Aussiewide Financial Services Geelong

Your Local Geelong Mortgage Broker

Thank you for supporting Keys For A Cause! We have raised $73,600.00 for local charities.

Call us: (03) 5222 7453 Schedule A Chat
Home>Home Loan Calculators>Loan Comparison Tool

Loan Comparison Tool

Loan Comparison Tool

[CALCULATOR WIDGET GOES HERE]

On this page:

What can you compare with this tool?

This tool lets you put two loan scenarios side by side and see exactly how they stack up. Change the loan amount, interest rate, term or repayment type and the numbers update instantly. You can also add extra repayments to either scenario to see how much time and interest that knocks off.

It’s useful whether you’re choosing between two specific products, trying to understand the real cost difference between a fixed and variable rate, or just want to see what happens if you pay a little more each month.

How to use the tool

Set up each scenario by entering the following:

  • Loan details: The amount, term and interest rate for each loan you want to compare
  • Repayment type: Principal and interest or interest-only
  • Extra repayments: Any additional amount you plan to pay each month on top of the minimum
  • Repayment frequency: Monthly, fortnightly or weekly

The tool will show you the regular repayment amount and total interest payable for each scenario side by side. The difference between those two interest figures is often the most useful number on the page.

What the numbers actually tell you

The monthly repayment figure is what most people focus on. But the total interest payable over the life of the loan is often more revealing.

A loan with a slightly lower monthly repayment can easily cost you $30,000 or $40,000 more in interest over 30 years if the rate is higher or the term is longer. That gap is easy to miss when you’re focused on what’s coming out of your account each fortnight.

The extra repayments feature is worth spending a few minutes on too. On a $600,000 loan at 6%, adding $200 extra per month saves around $60,000 in interest and cuts roughly three years off the loan. Our guide to extra mortgage repayments goes deeper on this if you want to see how the maths plays out.

The features worth comparing beyond the rate

Rate is only one part of what makes a loan right for your situation. A few other things are worth looking at when you’re comparing options.

Fixed-rate loans offer repayment certainty but typically limit how much extra you can pay each year and can come with significant break costs if you exit early. Variable loans tend to offer more flexibility, including offset accounts, unlimited extra repayments and redraw facilities. Some borrowers split their loan between both. We’ve covered the fixed vs variable decision in detail in our article Fixed Rate vs Variable Home Loan Rate.

Interest-only loans are worth understanding too. Repayments are lower during the interest-only period, but the balance doesn’t reduce and repayments jump once that period ends. They’re common in investment strategies but aren’t right for everyone.

If you’re refinancing rather than buying, it’s also worth factoring in any discharge fees, application fees and the risk of resetting your loan term to 30 years unintentionally. Our article on the costs and risks of refinancing walks through what to watch out for.

When comparison matters most

This tool is useful at a few specific points in the home loan journey.

If you’re buying for the first time, comparing loans before you apply helps you understand what you’re signing up for over the long term – not just the next 12 months. If you already have a loan, running your current rate against what’s available now can tell you pretty quickly whether it’s worth having a conversation about repricing or refinancing. And if your fixed rate is coming up for expiry, comparing your rollover options before the term ends is genuinely important – lenders will move you onto their standard variable rate automatically if you don’t act, which is rarely the best rate available.

Want help running the numbers?

This tool gives you a solid starting point. But a calculator can only compare the inputs you give it. A broker can compare hundreds of actual loan products from more than 40 lenders, factor in your full financial situation and tell you not just which loan looks better on paper but which one you’re likely to get approved for and at what rate.

If you’d like that conversation, a Free Lending Strategy Session with one of our Geelong brokers costs you nothing and usually takes about an hour.

Other calculators that might help

This calculator provides general estimates only and does not constitute financial advice. Please speak with a licensed mortgage broker before making any borrowing decisions.