Interest-only payments allowed.
Enjoy up to $3000 cashback for eligible first home buyers and $2000 cashback for refinancers on eligible home loans with the ANZ Fixed Rate Home Loan. Get the security of repayment certainty with a competitive locked in rate. No ongoing fees to pay. Offset account on 1-year fixed loans ($10/month fee applies). Interest-only payments allowed.
Read our Mozo Review to learn more about the Fixed Rate
Owner Occupier, LVR<60%, Principal & Interest
Enjoy a low rate home loan with $0 application fee and $0 ongoing fees. Flexibility to split your loan and set different repayment types. Fee free redraw from your loan using online banking. Flexible ways to repay. 40% Deposit required.
Enjoy a low rate home loan with $0 application fee and $0 ongoing fees. Flexibility to split your loan and set different repayment types. Fee free redraw from your loan using online banking. Flexible ways to repay. 40% Deposit required.
Read our Mozo Review to learn more about the Basic Home Loan
LVR<80%, Owner Occupier, Principal & Interest
Get a competitive variable rate with ING’s Mortgage Simplifier. Free extra repayments, no monthly or annual fees. Freedom to make free extra repayments or redraws.
Get a competitive variable rate with ING’s Mortgage Simplifier. Free extra repayments, no monthly or annual fees. Freedom to make free extra repayments or redraws.
Read our Mozo Review to learn more about the Mortgage Simplifier
Owner Occupier, LVR<60%, Principal & Interest
Ability to open up to 10 offset accounts per loan account. Fast online application. Linked Debit Mastercard® with fee-free access at ATMs across Australia. Package a credit card with your home loan and the annual card fee will be waived (T&Cs apply). 40% deposit required.
Ability to open up to 10 offset accounts per loan account. Fast online application. Linked Debit Mastercard® with fee-free access at ATMs across Australia. Package a credit card with your home loan and the annual card fee will be waived (T&Cs apply). 40% deposit required.
Read our Mozo Review to learn more about the Offset Home Loan
Principal and Interest, LVR <90%
Affordable home loan rate for buyers or refinancers. No monthly or ongoing fees. Option to add an offset for 0.10%. Access to savings with unlimited redraws available. Minimum 10% deposit required.
Affordable home loan rate for buyers or refinancers. No monthly or ongoing fees. Option to add an offset for 0.10%. Access to savings with unlimited redraws available. Minimum 10% deposit required.
Read our Mozo Review to learn more about the Variable Home Loan 90
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*WARNING: This comparison rate applies only to the example or examples given. Different 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. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.
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Depending on how the economy fares, the Reserve Bank of Australia (RBA) might decide to raise or lower official interest rates to steer things in the right direction.
For example, if the economy is underperforming, the RBA might lower interest rates to stimulate demand. If demand is too high, the RBA might raise interest rates to keep inflation in check.
See more about how this works in our monetary policy guide.
Home loans use the official cash rate as a benchmark for their variable lending rates. If the cash rate goes up or down, we can usually expect home loan interest rates to move by the same amount.
Home loan interest rates are typically much higher than the cash rate. This markup covers a lender’s business costs and gives them a profit.
For fixed home loans, lenders typically look at the cash rate, economy, and other lenders to set their rates, since they don’t change for the fixed terms.
If your lender decides to hike your home loan interest rate, you can expect your mortgage repayments to increase. If it cuts rates, you can expect your loan repayments to decrease.
Rising interest rates usually cause a slowdown in the Australian property market. This is because the cost of borrowing increases, so home buyers can sometimes find it harder to get a mortgage.
Lower interest rates typically cause a boom in the property market for the opposite reason: home buyers suddenly find it much easier to finance a mortgage.
Your mortgage lender has the power to adjust the variable interest rate on your mortgage, but you have some power over your interest rate, too. You can change your interest rate by refinancing or negotiating a cheaper rate with your lender.