How to use the Refinance Calculator
- 1 Enter your loan balance and years left.
- 2 Enter your current rate and the new rate.
- 3 Enter switching costs, such as discharge and application fees.
- 4 Enter any cashback and read the saving.
Worked example
A $600,000 loan with 25 years left moves from 6.4% to 5.8%. Repayments fall from about $4,014 to $3,793, saving $221 a month. After $1,000 of switching costs, the switch pays for itself in five months and saves about $12,263 over five years.
Features
Repayment comparison
Monthly repayment on both rates.
Switching costs
Fees less cashback offers.
Payback period
Months until the switch pays for itself.
Long-term saving
Saving over five years and the full term.
When to use it
Rate rises
See how much a better rate saves.
Fixed rate ending
Compare the revert rate with new offers.
Cashback offers
Check whether a cashback deal is worth it.
Negotiating
Use the numbers to ask your lender for a discount.
Frequently asked questions
When should I refinance?
When you can get a meaningfully lower rate, your fixed term is ending, or you want different features, as long as the savings outweigh the costs.
What costs are involved?
Discharge fees from your old lender, application or settlement fees, government mortgage registration fees and sometimes valuation fees.
Can I refinance a fixed rate loan?
Yes, but break costs can be large if rates have fallen. Ask your lender for a quote first.
Will I need lenders mortgage insurance again?
If you owe more than 80% of the property's value, you may have to pay LMI again with the new lender.
Should I ask my current lender first?
Yes. Many lenders will cut your rate to keep you, saving the cost and effort of switching.
Are cashback offers worth it?
They can help cover costs, but the interest rate usually matters much more over time.
Does refinancing affect my credit score?
An application adds an enquiry to your credit report, but a single application has a small effect.
Should I keep my repayments the same?
If you keep paying the old amount after refinancing, you will pay off the loan faster and save more interest.
What is a comparison rate?
A rate that includes most fees and charges, making it easier to compare loans.
How long does refinancing take?
Usually two to six weeks.
Can I refinance to a shorter term?
Yes. A shorter term raises repayments but can save a lot of interest. Many people refinance to the same years left so the comparison is fair.
Results are estimates based on the official rates linked above. Confirm important figures with the issuing authority or a qualified adviser before you act on them.
Reviewed by ToolsUnlocked Team · Last updated