Refinance Calculator
Compare your current home loan to a new loan. See monthly savings, break-even period and total interest saved including refinance costs.
Disclaimer
This calculator provides estimates for general information purposes only. Results should not be relied upon as professional financial, tax, or legal advice. Tax rates and thresholds are based on publicly available ATO data and may change. Always consult a qualified tax agent or financial adviser for advice specific to your circumstances.
Frequently Asked Questions
When is refinancing worth it?
What are the costs of refinancing in Australia?
Will refinancing affect my credit score?
Can I refinance with bad credit or low equity?
What is Refinance?
Refinancing means replacing your existing home loan with a new one — usually with a different lender — to get a lower interest rate, better features, or to access equity. The right refinance can save you tens of thousands over the life of your loan.
How this calculator works
This calculator compares your current loan repayments to the proposed new loan, accounting for refinance costs (discharge fee, application fee, valuation, legal/conveyancing fees). It shows monthly savings, total upfront costs, and the break-even period (how long until your savings exceed the costs). It also calculates lifetime interest saved over the new loan term.
When Is Refinancing Worth It?
A common rule of thumb: refinancing is worthwhile if you can save 0.5%+ on your interest rate AND plan to keep the loan longer than the break-even period. For a $500K loan, dropping from 6.5% to 5.8% saves ~$220/month. With ~$1,500 in refinance costs, you break even in ~7 months — clearly worthwhile if you're staying long-term.
Hidden Costs to Watch
Beyond standard fees, watch for: fixed-rate break costs (can be $5K-$30K+ if you break a fixed term early), LMI re-charge if your equity is below 20%, government mortgage discharge and registration fees (~$190 per state), and potential clawback of cashback offers if you refinance within 2-3 years. Always get a written discharge cost from your current lender before deciding.
Don't Just Chase the Rate
Lower rates often come with fewer features. If you currently have an offset account, redraw, or extra repayment flexibility, make sure the new loan offers the same. Some basic loans have lower rates but no offset — for borrowers with savings buffers, this can be a worse deal overall.
Don't Extend Your Loan Term
Refinancing often resets the loan to a fresh 30-year term. Even at a lower rate, paying for 5 extra years can mean tens of thousands more in total interest. Where possible, refinance to a term that matches your remaining years on the old loan.
Worked Examples
Refinance $450,000 from 6.5% (25 yrs) to 5.8% (25 yrs)
Monthly saving: ~$190. Break-even: ~8 months. Lifetime interest saved: ~$56,000
- Current monthly payment: ~$3,037
- New monthly payment: ~$2,847
- Monthly saving: $190
- Refinance costs: $1,450 (discharge $350 + application $600 + valuation $300 + legal $200)
- Break-even: $1,450 / $190 = 7.6 months
- Lifetime interest saved (after costs): ~$56,000
Updated for the 2025-26 financial year (1 July 2025 to 30 June 2026).
Official Sources
All calculations are performed in your browser — your data never leaves your device. Results are for general guidance only and should not be considered professional financial advice.
Built and maintained by Konstantin Iakovlev. Data sourced from the ATO and official Australian government sources.