Mortgage Refinancing Calculator
See exactly how much you could save by switching home loans — monthly repayment reduction, total interest saved, and how long until refinancing costs pay for themselves.
Current Loan
New Refinanced Loan
Monthly repayment saving
$169
/ month$2,031/year · $50,778 over remaining term (before refinancing costs)
Break-even point
1 year
Refinancing costs of $2,000 recovered in 1 year
Costs
$2,000
Total interest — current
$461,530
over 25 years
Total interest — new
$410,752
over 25 years
Net interest saved
$48,778
after refinancing costs
Annual saving
$2,031
in monthly repayments
Refinancing looks worthwhile
You'll break even in just 1 year and save $48,778 in total interest. Strong candidate for refinancing.
Verdict checklist
Cumulative Interest Paid Over Time
Shows total interest paid (including refinancing costs for the new loan). The gap between lines is your net saving at each point.
Year-by-Year Cumulative Savings
| Year | Current interest | New interest + costs | Net saving |
|---|---|---|---|
| 1Break-even | $29,031 | $28,288 | +$744 |
| 2 | $57,565 | $54,082 | +$3,483 |
| 3 | $85,568 | $79,354 | +$6,213 |
| 4 | $113,004 | $104,072 | +$8,931 |
| 5 | $139,836 | $128,203 | +$11,633 |
| 6 | $166,023 | $151,710 | +$14,313 |
| 7 | $191,521 | $174,555 | +$16,966 |
| 8 | $216,286 | $196,700 | +$19,586 |
| 9 | $240,267 | $218,102 | +$22,166 |
| 10 | $263,413 | $238,715 | +$24,698 |
Tips for Refinancing Smart
Check your LVR first
If your LVR is above 80%, you may need to pay LMI on the new loan. Check your current balance vs property value before applying.
Comparison rate vs headline rate
Always compare the comparison rate (which includes fees). A low headline rate with high fees may cost more than a slightly higher rate with no fees.
Cashback offers
Many lenders offer cashback of $2,000–$5,000 for refinancing. Factor this in — it can eliminate break-even time entirely. Always read the conditions.
Negotiate with your current lender
Before paying refinancing fees, call your lender and ask for a rate match. Many will reduce your rate by 0.2–0.5% to retain you. Zero cost to try.
Reset loan term = more interest
Refinancing to a 30-year term on a 20-year remaining loan lowers repayments but means 10 extra years of interest. Consider keeping the same remaining term.
All calculations are estimates only. Figures assume constant interest rates and standard principal-and-interest repayments. Refinancing costs are indicative — get exact figures from your lender and solicitor. This is not financial advice. Terms of Use.
How does mortgage refinancing work in Australia?
Refinancing means replacing your existing home loan with a new one — usually from a different lender offering a lower interest rate. You pay out your current loan (which may attract a discharge fee) and take out a new loan at the better rate. The process typically takes 4–8 weeks and involves a new loan application, credit check, and property valuation. The key question is whether the interest savings over your remaining loan term outweigh the upfront switching costs.
What is the break-even point for refinancing?
The break-even point is how long it takes for your cumulative monthly savings to exceed the upfront refinancing costs. If it costs $2,000 to switch and you save $200/month, you break even in 10 months. If you plan to stay in the property for longer than the break-even period, refinancing makes financial sense. A break-even under 24 months is generally considered a strong candidate; over 48 months you should think carefully about your plans.
What are the typical costs of refinancing in Australia?
Common refinancing costs include a discharge fee from your current lender (~$150–$400), new loan application fee (~$0–$600), settlement fee (~$100–$300), and mortgage registration fees (~$120 depending on state). Legal or conveyancing fees add another $500–$1,000. Total costs typically run $1,500–$3,000. Some lenders offer cashback deals of $2,000–$5,000 that can offset these entirely.
Should I refinance my home loan in 2025?
With the RBA cash rate having moved significantly from its pandemic lows, many Australians are on rates well above what new customers are being offered. If your loan is more than 2–3 years old and you haven't refinanced, you may be paying a "loyalty tax". The first step is to call your current lender and ask for a better rate — if they won't budge by at least 0.25%, use this calculator to model the cost of switching to a better deal.