What is the average mortgage repayment in Australia in 2026?

The average Australian home loan is $736,257 with an average interest rate of 5.50% p.a., resulting in a monthly repayment of approximately $4,189 over 30 years. Your repayment will vary based on your loan amount, interest rate, and loan term.

What is the current RBA cash rate in Australia?

The RBA cash rate is {{rbaCashRate}}% as of May 2026, following the 25bps hike on 5 May 2026. The cash rate influences variable home loan interest rates. The average owner-occupier rate is currently around 6.39% p.a.

What is the difference between monthly and fortnightly repayments?

Fortnightly repayments (half your monthly amount, paid every two weeks) result in 26 half-payments per year — equivalent to 13 monthly payments. This extra payment each year reduces your balance faster and can save tens of thousands in interest over a 30-year loan.

What is LMI and when do I need to pay it?

Lender's Mortgage Insurance (LMI) protects the lender if you default. It is required when your deposit is less than 20% of the property value (LVR above 80%). LMI can add thousands to your upfront costs but allows you to buy with a smaller deposit.

Can I make extra repayments on my Australian home loan?

Most variable rate home loans allow unlimited extra repayments without penalty. Fixed rate loans typically cap extra repayments at $10,000–$20,000 per year. Making extra repayments reduces your principal faster, cutting years off your loan.

What does an amortisation schedule show?

An amortisation schedule shows how each repayment is split between interest and principal over the life of your loan. In the early years, most of each repayment is interest. By the final years, nearly all of it reduces your principal.

How long does it take to pay off a $650,000 mortgage?

A $650,000 mortgage at 5.50% p.a. over a standard 30-year term will be fully paid off in 30 years. Making fortnightly instead of monthly repayments can cut approximately 3–4 years off the term. Adding extra repayments reduces this further.

Should I put my savings in an offset account or pay down the loan directly?

For most variable-rate borrowers, the offset wins. The interest savings are mathematically identical — $1 in offset reduces interest the same as $1 paid off principal — but the offset keeps your money fully accessible if you lose your job, have a baby, or face an emergency. Money paid directly onto the loan typically requires a redraw request, which can be slow or restricted. Plus, the implicit return on offset money is tax-free (you're avoiding interest, not earning income), so it usually beats a high-interest savings account on an after-tax basis.

How much can an offset account save on a $650,000 mortgage at 6.14%?

A $50,000 starting offset balance on a $650,000 loan at 6.14% over 30 years saves roughly $150,000 in interest and shaves about 4 years off the term. Adding $1,500/month into the offset alongside that pushes savings to around $250,000 and 7+ years off the loan. Calcy's offset modeller runs the same month-by-month simulation lenders use, so the figure matches what a Commonwealth Bank, Westpac, or Bankwest broker would quote.

Does an offset account change my monthly repayment?

No. Your contractual monthly P&I repayment stays the same. The offset reduces the interest portion of each repayment so a larger share goes to principal — that is why the loan is paid off sooner. The 'effective rate' figure shown next to the offset result is your headline rate weighted by the average offset position over the life of the loan.

Is an offset account the same as a redraw facility?

No. Redraw lets you pull back extra repayments you've already made, but access can be slow, capped, or restricted by the lender — and the rules can change. An offset account is a separate everyday transaction account you control like any bank account. Dollar-for-dollar the interest saving is identical, but offset is more flexible, and it's clearly preferable if the property might later become an investment, because redrawn funds can complicate the tax-deductibility of the loan interest.

Mortgage Repayment Calculator

Free Australian mortgage repayment calculator. See fortnightly and monthly repayments, total interest, and full amortisation schedule. Updated for 2026.