How much does a 0.5% difference in interest rate matter on a home loan?

On a $600,000 home loan over 30 years, a 0.5% difference in interest rate means approximately $180/month in repayments and over $65,000 in total interest paid. On a $1,000,000 loan, the same 0.5% difference costs over $110,000 in total. The comparison calculator shows the exact dollar difference between any two scenarios.

Should I choose a shorter or longer loan term?

A shorter term means higher monthly repayments but significantly lower total interest. On $600,000 at 5.5%, a 25-year loan costs approximately $100,000 less in total interest than a 30-year loan — but repayments are about $350/month higher. The comparison calculator helps you weigh up the trade-off for your situation.

What is a comparison rate and how is it different from the advertised rate?

The comparison rate includes fees and charges in addition to the interest rate, expressed as a single percentage. A loan advertised at 5.50% might have a comparison rate of 5.75% once establishment fees, ongoing fees, and other charges are included. Always compare using the comparison rate to accurately reflect the true cost of a loan.

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How much does a 0.5% difference in rate cost over a 30-year loan?

On a $600,000 loan, a 0.5% rate difference costs approximately $180/month and over $65,000 in total interest over 30 years. On a $1,000,000 loan the difference exceeds $110,000 in total. Small rate differences that seem minor month-to-month become very large over a 25–30 year loan term.

•$500,000 loan: 0.5% rate difference = ~$55,000 total over 30 years
•$800,000 loan: 0.5% rate difference = ~$88,000 total over 30 years
•Comparing the total cost (not just monthly repayment) is the right way to evaluate loan offers

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