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Home Loan Repayment Calculator Australia 2026
See exactly how much interest you save and how many years you cut off your home loan by making extra repayments. Compare lump sum, fortnightly switching and monthly overpayments.
โ Extra Repaymentsโ Lump Sum Calculatorโ Fortnightly vs Monthlyโ Loan Comparisonโ 2026 Rates
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Enter your loan balance, rate and remaining term โ instant repayment calculation.
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Set your extra repayment amount โ weekly, fortnightly or monthly.
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See total interest saved, years cut and your full year-by-year schedule.
Reviewed by the ozfinancecalc.com.au editorial team ยท Last reviewed: May 2026 ยท All rates current as of May 2026Sources: RBA ยท ASIC MoneySmart
๐ฐ Extra Repayments
๐ต Lump Sum Payment
๐ Fortnightly Switch
๐ Compare Two Loans
๐ข
Extra Repayments Calculator
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Current avg variable rate: ~6.25โ6.48% p.a. RBA data
$
$
One-off extra payment applied now
Weekly
Fortnightly
Monthly
$
๐ Summary
๐ Year-by-Year Schedule
๐ Interest Breakdown
โ๏ธ Scenarios
Per ASIC MoneySmart, making extra repayments directly reduces the principal, which reduces the interest charged each period. Even small consistent extra payments compound significantly over a 25-30 year loan.
Year-by-year comparison of your loan balance with and without the extra repayments.
Year
Standard Balance
With Extra Payments
Interest Saved (yr)
Ahead By
With Extra Repayments
Without Extra Repayments
Compare different extra repayment amounts to find what works for your budget.
Extra Payment
Interest Saved
Time Saved
New Payoff Date
Monthly Cost
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๐ฆ Are You On the Best Available Rate?
Overpaying a high-rate mortgage costs more than it should. Even a 0.5% rate reduction on a $550,000 loan saves $22,000+ in interest over 25 years โ before any extra repayments. Compare your options in under 2 minutes.
RBA hikes to 4.35% โ third 2026 increase. Variable mortgage rates rise 0.25% within weeks at most lenders.
17 Mar 2026
RBA hikes to 4.10% โ second rise. CBA, ANZ, NAB pass on full 0.25% to variable rate customers.
Now
Refinancing at record levels โ Australians switching lenders at highest rate since 2023. Online lenders offering 5.89โ6.19% variable.
8 Jul 2026
Next RBA meeting โ markets pricing 60% chance of hold, 40% further hike. Inflation data key.
๐
2026 Home Loan Rate Comparison โ Top Australian Lenders
Variable rates for owner-occupiers paying principal and interest. Rates current as of May 2026 โ always confirm with lenders before refinancing.
Lender
Variable Rate
Comparison Rate
Max LVR
Type
โญ Unloan (CBA backed)
5.89%
5.90%
80%
Online, variable
EASY Street Financial
5.99%
6.01%
80%
Online, variable
ING
6.09%
6.11%
80%
Online, variable
Macquarie Bank
6.14%
6.17%
80%
Variable
Newcastle Permanent
6.19%
6.22%
95%
Variable
Bendigo Bank
6.29%
6.32%
90%
Variable
Westpac
6.48%
6.52%
95%
Variable
Commonwealth Bank
6.49%
6.53%
95%
Variable
ANZ
6.54%
6.58%
95%
Variable
NAB
6.59%
6.63%
95%
Variable
โ ๏ธ Rates indicative for owner-occupiers P&I with LVR โค80% and good credit unless stated. โญ = best in category. Comparison rates based on $150,000 over 25 years. Always request a specific quote. Last verified May 2026.
๐บ๏ธ
Australian Mortgage Market โ By State (2026)
Average home loan data by state sourced from ABS lending indicators and lender data. Updated March 2026.
State
Avg New Loan Size
Avg Variable Rate
Avg Term
Median Property Price
NSW
$719,000
6.42%
28.2 yrs
$1.18M (Sydney metro)
VIC
$612,000
6.48%
27.8 yrs
$940k (Melbourne metro)
QLD
$561,000
6.51%
27.5 yrs
$870k (Brisbane metro)
WA โญ
$487,000
6.38%
26.9 yrs
$720k (Perth metro) โ fastest growing
SA
$445,000
6.49%
26.4 yrs
$720k (Adelaide metro)
TAS
$398,000
6.52%
25.8 yrs
$580k (Hobart metro)
๐ฆ๐บ National Avg
$624,000
6.47%
27.6 yrs
~$920k (capital cities)
Why are mortgage rates higher than the RBA cash rate?
