Calculator
Compare your current loan against a rate you've been quoted. Every switching cost is netted out, and an unfavourable result is shown as plainly as a favourable one.
Use your latest statement for the most accurate comparison.
Enter the rate and term you've been quoted, not an advertised headline rate.
New estimated monthly repayment
$3,218.45
Currently $3,376.04 per month.
Monthly saving
$157.59
$1,891.08 per year
Break-even period
6 months
Time to recover $800.00 in switching costs.
Total interest saved over the loan term
$46,477.00
Includes refinance costs. A longer new term can lower your monthly repayment while increasing what you pay overall.
This calculator provides a general estimate only and does not constitute financial advice or a loan quote. Actual savings depend on lender assessment, your individual circumstances, and current rates. Speak to a broker for a tailored comparison.
Get a personalised comparisonImportant
These results are estimates for general informational purposes only. They are not a loan approval, a formal quote, or an offer of credit, and they are subject to individual lender assessment, verification of your income, expenses and credit history, and current lender policy. This is not personal financial or credit advice and does not take your objectives or circumstances into account.
Interest rates and comparison rates vary by lender, loan purpose, LVR and your individual circumstances, and can change at any time. Any rate used here is the figure you entered, not a rate offer.
Break-even and interest comparisons assume both rates stay fixed for the full term and exclude offset benefits, ongoing account fees, LMI and any cashback. Actual outcomes depend on lender assessment and the rate you are ultimately offered.
A useful refinance calculation compares the balance, rate and remaining term of your existing home loan with the rate, term and costs of a proposed new loan. The repayment difference shows the immediate cash-flow effect; the break-even period shows how long it takes those savings to recover the switching costs.
The lowest advertised rate is not automatically the best result. Package fees, offset account fees, discharge and application costs, and the actual rate offered for your loan-to-value ratio all affect the outcome.
Break-even is calculated by dividing the upfront refinance costs by the monthly repayment saving. If switching costs are $1,000 and the new loan saves $175 a month, the costs are recovered in about six months.
A short break-even period can make refinancing attractive, but only if you expect to keep the loan beyond that point. If you plan to sell, make another refinance or repay the loan soon, the upfront costs may outweigh the benefit.
Resetting a 22-year loan to a fresh 30-year term can produce a large monthly saving even when the rate reduction is modest. Part of that saving comes from spreading the debt over eight extra years, not from getting a better deal.
For a fair lifetime comparison, keep the new term equal to the remaining term. If cash flow is the priority, test a longer term too, then compare the extra interest and consider making voluntary repayments when your budget allows.
A new lender normally reassesses income, living expenses, other debts, credit history and the property value. Your loan must pass its serviceability buffer even if you have made every current repayment on time.
Equity matters as well. A valuation that leaves the new loan above 80% LVR may trigger lenders mortgage insurance, which can erase the expected saving. Some lenders offer streamlined refinance policies, but eligibility and evidence requirements differ.
A borrower has $480,000 remaining over 24 years at 6.44% and is considering 5.84% over the same remaining term, with $1,000 in switching costs.
Keeping the term unchanged makes the comparison clean: estimated interest and costs are about $49,500 lower if both rates stayed unchanged.
A borrower has $600,000 remaining over 22 years at 6.30% and considers 5.85% over a new 30-year term, with $1,200 in switching costs.
The repayment falls sharply, but the eight-year term extension increases the estimated total cost. Matching the old remaining term—or paying extra—avoids mistaking a longer loan for a cheaper one.
Common costs include the current lender's discharge fee, mortgage registration fees, and any new application, valuation or settlement fee. They often total hundreds to a few thousand dollars. Fixed-rate break costs and new LMI can make the figure much higher.
There is no universal minimum. The balance, remaining term, fees and time you expect to keep the loan matter more than the rate gap alone. A modest reduction on a large balance can still recover its costs quickly.
Only if you choose a new 30-year term. You can generally request a term close to your existing remaining term. Extending the term lowers required repayments but can increase total interest substantially.
Yes, but the current lender may charge a break cost. Ask for a current payout figure before comparing offers because the break cost can change with wholesale rates and the time left on the fixed period.
A formal application creates a credit enquiry. One well-prepared application is normal; several applications in a short period may concern lenders. Comparing policy and likely eligibility before applying helps limit unnecessary enquiries.
Often, yes. A pricing request can produce a discount without switching costs or a new application. Compare that retention offer with the new lender's rate, features and fees before deciding.
Every lender reads these numbers differently. Book a free 30-minute call and we'll check your figures against real lender policy.
Check the repayment, equity and lending-policy questions that sit behind a rate comparison.
A free, no-obligation 30-minute call is usually enough to know exactly where you stand and what to do next.
