15 Year Mortgage: Save Big on Interest & Own Sooner

Is a 15-year mortgage right for Australian buyers?

A 15-year mortgage helps Australian homeowners drastically reduce interest costs and build equity far faster than a standard 30-year loan. While repayments are higher, the long-term savings and faster financial freedom make it appealing for buyers with stable incomes. Key advantages:

• Major interest savings: Borrow for half the time, pay far less interest.

• Faster equity growth: Principal reduces quickly, boosting your net worth sooner.

• Early financial freedom: Clear your biggest debt 15 years earlier.

• Potentially better rates: Some lenders offer sharper pricing on shorter terms.

• Built in discipline: Higher repayments force a structured, faster payoff.

A 15-year term suits borrowers confident in their income stability or those refinancing later in life. HeyNest connects you with independent brokers who provide tailored guidance on whether this accelerated option fits your financial goals.

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How to calculate 15-year mortgage repayments?

Working out 15-year mortgage repayments is straightforward. Payments are based on three factors: the principal, the interest rate and a fixed 180-month term.

• What influences the repayment amount:

  • Principal: Smaller loan = lower repayments.

  • Interest rate: Even minor rate changes significantly affect monthly costs.

  • Term (180 Months): The shorter timeframe accelerates payoff and reduces interest.

• Useful tools:

  • Online mortgage calculators: Enter loan amount, rate, and “15 years” to get instant estimates.

  • Amortisation schedules: Show how each payment splits between interest and principal, highlighting the rapid principal reduction.

For accurate, personalised figures, a broker can model your exact repayments across multiple lenders. HeyNest connects you with an expert who can run precise scenarios to help you budget with confidence.

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Best strategies to secure a low 15-year mortgage rate

Securing the lowest possible rate is essential to maximising the savings of a 15-year mortgage. Lenders reward strong financial profiles, so preparation is key. Top strategies:

• Improve your credit score: Higher scores unlock lower rates.

• Increase your deposit: An LVR under 80% often delivers sharper pricing.

• Compare widely: Banks, credit unions and non-banks vary significantly.

• Use a broker: Access exclusive deals and broader lender panels.

• Negotiate: Always ask lenders to beat competing offers.

HeyNest connects you with independent brokers who compare multiple products and negotiate directly with lenders, ensuring you secure the most competitive 15-year mortgage rate available.

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Frequently asked questions

Will the interest rate be lower for a 15-year mortgage in Australia?

Often, yes. Lenders sometimes offer slightly sharper rates on shorter terms because the loan presents a lower long-term risk to them.

Can I make extra payments on a 15-year mortgage?

In most cases yes, and it is highly recommended. However, check with your lender or broker for any specific pre-payment penalties that might apply.

Is a 15-year term available for both new purchases and refinances?

Absolutely. It is a common term option available for both first-time buyers and homeowners looking to refinance their existing loan.