The RBA cash rate (4.35% as of May 2026) is the overnight lending rate between banks. Your mortgage rate is higher because lenders add a margin for credit risk, operating costs and profit. The typical spread between the cash rate and a competitive variable mortgage rate is currently 1.5โ2.1 percentage points. On a $600,000 loan over 25 years, the difference between 6.0% and 6.5% is over $55,000 in total interest. ASIC MoneySmart home loans guide โ
๐ Fortnightly repayments โ pay 13 months in 12
๐ต Lump sum payments โ direct principal reduction
๐ฆ Compare rates โ 0.5% less = $55k saved
๐ก
Home Loan Repayment Tips โ Australia 2026
Start Small, Start Now
Even $200/month extra on a $550,000 loan at 6.25% saves over $60,000 in interest and cuts 4 years off the loan. Consistency over time is more valuable than large occasional payments.
Switch to Fortnightly Repayments
Paying half your monthly repayment fortnightly means 26 payments per year โ equivalent to 13 monthly payments instead of 12. This one change alone saves years and tens of thousands.
Check Overpayment Limits
Fixed rate loans typically cap overpayments at 10% of the outstanding balance per year. Exceeding this triggers break costs. Variable rate loans generally have no cap.
Offset vs Overpay
An offset account reduces interest identically to overpaying but keeps your money accessible. If you have an emergency fund, putting it in an offset account is often better than overpaying.
Refinance Before You Overpay
If you're on a rate 0.5%+ above the best available, refinancing first then overpaying compounds your savings. At 5.89% vs 6.49%, a $550,000 loan saves $60,000+ before any extra payments.
Use Tax Refunds and Bonuses
One-off lump sum payments are particularly powerful in early loan years when the balance is highest. A $10,000 lump sum in year 2 saves far more than the same amount in year 20.
โ
Home Loan Repayment FAQ โ Australia 2026
How much can I save by overpaying my mortgage?
The savings depend on your loan size, interest rate and how much extra you pay. On a $550,000 loan at 6.25% over 25 years, paying an extra $500/month saves approximately $120,000 in interest and cuts 7 years off the loan. Use the calculator above for your exact figures. Per ASIC MoneySmart, extra repayments are one of the most powerful strategies available to Australian home owners.
Can I overpay my mortgage without penalty in Australia?
For variable rate mortgages, generally yes โ there is no penalty for making extra repayments. Fixed rate mortgages typically have an annual overpayment cap of 10% of the outstanding balance before break costs apply. Always check your specific loan contract. If you want maximum flexibility to overpay, a variable rate loan or a fixed loan with an offset account provides the most options.
Is it better to use an offset account or make overpayments?
Both strategies reduce the interest charged on your loan in exactly the same way. The key difference is accessibility. An offset account keeps your money available for emergencies or opportunities. Overpayments permanently reduce your loan balance. If you have stable income and no anticipated need for the funds, overpaying is slightly simpler. If you want flexibility, an offset account is usually preferred. Per ASIC MoneySmart, offset accounts work best when you maintain a consistently high balance.
What happens if I switch to fortnightly mortgage repayments?
Paying fortnightly instead of monthly means you make 26 half-payments per year โ equivalent to 13 full monthly payments instead of 12. That extra month's payment each year goes entirely to reducing the principal. On a typical Australian mortgage, this switch alone can save $40,000โ$60,000 in interest and cut 3โ4 years off the loan with no change to your monthly budget. Contact your lender to arrange fortnightly direct debits.
Should I overpay my mortgage or invest the extra money?
At current Australian mortgage rates of 6%+, overpaying provides a guaranteed, risk-free return equivalent to your interest rate. To beat this with investments, you'd need consistent after-tax returns above 6% โ historically achievable with diversified equities over long periods, but with no guarantee. Tax situation matters: mortgage interest is not deductible on owner-occupied homes in Australia (unlike investment properties). Many financial advisers suggest a split approach โ some to home loan repayment, some to investment. Consult a licensed financial adviser for personalised advice.
How do I make extra repayments on my Australian mortgage?
