MoneySmart’s property tools can help you work out whether a home purchase fits your budget, compare mortgage repayments and understand the costs of owning an investment property. Used together, its calculators and guides provide a useful financial starting point before you speak with a lender, inspect homes or refinance.
MoneySmart is the Australian Government financial education website operated by the Australian Securities and Investments Commission, or ASIC. Its tools and guidance are free. It does not arrange home loans or provide personal financial advice. About MoneySmart.
The most useful approach is to match each resource to a decision: how much to save, what repayments you can manage, which loan features matter and what could happen if your circumstances change. This guide explains where to start and how to turn the results into a practical property research plan.
Which MoneySmart property tools should you use first
| Your next decision | MoneySmart resource | What it helps you explore |
|---|---|---|
| Set a realistic household budget | Budget planner | Income, spending and room for ownership costs |
| Plan a deposit | Savings goals calculator | Savings targets and timelines |
| Test a proposed mortgage | Mortgage calculator | Repayments, loan size and repayment strategies |
| Compare refinancing options | Mortgage switching calculator | Switching costs and potential savings |
| Assess an interest only loan | Interest-only mortgage calculator | Repayments during and after the initial period |
| Understand investment risks | Buying an investment property guide | Income, expenses and ownership risks |
| Explore home equity in retirement | Reverse mortgage calculator | Compounding debt and remaining equity |
Direct links and practical uses for each resource appear below. You can also browse Property Research Hub’s financial calculators and tools to compare resources from other providers.
1. Start with the budget planner
A comfortable purchase budget begins with your household finances. The MoneySmart budget planner helps you organise income and spending, including expenses paid at different frequencies. An Excel version is available if you want a budget file you can save and revisit.
Build two versions: your current budget and a possible homeowner budget. In the second, replace rent with estimated mortgage repayments and add council rates, insurance, maintenance and any strata levies. Keep groceries, transport, childcare and other existing commitments realistic.
Check annual and quarterly bills carefully. A $1,200 annual expense is $100 a month; entering it as a monthly expense would distort your result. Equally, leaving it out would make your budget look more comfortable than it is.
The useful output is the amount left after all expenses, including money you intend to keep for emergencies and other goals.
2. Build a deposit plan with the savings goals calculator
The savings goals calculator lets you explore how your starting balance, regular contributions and assumed interest rate affect your savings timeline. Try several contribution amounts to see which target fits your budget.
For an illustrative starting point, suppose you already have $35,000 and want $65,000. Saving $1,000 a month would close that $30,000 gap in 30 months before interest. The calculator helps you explore how interest and different savings amounts change the estimate.
Keep the purchase deposit, transaction costs and emergency savings as separate targets. Reaching a deposit figure is less useful if paying legal fees and moving costs leaves your household without a buffer.
Pair the calculator with MoneySmart’s house deposit guide. It explains loan-to-value ratios and lenders mortgage insurance, which protects the lender rather than the borrower. A 20% deposit is not compulsory for every purchase: lender requirements and eligible government schemes can allow smaller deposits.
First home buyers should check whether they qualify for the Australian Government 5% Deposit Scheme before settling on a savings target. Since 1 October 2025 the scheme has had no income caps and no annual limit on places, and property price caps were increased, though other eligibility, property and lender requirements still apply. Official 5% Deposit Scheme information. A smaller deposit reduces the time needed to buy but leaves less equity if values fall, so model both the timeline and the repayment.
3. Test repayments with the mortgage calculator
Use the MoneySmart mortgage calculator to compare loan amounts, interest rates and repayment periods. It also includes options for exploring how much you might borrow based on repayments and how to repay a loan sooner.
Treat these as mathematical estimates. The calculator does not assess your complete financial position or guarantee that a lender will approve the amount shown. Its assumptions also exclude upfront costs such as loan establishment fees, and it is built for principal and interest loans (use the interest-only calculator separately if that applies).
The default interest rate reflects the most recent RBA housing lending rates data, not a rate you have been quoted. Enter your own quoted rate rather than relying on the default.
A practical way to use it is to save three results: the repayment at your quoted rate, the repayment at a higher rate and the repayment for a smaller loan. Bring those figures back into your household budget.
