Mortgage Calculator Australia — Calculate Your Monthly Repayment
Free Australian mortgage calculator. Calculate monthly repayments for variable and fixed rate home loans with comparison rates and LMI estimates.
Australian mortgages differ from other countries in several ways: most are variable rate (unlike US 30-year fixed) the standard term is 25-30 years and Lenders Mortgage Insurance (LMI) is required for deposits below 20%. Average mortgage rates in 2026 sit around 5.5-6.5% for variable and 5.0-6.0% for fixed. The First Home Guarantee allows eligible buyers to purchase with just 5% deposit without paying LMI.
How much is the repayment on a $600000 mortgage in Australia?
On a $600000 home loan at 6% variable rate for 30 years: monthly repayment is approximately $3597. For 25 years: $3865 per month. Total interest over 30 years is $695000 compared to $559000 over 25 years. The 25-year option saves $136000 in interest for just $268 more per month making it the better choice if affordable.
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Mortgage Calculator
How This Calculator Works
This calculator uses the standard reducing balance method to compute your monthly payments. The formula takes your loan principal, annual interest rate, and tenure to calculate the exact Equated Monthly Installment (EMI) or payment amount. Each monthly payment consists of two components — principal repayment and interest charges. In the early months, a larger portion goes toward interest, but as your outstanding balance decreases, more of each payment reduces the principal. This is why making extra prepayments in the early years of your loan saves significantly more interest than prepaying later.
Tips to Get the Best Loan Deal
Always compare the Annual Percentage Rate (APR) rather than just the advertised interest rate, as APR includes processing fees, insurance charges, and other costs. Negotiate your processing fee — most banks will reduce or waive it if you ask. Choose the shortest tenure your budget allows since longer tenures dramatically increase total interest paid. Check prepayment terms before signing — RBI mandates zero prepayment penalty on floating rate home loans in India. Finally, maintain a credit score above 750 to qualify for the best rates from any lender.
Key Information
| Parameter | Details |
|---|---|
| Average Variable Rate | 5.5% - 6.5% (2026) |
| Average Fixed Rate (2yr) | 5.0% - 6.0% (2026) |
| LMI Threshold | Below 20% deposit |
| Standard Loan Term | 25 - 30 years |
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Use Calculator NowFrequently Asked Questions
How much is the repayment on a $600000 mortgage in Australia?
On a $600000 home loan at 6% variable rate for 30 years: monthly repayment is approximately $3597. For 25 years: $3865 per month. Total interest over 30 years is $695000 compared to $559000 over 25 years. The 25-year option saves $136000 in interest for just $268 more per month making it the better choice if affordable.
How much deposit do I need in Australia?
Standard: 20% ($120000 on a $600000 home) avoids LMI. Minimum: 5% ($30000) with LMI costing $15000-$25000 added to your loan. The First Home Guarantee scheme lets eligible buyers purchase with 5% deposit and no LMI (government guarantees the difference). Check eligibility on the NHFIC website. First Home Owner Grant adds $10000-$30000 depending on state.
Fixed vs variable mortgage which is better in Australia?
Variable rates are historically lower over the long term and offer features like offset accounts extra repayments and redraw facilities. Fixed rates provide payment certainty for 1-5 years protecting against rate rises. Many Australians split their loan (eg 50% fixed 50% variable) to get both certainty and flexibility. Consider fixing if rates are expected to rise and choosing variable if rates are expected to fall.
How is EMI calculated?
EMI is calculated using the formula: EMI = P × r × (1+r)^n / ((1+r)^n - 1), where P is the principal loan amount, r is the monthly interest rate (annual rate divided by 1200), and n is the tenure in months. This gives you the fixed monthly payment that covers both principal repayment and interest.
Should I choose a longer or shorter loan tenure?
A shorter tenure means higher EMI but significantly less total interest paid. For example, on a Rs 50 lakh loan at 8.5%, choosing 15 years over 20 years saves approximately Rs 12 lakh in interest but increases your EMI by about Rs 14,000. Choose the shortest tenure your budget allows.
Can I prepay my loan to reduce interest?
Yes, making prepayments is one of the smartest financial moves. RBI mandates zero prepayment penalty on floating rate home loans. Even small annual prepayments of Rs 1-2 lakh can save Rs 10-20 lakh in total interest and reduce your tenure by years.
What CIBIL score do I need for a loan?
Most banks require a minimum CIBIL score of 700 for loan approval. A score above 750 helps secure better interest rates. Scores between 650-700 may still get approved but at 0.5-1% higher rates. Below 650, approval becomes difficult with mainstream banks.
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Last updated: March 2026