How much will my Mount Isa home loan repayments be

Interest rate rises have been in the news a lot over the past year. Rising interest rates increase home loan repayments and decrease your borrowing power. Read on to find out everything you need to know about Mt Isa home loan repayments, including answers to FAQs.

Factors that influence home loan repayments

Besides the interest rate charged by the lender, the other factors that influence home loan repayment amounts are:

  • the amount you borrow (the higher the amount, the higher the repayments).
  • the term of your loan (the longer your loan term, the lower the repayments).
  • how often you schedule your regular repayments (for example, monthly, fortnightly or weekly).
  • the cost of any lender fees associated with the loan.

The table below gives you a guide to the monthly repayments for different loan amounts over a standard 30-year home loan term at an interest rate of 5%.

Home loan amount

Monthly repayment













You can use the calculator here to work out the repayments for different loan amounts at different terms and interest rates. It will also help you to work out your borrowing power based on the regular repayments you can afford to make.


Why have interest rates been rising?
The Reserve Bank of Australia has increased interest rates several times since May 2022. When they do this, home loan lenders usually increase their rates as well by the same amount.

The main reason that the Reserve Bank has increased interest rates is to try and bring Australia’s rising inflation rate under control.

Will interest rates keep rising?
This depends on when the inflation rate stablises or starts to fall. When it does, rates will most likely stabilise or they could even fall. Unfortunately, no one knows how soon the inflation rate will stablise. The Reserve bank reviews interest rates every month.

Should I take out a fixed rate loan?
When you take out a home loan, you have two broad options – a fixed rate loan or a variable rate loan. A fixed rate loan allows you to fix your interest rate for up to five years. This means that your interest rate will remain the same for your fixed rate period even if market interest rates change.

The interest rate on variable home loans on the other hand changes when market rates change.

Fixed rate loans currently have higher rates than variable rate loans because most lenders expect interest rates to keep rising. If they don’t and you lock in a higher fixed rate, then your repayments will be higher than they would be for a variable rate loan.

But if rates go up past the fixed rate that you can currently get in the market during your fixed rate term, then you will be better off because your repayments won’t increase.

There is no correct ‘yes’ or ‘no’ answer to whether you should take out a fixed rate loan. It depends on your personal financial situation and whether interest rates go up or down in the future. No one knows for sure what will happen with interest rates.

Taking out a fixed rate loan can give you peace of mind that you don’t have to worry about interest rate rises for a few years.

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Jays Real Estate has been Mount Isa’s premier residential and commercial real estate agency since 1981.

If you’re thinking about selling, buying, leasing or renting any Mt Isa property, or you need your property professionally managed, then contact our team today for an obligation-free chat!

We’d be happy to provide you with advice and to answer any property questions you have.