Mortgage Top-Up vs Separate Loan Total-Cost Calculator
Compare a lower-rate mortgage top-up with a shorter standalone loan so the repayment horizon does not disappear from the decision.
Your assumptions
Comparison
Enter your figures and calculate. Results are estimates, not a quote or credit decision.
What if the cheaper rate takes 25 years to repay?
For an illustrative $40,000 purchase, 6% over 25 years costs about $258 a month and $37,316 in interest. At 10% over five years, the payment is about $850 and interest about $10,993. Repaying the 6% mortgage portion over five years reduces its interest to about $6,399. Fees are excluded.
The matched-term result separates the rate advantage from the effect of extending repayments. A separate mortgage split can make the purchase debt easier to track, but you still need to make the higher payment to clear it on schedule.
Read the renovation and mortgage top-up guide, or compare a car purchase against mortgage funding.
How to use the result
The matched-term mortgage result is important: it shows whether the lower mortgage rate is genuinely cheaper when repaid over the same period.
Security and tax treatment are outside this calculator.
Read the calculation methodology and assumptions.
If the numbers justify a closer look, send the transaction details for an initial broker review.
Review my home loan optionsGeneral information only. Calculator results are estimates and do not account for every fee, tax outcome, contract feature or lender rule. Finance approval and pricing are subject to lender assessment.