How much can I afford to repay?
Check what you could afford to repay on a home loan with our Affordability Calculator.
This calculation is not an offer of credit but an estimate only of what you may be able to borrow based on the information provided and does not include all applicable fees (except for monthly fees). Your borrowing power amount may be different when you complete a full application and we capture all details relevant to our lending criteria. Our lending criteria and basis upon which we assess what you can afford may change at any time without notice. Before acting on this calculation you should seek professional advice.
All interest rates referred to in the calculators are current, as indicated on westpac.com.au. The interest rates represented on this page may include promotional discounts and are subject to change. When assessing ability to service a loan, Westpac may use an interest rate that is higher than the current interest rate for the loan requested.
The output of each calculator is subject to the assumptions provided under each calculator and are subject to change. The calculator does not take into account any future refinancing options which may be available. The calculator does not take into account any product features, grants or any applicable bank fees. For details on fees and charges, please go to westpac.com.au
LVR stands for the loan-to-value ratio. LVR is the amount of your loan compared to the Bank's valuation of your property offered to secure your loan expressed as a percentage. Home loan rates for new loans are set based on the initial LVR and won't change during the life of the loan as the LVR changes.
Weekly and fortnightly repayment calculations – if your monthly repayments are $1000, fortnightly repayments are calculated by dividing $1000 by 2 ($1000 ÷ 2 = $500) and weekly repayments are calculated by dividing $1000 by 4 ($1000 ÷ 4 = $250)
The output or result of these calculators:
- is subject to the assumptions which are subject to change;
- is prepared without knowing your personal financial circumstances. Before you act on the output of the calculators, please consider if it’s right for you. If you need more information, please call 1300 786 029. We recommend that you consult your financial adviser before taking out a loan;
- does not represent either a quote or pre-qualification for a loan;
- may not be taken into account if you apply for a loan with us as we will make our own calculations. When assessing ability to service a loan, Westpac may use an interest rate that is higher than the current interest rate for the loan requested.
The interest rates used in the calculator:
- are current, as indicated on our home loan interest rate pages;
- are Westpac's standard interest rates and include any package or promotional discounts; and
- are subject to change.
Our lowest online variable home loan rate
Check out our online rate discount on our basic variable home loan or investment loan. Apply online, and select a Flexi First Option loan on Principal & Interest repayments. Eligibility, T&Cs apply.
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Frequently asked questions
Yes. You need to know how much you can comfortably afford to repay. It’s important to take into consideration other expenses without impacting your lifestyle too much.
Affordability Calculator
This calculator helps you work out how much you could afford to borrow. Calculate how much you’d be happy to pay by adding up all of your expenses like school fees, utility bills and debt repayments. You don’t need to add your current rent/accommodation costs if you’ll be living in your new home. Subtract your expenses from your income to find out what you could repay.
Tip: Consider whether your new home could cost more to live in. For example, if interest rates rise or it’s a bigger house with larger heating bills than you’re used to. Round up your current expenses figure so that you have a buffer for unexpected costs.
When you choose to make interest-only repayments on your home loan, you’re repaying the interest portion of the mortgage only. You’re not repaying the actual amount that you’ve borrowed. While with principal and interest repayments, you’re repaying both the interest and the loan balance.
There are two parts to a home loan balance:
- The principal amount: is how much you have borrowed.
- The interest: is an amount your lender charges you based on your principal. Your interest rate is a percentage of your principal. The interest is calculated daily and added to your balance every month.
That means if you’re making principal and interest repayments you’re paying off the following:
- The amount you borrowed (the principal)
- The interest
- Any fees.
By the end of the loan term (up to 30 years), you’ll have repaid the amount borrowed and the total interest owed. Your home will then be mortgage-free.
There are benefits to making interest-only repayments. However, be mindful that over the life of the loan:
- Interest-only repayments are available for a set period. Up to 5 years on an Owner-occupied loan and up to 15 years on an Investment loan. Interest-only repayments are subject to approval and eligibility criteria
- Principal and interest repayments following an interest-only period will be higher than if you’d been paying both the principal and interest from the start
- Equity will build at a slower pace during the interest-only period. This is because you’re not repaying the loan balance
- Paying interest-only for a period means you’ll pay more interest overall than if you’d been paying both the principal and interest.
Understanding interest-only repayments
Many things affect how fast you can pay down your home loan balance, and how much interest you'll pay.
Extra repayments. The simplest way to pay off your loan sooner is to make additional repayments. These repayments are on top of the repayments you’re obliged to make. Bear in mind, if you have a fixed rate with us, you can only make up to $30,000 in additional repayments. If you make more than the allowed $30,000 during the fixed rate period, break costs will apply.
Repayment type. There are two parts to your home loan balance, the principal (what you borrowed) and the interest (what the bank charges to lend you the money). It makes sense that paying off both will save you money in the long run. As part of the conditions of the Australian Government 5% Deposit Scheme, you'll need to pay principal and interest repayments (P&I). Monthly, fortnightly or weekly repayments. Read more about repayment types.
Monthly, fortnightly or weekly repayments. Repayment frequency can make a difference over time. Just by choosing fortnightly over monthly repayments is the equivalent of making one extra repayment per year.
Offset. If you link an offset account to your Rocket variable home loan, depositing your savings into this account will help to reduce the interest payable on your principal. Calculate how much you could save with an offset account.
Help when you need it
Things you should know
Conditions, credit criteria, fees and charges apply. Residential lending is not available for Non-Australian Resident borrowers.
This information is general in nature and has been prepared without taking your personal objectives, circumstances and needs into account. You should consider the appropriateness of the information to your own circumstances and, if necessary, seek appropriate professional advice.
Any tax information described is general in nature and it is not tax advice or a guide to tax laws. We recommend you seek independent, professional tax advice applicable to your personal circumstances.
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