Rates, Costs and 2026 Rules
What sets an Australian home loan rate, what the fees and comparison rate really tell you, and the lending rules that apply in 2026.
home loan rates and repayments
Home loan rates and repayments, worked out line by line
A quarter of a percentage point, an annual package fee or a reset loan term can move your repayments by thousands of dollars over the life of a loan. These guides show how Australian home loans are priced and repaid, with every example calculated in full.
- See what drives your rate: LVR, loan purpose, repayment type, fees and the comparison rate
- Calculate repayments, offset savings and refinance break-even with the tools
- Check the rules and your rights: ASIC, APRA, the National Credit Code and AFCA
Explore by topic
Repayment Examples and Checklists
Repayment calculations, offset and extra repayment examples, a refinance break-even worked example and checklists for choosing a loan.
Refinancing Mistakes and Official Sources
How refinancing and fixed-rate decisions go wrong, how to get a better rate from your lender, hardship help, AFCA complaints and where to check the facts.
Start here
Repayment Examples and Checklists
How to calculate home loan repayments: the formula, a full example and a spreadsheet method
Calculate Australian home loan repayments by hand or in a spreadsheet, see how interest and principal split each month, and check the balance you will owe after 5, 10 or 20 years.
Rates, Costs and 2026 Rules
Comparison rate explained: what it includes and when it misleads
What the comparison rate on an Australian home loan includes, why it uses a $150,000 loan over 25 years, and how to compare package and basic loans for your own loan size.
Rates, Costs and 2026 Rules
Home loan interest rates and repayments in Australia: what sets them in 2026
How Australian lenders set your home loan rate, how that rate turns into a monthly repayment, and which factors you can change, with worked examples and official sources.
Refinancing Mistakes and Official Sources
Home loan refinancing mistakes that cost Australians thousands, and how to avoid them
The most expensive refinancing and fixed rate mistakes on Australian home loans, from term resets and revert rates to cashback traps and LMI, with the dollar cost of each.
Repayment Examples and Checklists
Offset account vs redraw: what $40,000 really saves on your home loan
How an offset account and a redraw facility reduce home loan interest in Australia, why the saving beats a taxed savings account, and when redraw is risky, with worked examples.
Repayment Examples and Checklists
Is refinancing worth it? A worked example with break-even, cashback and term reset
A full Australian home loan refinance calculation: switching costs, monthly saving, break-even months, the effect of a cashback, break costs and the trap of resetting to 30 years.
Tools
Home Loan Repayment Calculator
Work out the monthly repayment, total interest and remaining balance each year on a principal and interest home loan.
Refinance Break-even Calculator
Compare your current repayment with a new lender's rate, see the monthly saving and how many months it takes to recover the switching costs.
Home Loan and Refinance Checklist
Tick off the documents, questions and checks before you apply for a new home loan or refinance an existing one.
Home loan types and features compared
| Option | How it works | Good for | Watch out for |
|---|---|---|---|
| Basic variable | Rate moves with the lender's decisions, usually after RBA changes; few features, often no annual fee | Borrowers who want a low rate and will not use an offset | May have limited or no offset; rate can rise at any time |
| Package variable | Variable rate with an annual package fee that bundles an offset account, credit card or fee waivers | Larger loans with meaningful offset balances | Annual fee can outweigh the rate discount on a smaller loan; check the comparison rate |
| Fixed rate (1 to 5 years) | Rate locked for the term, then reverts to the lender's variable rate | Tight budgets that need certainty for a set period | Break costs if you sell or refinance early; extra repayments often capped; revert rate can be high |
| Split loan | Part fixed, part variable, often with the offset on the variable part | Wanting some certainty and some flexibility | Two sets of terms; the fixed part still carries break costs |
Frequently asked questions
How much are repayments on a $600,000 home loan?
At an illustrative 6.00% a year over 30 years, principal and interest repayments are about $3,597 a month. At 6.50% they are about $3,792. Each 0.25 percentage point adds roughly $97 a month on that loan. Use the repayment calculator with the rate you are quoted.
What is the difference between the interest rate and the comparison rate?
The interest rate is what you are charged on the balance. The comparison rate adds most upfront and ongoing fees and is calculated on a standard $150,000 loan over 25 years, so it is a guide only for loans of other sizes. See the comparison rate guide.
Is refinancing worth it for a 0.5% lower rate?
Often, if your balance is large and the switching costs are modest. On an illustrative $520,000 with 26 years left, 0.6 percentage points saves about $194 a month and recovers $1,500 of costs in 8 months. First ask your current lender to match. Run your figures in the refinance calculator.
Do I need a 20% deposit to buy a home in Australia?
No, but below 20% most lenders charge lenders mortgage insurance. Eligible buyers may use the Home Guarantee Scheme with a 5% deposit, or 2% for single parents under the Family Home Guarantee, without LMI. Check eligibility and price caps with Housing Australia.
Do fortnightly repayments really save money?
Paying half the monthly amount every fortnight means 26 half-payments, or 13 monthly payments a year. On an illustrative $600,000 loan at 6% that cuts about five and a half years off the term. Paying the lender's calculated fortnightly amount does not have the same effect. See fortnightly vs monthly.
Can a lender charge me to leave a variable home loan?
Exit fees on variable home loans taken out from 1 July 2011 are banned. Lenders can still charge a discharge or settlement fee that reflects their administrative cost, and fixed rate loans can carry break costs. Land titles offices also charge fees to discharge and register mortgages.
Who can I complain to about my home loan lender or broker?
Complain to the lender or broker first through its internal dispute resolution process. If it does not resolve the complaint, you can take it free to the Australian Financial Complaints Authority (AFCA). See hardship and AFCA complaints.
How this site is made
Home Loan Sums is an independent information project. Guides are drafted with the help of AI writing tools and checked against official and primary sources before publication; see our Editorial Policy. We are not affiliated with any provider mentioned on the site and do not sell products or services.