Property reality tools

Rate Difference

What does a change in interest rate actually do to this loan?

Enter the loan you have and the rate you are comparing it to. Repayment changes and interest changes are reported separately, because a lower repayment is not the same thing as paying less interest.

Repayment falls by

$215 / month

That is $50 a week, or $2,585 a year.

Interest in the first year

−$3,401

$42,918 at 6.35% against $39,517 at 5.85%.

Interest over the full term

−$72,372

Assuming both rates hold for the remaining term, which no rate ever does.

Moving from 6.35% to 5.85% lowers the repayment by $215 a month. A lower repayment is not the same as paying less interest.

Your loan

Loan balance$Remaining termyrsRepayment typeOffset balanceMoney held in an offset account reduces the interest charged.$

Current rate%Comparison rate%Current annual fee$Comparison annual fee$

›Show switching costs

Discharge, application and registration costs$Cashback offeredA cashback is a one-off payment, not an ongoing saving.$

Interest paid, side by side

Cumulative interest at each horizon. Principal repaid is deliberately excluded — repaying principal is not a cost.

Horizon	At 6.35%	At 5.85%	Difference
1 year	$42,918	$39,517	−$3,401
3 years	$126,933	$116,729	−$10,204
5 years	$208,247	$191,263	−$16,984
28 years	$776,271	$703,899	−$72,372

If rates move from here

Each step applied to your current rate, not the comparison rate.

+0.10% on your current rate$524 a year	$44
+0.25% on your current rate$1,314 a year	$110
+0.50% on your current rate$2,643 a year	$220
+1.00% on your current rate$5,341 a year	$445

If you keep your repayment the same

Holding the higher repayment after a rate fall pays the loan down faster.

Repayment held at

$4,334 / month

Loan paid off

38 months earlier

Interest not paid

$93,798

The same result through an offset account

An alternative way to reach the same first-year interest, if your current loan has an offset.

Holding roughly $52,022 in an offset account against your current rate would produce about the same first-year interest as moving to 5.85%.

This is a general information tool. It is an estimate based on the figures you enter and published rules, and it is not financial, credit, tax or legal advice. It does not assess your borrowing capacity, does not consider your personal circumstances and is not an offer of finance. Rates, fees and switching costs vary by lender and product, and eligibility is decided by the lender alone. Verify every figure with your lender, conveyancer and a licensed adviser before making a decision.