Most Australian lenders allow extra repayments through: online banking (one-off or recurring transfers above the minimum), setting up a direct debit for a higher amount than required, or BPAY for lenders that support it. Contact your lender or check online banking to set up automatic extra repayments. For variable loans, this is usually simple and can be changed at any time. Always confirm your extra payments are being applied to the principal, not held in a suspense account.
What is the impact of a lump sum payment on my mortgage?
A lump sum payment directly reduces your outstanding principal, which reduces the interest calculated from that point forward. The earlier in the loan term you make a lump sum payment, the more powerful the effect โ because you save interest on the reduced balance for the full remaining term. A $20,000 lump sum in year 2 of a 25-year loan at 6.25% saves approximately $38,000 in total interest and cuts about 2 years off the loan. Use the Lump Sum tab in our calculator above to see your exact figures.
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Home loan repayments in Australia (2026)
Your repayment is set by three things: the loan amount, the interest rate, and the term. As of mid-2026, owner-occupier variable rates run about 5.74%โ5.99% p.a. from the big four (P&I, under 80% LVR), with the market average variable closer to 6.84% (RBA cash rate 4.35%). Repayments are amortised: early on most of each payment is interest, and only later does the balance fall quickly โ which is exactly why extra repayments made early are so powerful. Use the calculator above to see your repayment, total interest, and the effect of paying extra.
P&I vs interest-only
Principal & interest (P&I) pays the loan down and costs less over its life. Interest-only (IO) keeps repayments low temporarily but you owe the same at the end and pay more in total โ common for investors, rarely ideal for owner-occupiers. Lenders also price IO higher and assess it more strictly.
The real lever: extra repayments and offset
Because interest is charged on the balance daily, every extra dollar paid early saves compounding interest for the rest of the loan. Even modest extra repayments cut years off the term and tens of thousands in interest. An offset account achieves the same effect with flexibility: money sitting in it is netted off your loan balance for interest, so $20,000 in offset on a 6% loan saves about $1,200 a year in interest while staying accessible. The calculator above shows the term and interest saved for any extra-repayment amount.
Worked example: $600,000 at 6% over 30 years
A $600,000 loan at 6% p.a. over 30 years costs about $3,597/month, with roughly $695,000 in total interest over the full term. Add just $300/month extra and you'd repay it around 5 years sooner and save on the order of $130,000 in interest. Switch to fortnightly payments (see below) and you trim it further โ same budget, smarter timing.
The fortnightly trick
Pay half your monthly repayment every fortnight and you make 26 half-payments a year โ equal to 13 monthly payments, not 12. That one extra month per year, applied straight to principal, can shave years off a 30-year loan without you really noticing it.
Is it worth refinancing in 2026?
If your current rate is materially above the ~5.74%โ5.99% big-four range, refinancing can cut your repayment immediately. On a $600,000 loan, dropping from 6.84% to 5.84% saves roughly $380/month โ about $4,500 a year. Weigh that against switching costs (discharge, application, any break fees on fixed loans) โ a broker can run the numbers and tell you the break-even quickly. Loyalty rarely pays on a mortgage; lenders reserve their sharpest rates for new business.
Indicative rates only, mid-2026 โ not an offer. Some links are referral/affiliate links; we may be paid if you proceed, at no cost to you.
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Home loan repayment FAQs (2026)
How are home loan repayments calculated? By amortisation: each repayment covers the interest accrued plus a slice of principal. Early on most goes to interest; the principal portion grows over time.
How much do extra repayments really save? A lot, if made early. On a $600k loan at 6%, an extra $300/month can save ~5 years and ~$130,000 in interest.
Is an offset account better than extra repayments? Similar interest saving, more flexibility โ offset money stays accessible. Extra repayments can be harder to pull back (unless you have redraw).
Does paying fortnightly help? Yes โ half the monthly amount every fortnight equals 13 monthly payments a year, cutting years off the loan.
Should I refinance? If your rate is well above ~5.8%, likely yes โ but weigh switching costs and any fixed-rate break fees. Check the break-even first.
P&I or interest-only? P&I costs less overall and pays the loan down. Interest-only suits specific (often investor) strategies but costs more in total.
Some links are referral/affiliate links โ we may be paid if you proceed, at no cost to you. This calculator gives general information only, not financial or credit advice, and figures are estimates โ confirm rates and repayments with a licensed lender or broker.
