How much could I save by refinancing?
Compare your current loan to a new rate, account for switching costs, and see the break-even point.
Compare two scenarios
Updates as you type. Numbers stay in your browser.
Use a comparison rate, not headline rate.
Typical: discharge fee ($150–$400) + WA mortgage registration ($210) + valuation ($0–$300). Many lenders waive or rebate these.
We’ll compare 50+ lenders to find a competitive rate that suits your situation. Many lenders offer cashback that may help cover switching costs.
The "is it worth it" question
The single most common refinance mistake is dismissing a small rate difference as not worth the hassle. A 0.25% drop on a $500,000 loan over 25 years saves around $30,000 in lifetime interest. A 0.50% drop saves over $58,000. The maths heavily rewards even modest improvements.
The other common mistake is the opposite: getting excited about a low headline rate that disappears after a 1- or 2-year intro period, leaving you on the lender's standard variable rate which may be higher than what you started with. Always check the comparison rate and the rate after any introductory period.
The break-even calculation
The break-even line above tells you how many months of monthly savings it takes to recover your switching costs. Under 24 months is generally a clear win. 24–36 months requires you to be confident you'll keep the loan that long. Over 36 months, the case is weaker — though if the rate gap is large enough, the lifetime saving may still justify the switch.
What this calculator doesn't show
- Cashback offers — many lenders pay $2,000–$4,000 cashback on refinancing, which can offset all switching costs and then some
- Package fees — some loans have a $395/year package fee bundled with offset and credit card; others have none
- LMI implications — if your LVR is now under 80%, you may unlock lender options that weren't available when you took the original loan
- Loan structure changes — splitting fixed/variable, adding offset, switching from interest-only — these can affect the real benefit
A broker can identify the lenders most likely to approve you with the lowest comparison rate and a cashback that covers your switching costs. If the calculator above is showing a meaningful saving, the next step is a 15-minute conversation.
Refinancing, explained.
How much do I need to save to make refinancing worthwhile?
Look at the break-even shown above. If switching costs are recovered within 18–24 months and you plan to keep the loan beyond that, refinancing usually makes sense. Even small rate drops compound to large lifetime savings.
What costs are involved?
Typically: discharge fee from your old lender ($150–$400), WA mortgage registration ($210), valuation if not waived, and any settlement/legal fees from the new lender (often $0). Many lenders offer cashback that covers all of this and more.
Will refinancing reset my 30-year loan term?
Only if you ask for a new 30-year term. You can match the remaining term of your current loan to keep the same end date and avoid extending the loan.
Will it hurt my credit score?
Each application creates a credit enquiry, which has a minor short-term impact. Multiple enquiries close together can be more noticeable. A broker submits to one carefully chosen lender first rather than shotgunning applications, which protects your credit file.
What if I'm on a fixed rate?
Breaking a fixed-rate loan can attract a break cost — sometimes minimal, sometimes substantial depending on how rates have moved. Always get a written quote of the break cost from your current lender before deciding.