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See Whether Refinancing Could Save You Money

Compare your current mortgage with a refinance option to estimate changes to your monthly repayment, interest costs and break-even time.

Mortgage Refinance Calculator

How to use this Mortgage Refinance Calculator

This calculator is simple to use. Follow these steps to see whether refinancing makes financial sense for your situation:

Enter your current loan balance (how much you still owe)
Enter your current interest rate
Enter your remaining loan term (how many years are left)
Enter the new interest rate you have been offered
Enter the new loan term you are considering
Add any refinancing costs such as exit fees or application fees
Add any cash-out amount if you plan to access equity
View your estimated new monthly repayment, break-even point, and total savings instantly

Try adjusting the new interest rate or loan term to compare different refinancing scenarios side by side.

Not sure how much you can borrow? Try our Borrowing Power Calculator.

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What Is a Mortgage Refinance Calculator?

Mortgage refinancing means replacing your existing home loan with a new one, either with your current lender or a different one. People refinance for a range of reasons — to secure a lower interest rate, access equity in their home, consolidate debt, or switch from a variable rate to a fixed rate loan.

In Australia, refinancing has become increasingly common as homeowners look for ways to reduce their repayments after multiple interest rate changes by the Reserve Bank of Australia (RBA). Even a small reduction in your interest rate can result in significant savings over a 25 or 30-year loan term.

However, refinancing is not always the right move. There are costs involved, and it is important to weigh up the savings against the fees before making a decision. This calculator helps you compare the estimated costs of keeping your current mortgage with a potential refinance option.

When Does Refinancing Your Home Loan Make Sense?

Refinancing can be a smart financial move in several situations, but it is not right for everyone. Here are the most common scenarios where refinancing may be worth considering:

You can get a significantly lower interest rate Even a 0.5% reduction in your interest rate can save thousands of dollars over the life of your loan. If rates have dropped since you took out your mortgage, or if your financial situation has improved and you now qualify for a better rate, refinancing may be worth exploring.

Your fixed rate period is ending — When a fixed-rate period ends, your loan may revert to a variable rate unless you arrange another option. Comparing rates, fees and features before the fixed period ends can help you decide whether staying or refinancing suits you better.

You want to access equity If your property has increased in value, you may have built up equity in your home. Refinancing can allow you to access some of that equity as cash, which some homeowners use for renovations, investment, or other large expenses.

Use our Home Equity Calculator to find out how much equity you have built up.

You want to consolidate debt Some homeowners refinance to roll higher-interest debts such as personal loans or credit cards into their home loan. This can reduce your overall monthly repayments, though it means paying off that debt over a longer period.

Be careful when consolidating shorter-term debts into a mortgage. A lower monthly repayment can still result in more interest overall if the debt is repaid over a much longer period, and the debt becomes secured against your home.

You want to switch loan features Refinancing can also let you move to a loan with better features, such as an offset account, redraw facility, or the ability to make extra repayments without penalty.

Refinancing Costs to Consider

Before you decide to refinance, it is important to understand the costs involved. These can vary depending on your lender and loan type.

Discharge or settlement fee
Your existing lender may charge a fee when your mortgage is discharged. Check your current loan documents or ask your lender for the amount.

Break costs
If you refinance a fixed-rate loan before the fixed period ends, your lender may charge a break cost. The amount can vary substantially depending on your loan and market conditions. Moneysmart specifically notes that fixed-rate loans may carry break fees when switching

Application or establishment fee
A new lender may charge an application, establishment or settlement fee. Some lenders may waive certain fees.

Lenders Mortgage Insurance (LMI)
Depending on your loan-to-value ratio and lender requirements, LMI may apply when refinancing. Include any expected LMI in the calculator's refinancing-cost field.

Valuation and other costs
There may also be valuation, legal, settlement or government-related costs. Check the costs that apply to your actual refinance.

This calculator allows you to enter your total refinancing costs so you can see your true break-even point — the point at which your monthly savings outweigh the upfront costs.

What is the Break-Even Point When Refinancing?

The break-even point is how long it will take for your monthly savings from refinancing to cover the upfront costs of switching loans.

For example, if refinancing costs you $2,000 in fees and saves you $200 per month, your break-even point is 10 months. After that point, the accumulated monthly repayment savings have recovered the switching costs used in the calculation.

If you plan to sell your home or pay off your loan before you reach the break-even point, refinancing may not be worth it. This calculator shows your estimated break-even point so you can make an informed decision.

Frequently asked questions

How do I know if I should refinance my home loan?

Compare the new interest rate, comparison rate, fees, loan term and features with your current loan. A lower advertised rate does not automatically mean refinancing will save money, particularly if switching costs are high or the new loan term is longer. Use the calculator to estimate the repayment difference and break-even period before deciding.

How often can I refinance my home loan in Australia?

There is no legal limit on how often you can refinance in Australia. However, refinancing too frequently can be costly due to discharge fees, application fees, and potential LMI. It is generally recommended to refinance only when there is a meaningful financial benefit.

Will refinancing affect my credit score?

Yes, applying for a new home loan involves a credit check, which can temporarily affect your credit score. Multiple applications in a short period can have a greater impact. It is best to compare your options carefully before formally applying.

How long does it take to refinance a home loan in Australia?

Refinance processing times vary between lenders and depend on factors such as your application, valuation, documentation, existing lender discharge process and settlement arrangements. Ask the new lender for its current expected timeframe.

What is a comparison rate and why does it matter?

A comparison rate combines the interest rate with most fees and charges into a single percentage, making it easier to compare the true cost of different loans. When comparing refinancing options, always look at the comparison rate rather than the advertised rate alone.

Can I refinance to get a lower repayment and also pay off my loan faster?

These two goals can work against each other. A lower repayment usually means a longer loan term, which increases total interest. To pay off your loan faster, consider keeping your repayments at the same level even after refinancing to a lower rate — or making additional repayments when possible.

Try our Extra Mortgage Payments Calculator to see how additional repayments can shorten your loan term

Does this calculator include LMI costs?

This calculator does not automatically calculate LMI. If you believe LMI may apply to your refinance, include it in the refinancing costs field to get a more accurate break-even estimate.

Is It Time to Review Your Home Loan?

It can be useful to review your home loan periodically, particularly when your fixed-rate period is ending, your financial circumstances change, or you notice more competitive loan options.

Use this calculator as a starting point to see whether the numbers stack up, then speak with a mortgage broker or your lender for a personalised assessment.

Use our Mortgage Calculator to compare repayments on different loan amounts and rates.