Cost of Spending From Your Redraw Calculator
How to Use the Wishlist & Redraw Spending Calculator
Add each item on your household wishlist—such as a car upgrade, caravan, boat, kitchen renovation, or overseas holiday—and mark each item as a "Need" or a "Want" to compare its upfront price tag against its 20-year compounding mortgage interest cost.
Compare Wants vs Needs Before Tapping Home Equity
Putting a depreciating lifestyle item onto a 20–25 year home loan means you are still paying interest on a holiday or car long after the holiday is over or the car has been sold.
Worked Example: Provisioning in Cash vs Putting Lifestyle Purchases on the Mortgage
Worked Example: A $65,000 wishlist (a $45,000 SUV upgrade + $20,000 European holiday) funded from home loan redraw at 6.19% p.a. over 22 years costs over $142,000 in total principal and interest. Under the Crown Money 3-Bucket System, planned holidays and upgrades are provisioned in cash inside your 52-week plan without extending your debt-free date.
Frequently Asked Questions About Using Home Equity for Renovations or Cars
See how Giovanni & Sarah funded their family overseas holiday while cutting 12 years off their mortgage at /success-stories/giovanni-and-sarah.
Should I use home loan redraw to buy a car in Australia?
While a home loan interest rate (e.g. 6.19% p.a.) is lower than a personal car loan rate (9%–12% p.a.), stretching a car purchase over a 25-year mortgage term without increasing your monthly repayments by the equivalent 5-year amortised amount will cost you more than double the car’s price in long-term interest.