Compare two home loans side by side over the same term — repayments, total interest and fees — and see why the lower rate is not always the cheaper loan.
What this tool estimates
Two loans rarely differ on rate alone. The calculator above puts them on the same footing — same loan amount, same term — and works out what each one actually costs you. Enter the rate and any ongoing fees for Loan A and Loan B, and it returns the monthly repayment for each, the total interest over the life of the loan, and the total cost once fees are added in. The result tells you which loan is cheaper over the full term, and by how much.
What drives the difference
A headline rate is only part of the story. A loan advertised fifteen basis points lower can end up more expensive once a yearly package fee is counted, and the gap compounds over thirty years. The calculator uses standard amortising principal-and-interest maths, so the repayment and total interest are calculated the way a lender would. What it deliberately leaves out is just as important: offset and redraw benefits, upfront and discharge costs, and the fact that real rates move. Two loans with the same rate today can sit very differently against your circumstances once those features are weighed — which is a question of policy fit, not just price.
Use it as a starting point
Treat the cheaper-loan figure as a prompt, not a decision. The right loan is the one whose structure and policy suit how you actually hold and use the debt — and that is where the comparison gets interesting. Book a strategy session and we will compare real products against your real numbers.
General information only — not personal financial product or credit advice. The estimate is indicative and depends on each lender's policy, current rates and your full circumstances. AeFin is an Australian Credit Representative (CR 464548) of Finsure (ACL 384704).