For example, if the higher-rate scenario would leave no room for car repairs or unpaid leave, consider how a lower purchase price or larger deposit would change the position. The goal is a manageable commitment over time, including periods when expenses rise.
4. Compare the full cost of switching home loans
The mortgage switching calculator helps existing borrowers estimate potential savings from refinancing and the time needed to recover switching costs.
Gather your outstanding balance, remaining loan term, current rate, proposed rate and relevant fees. Include discharge and application costs, and ask about any fixed-rate break costs before assuming a switch will save money.
As a simple illustration, $2,400 in switching costs divided by an estimated $150 monthly saving gives a 16-month recovery period. This rough calculation ignores changing balances, interest rates and the timing of charges; use it as an initial check rather than a complete loan comparison.
Compare loans over the same remaining term. Extending a 22-year balance back to 30 years may lower the monthly payment while increasing the time you pay interest. Also consider whether you will lose an offset account or other features you use.
5. Check what happens after an interest only period
An initially lower repayment can hide a much larger future commitment. MoneySmart’s interest-only mortgage calculator compares repayments before and after the interest-only period, alongside the cost of a comparable principal and interest loan.
During an interest-only period, scheduled repayments do not reduce the principal. When that period ends, the outstanding balance generally needs to be repaid over the remaining loan term. Repayments can therefore rise even if the interest rate stays unchanged.
Model the later repayment before committing. Investors should consider how they would meet that payment during a vacancy or an unexpected repair. Run a higher interest rate scenario as well, and check the calculator’s assumptions and the lender’s actual terms.
6. Use the buying a house guide as a process checklist
MoneySmart’s buying a house guide brings together the financial and practical stages of purchasing a home, including saving, affordability, loan comparisons and property selection.
Use it to identify the questions that need answers before you commit. Have you allowed for purchase costs? Has your lender assessed your current circumstances? What inspections and contract conditions do you need to discuss with your solicitor or conveyancer?
Keep finance preparation and property investigation moving together. A lender’s willingness to lend does not establish whether a particular home suits your needs, has expensive defects or is exposed to flooding.
For the location side of the decision, follow our guide to researching a suburb before buying in Australia.
7. Understand loan features before comparing offers
The choosing a home loan guide explains repayment types, loan terms and the features to consider when comparing mortgages.
Make a shortlist of features you expect to use. Someone with substantial savings may value an offset account, while another borrower may prioritise a straightforward loan with lower ongoing fees. Ask for written comparisons using your intended loan amount and term.
Read the assumptions behind an advertised comparison rate. It includes interest and certain fees for a standard example, but does not capture every cost or necessarily reflect your loan size and circumstances.
Consider how fixed, variable or split arrangements would affect repayment certainty, flexibility and exit costs. There is no single loan structure that suits every household.
8. Work out whether an offset account is worthwhile
MoneySmart’s mortgage offset account guide explains how money in a linked account can reduce the loan balance on which interest is calculated.
With a $500,000 loan and $25,000 in a 100% offset account, interest would be calculated on $475,000, subject to the product’s terms. The loan itself still exists, and the money in the offset remains separate from the loan principal.
Compare the potential interest saving with any additional package fee or higher loan rate. Your likely average balance matters more than a balance you might hold for only a few days. Also ask how offset and redraw arrangements differ, particularly if you may later rent out the property; an accountant can explain any tax consequences for your circumstances.
9. Prepare better questions for a mortgage broker
The using a mortgage broker guide explains the broker’s role, licensing checks, remuneration and questions to ask. Mortgage brokers are subject to a best interests duty when providing credit assistance to consumers.
Take your budget and calculator results to the meeting. Ask which lenders the broker can access, how they are paid and why the recommended loan suits your goals. Request an explanation of the total costs and the alternatives considered.
A useful question is: what circumstances would make this recommendation less suitable? That might include selling earlier than expected, taking parental leave, changing employment or needing access to savings. These conversations help you understand the recommendation and its trade-offs.
10. Review investment property income and risks
MoneySmart’s buying an investment property guide outlines ownership costs, rental income, borrowing and the risks of vacancy or falling values. It is a useful starting point for building a cash flow estimate.
Compare expected rent with management fees, rates, insurance, maintenance, strata costs where relevant and loan repayments. Include a vacancy allowance and irregular expenses. A quoted gross rental yield leaves many of these costs out.
Have an accountant check tax assumptions before relying on them. The first bill covering the 2026 housing tax reforms passed Parliament on 25 June 2026 and is now law. From 1 July 2027, net rental losses on established residential dwellings acquired after 7.30 pm AEST on 12 May 2026 can no longer be offset against other income, and the 50% CGT discount for individuals, trusts and partnerships is replaced with cost base indexation and a 30% minimum tax rate on gains accruing from that date. Properties held at the announcement time are grandfathered for negative gearing, and new residential dwellings are treated differently. A further tranche of legislation was still to come at the time of writing. Acquisition dates, ownership structures and transitional provisions matter, so general property guides should be read alongside current tax guidance. ATO guidance on the reforms.
For current market context on rents, values and investor conditions, see our Australian property market outlook.
11. Include insurance in your affordability research
The choosing home insurance guide explains building cover, contents insurance and rebuilding costs. It also directs readers to external insurance calculators.
Get a property-specific quote early. Check exclusions, excesses, flood cover and the amount needed to rebuild. The price paid for a home includes land and is not the same as its rebuilding cost.
For a strata property, establish what the owners corporation or body corporate policy covers and what remains your responsibility. Compare premiums alongside the actual cover: a lower price is less helpful if the policy excludes a risk that matters to the property.
12. Know where to find retirement and repayment support
For older homeowners considering equity release, the reverse mortgage calculator models how debt and remaining home equity could change over time. Compounding interest can increase the balance substantially, so test different assumptions and discuss the implications for future housing, aged care and your estate with appropriate advisers. Reverse mortgages taken out since 18 September 2012 have negative equity protection, meaning you cannot owe the lender more than the value of your home.
For borrowers under pressure, MoneySmart’s problems paying your mortgage guide explains how to approach a lender about hardship and find further support. Contact the lender early if repayments are becoming difficult. A calculator can clarify the shortfall, but resolving it may require a conversation about your loan and circumstances.
Turn the tools into a practical property research plan
Use the outputs to produce a short decision record:
- Set your budget. Record normal expenses, proposed ownership costs and the money left over.
- Set your savings target. Separate the deposit, purchase costs and cash you intend to retain.
- Compare loan scenarios. Save your assumptions for the loan amount, term, rate and fees.
- Investigate the property. Check sold prices, local conditions, building quality and relevant hazards.
- Resolve the gaps. Take finance questions to a lender or broker, contract questions to a solicitor or conveyancer, and tax questions to an accountant.
Date the record and update it when the property price, quoted rate or your income changes. This makes the research reusable when you compare a second property.
Common questions about MoneySmart property resources
Are MoneySmart calculators free?
Yes. MoneySmart provides free financial education tools and guides. Some resources linked from other websites may have different access conditions, so check the provider before using them.
Will the mortgage calculator tell me what a bank will lend?
It provides estimates based on the figures entered. A bank makes its own assessment of your income, expenses, debts, credit history, security property and lending criteria. A calculator result is not loan approval.
Does MoneySmart calculate every cost of buying a property?
No single calculator covers the complete transaction. Separately confirm transfer duty, concessions, legal fees, inspections, lender charges, insurance and moving costs. Use the relevant state or territory revenue authority for current duty rules.
Can MoneySmart tell me whether a particular property is a good buy?
Its resources help with financial preparation and risk awareness. You still need property-specific research, inspections and suitable professional advice. Start with Property Research Hub’s property data and pricing tools to investigate comparable sales and local market information.
Which MoneySmart calculator should a first home buyer use first?
Start with the budget planner, then the savings goals calculator to set a deposit target, then the mortgage calculator to test the repayment that target implies. Working in that order means your loan size is determined by what your household can sustain, rather than the other way around.
This article provides general information and education, not personal financial, credit, investment, tax or legal advice. Calculator results depend on their inputs and assumptions. Consider your circumstances and obtain appropriate professional advice before making a property decision.