If you haven’t reviewed your home loan in the last two years, there is a reasonable chance you’re paying a rate that’s no longer competitive. Our free refinance savings calculator compares your current loan to a lower rate and shows your monthly saving, annual saving, and total interest saved over the remaining loan term, along with the break-even point after accounting for switching costs including discharge fees, application fees, break costs, and any cashback incentive.
Enter your current loan details, the rate you are considering, and your estimated switching costs to get a complete picture. Not sure what rate you could qualify for?
Book a free rate review and a Stanford Financial broker will compare your loan against 50+ lenders at no cost.
Compare your current rate to a new rate and see your monthly saving, annual saving, total interest saved — and the break-even point after switching costs.
Think you might be overpaying? Let's find out. Our brokers compare your current rate against 50+ lenders at no cost. If we can save you money, we'll show you the exact numbers before you commit to anything.
Book a Free Rate ReviewThe saving from refinancing comes entirely from the difference in interest rate. A lower rate means less interest is charged each day on your outstanding balance, which reduces both your monthly repayment and the total interest paid over the remaining loan term. Small rate differences compound significantly over long terms on large balances.
| Balance | Current Rate | New Rate | Monthly Saving | Break-even |
| $500,000 | 7.00% | 6.00% | ~$311/mo | ~2.7 months |
| $500,000 | 7.00% | 6.50% | ~$157/mo | ~5.4 months |
| $600,000 | 7.20% | 6.20% | ~$385/mo | ~2.2 months |
| $600,000 | 7.00% | 6.50% | ~$188/mo | ~4.5 months |
| $700,000 | 7.50% | 6.50% | ~$432/mo | ~1.9 months |
| $800,000 | 7.00% | 6.20% | ~$387/mo | ~2.2 months |
Indicative only. Based on 25-year remaining term, $850 total switching costs. Monthly saving is the difference between minimum repayments at each rate. Break-even assumes switching costs divided by monthly saving. Use the calculator above for your exact figures.
On a $600,000 loan, moving from 7.00% to 6.20% saves approximately $387 per month. Over a 25-year remaining term, the total interest saved is approximately $116,000. After $850 in switching costs, the break-even point is around 2.2 months after which every month is pure saving.
Refinancing is not free, but the costs are typically modest relative to the potential saving. The main costs to factor in are:
| Cost Item | Typical Range | Notes |
| Discharge fee | $150 – $500 | Charged by your current lender to formally close your loan and release the mortgage. Amount varies by lender. |
| Application / setup fee | $0 – $600 | Some lenders charge an upfront fee for a new loan. Many competitive lenders charge nothing. Check the new lender’s PDS. |
| Break cost (fixed) | $0 – $50,000+ | Only applies if you are exiting a fixed rate loan before the end of the fixed period. Can be very large. Get the exact figure from your lender before proceeding. |
| Legal / settlement | $200 – $400 | Some lenders include this in their fee structure. Your broker will clarify what is included. |
| Cashback incentive | Up to $4,000+ | Many lenders offer cashback for refinancers, typically $2,000–$4,000. This offsets switching costs and can make the break-even point immediate. Subject to eligibility conditions. |
For most borrowers on a variable rate loan, total switching costs fall in the $500–$1,500 range. At a monthly saving of $300–$400, that is a break-even period of 1.5–5 months — after which you are ahead. A cashback from the new lender can reduce net switching costs to zero or even make refinancing immediately profitable.
If you are on a fixed rate loan, the break cost calculation is based on the difference between your contracted fixed rate and current wholesale rates for the remaining fixed term, applied to your outstanding balance. The formula is complex and the amount can be substantial potentially tens of thousands of dollars — if rates have fallen significantly since you fixed. Always request an exact break cost figure from your lender before signing anything with a new lender.
Refinancing is almost always worth considering if:
Loyalty tax is real. Research consistently shows that existing borrowers pay higher rates on average than new borrowers at the same lender. Lenders rely on inertia. A broker negotiating on your behalf, with a competing offer in hand, can often achieve a rate reduction from your current lender without switching at all, or identify a materially better product elsewhere. Either way, you win.
There is no legal limit on how often you can refinance. Practically, refinancing too frequently can affect your credit score (each application results in a credit enquiry), reset any cashback clawback periods, and incur switching costs repeatedly. Most financial professionals suggest reviewing your loan every 2–3 years. If your rate is materially uncompetitive, reviewing sooner is worth it regardless of when you last refinanced.
Yes, briefly. When you apply for a new home loan, the new lender performs a credit enquiry, which appears on your credit report and typically reduces your score by a small amount for a short period. Multiple applications in a short period (rate shopping) can have a more pronounced impact. A broker typically submits one application to the most suitable lender based on your profile, which is more efficient than applying to multiple lenders directly.
Most lenders require a property valuation as part of the refinancing process. This is typically arranged and paid for by the new lender at no cost to you, or included in the application fee. The valuation determines your current LVR, which affects the rate you are offered and whether LMI applies. In some cases, lenders accept an automated valuation (AVM) rather than a full physical inspection, which speeds up the process.
Yes, but LMI may apply if your LVR is above 80%. This adds a cost to refinancing that may erode or eliminate the benefit of the lower rate. Use our LMI calculator to check the LMI cost at your current property value and loan balance. Some lenders offer cashback that can offset LMI costs in specific scenarios a broker can assess this for your situation.
Refinancing typically takes 2–6 weeks from application to settlement. The main variables are the speed of the new lender’s credit assessment, valuation turnaround, and coordination with your existing lender for discharge. Refinancing is materially simpler than a new purchase — there is no contract deadline, no conveyancer managing a settlement workspace, and no simultaneous sale to coordinate. Your broker manages the process on your behalf.
Yes. If your property has increased in value since you purchased, or you have paid down a significant amount of principal, you may have equity you can access by refinancing to a higher loan amount. This is called a cash-out refinance or equity release. Common uses include home renovations, investment property deposits, debt consolidation, and other major expenses. The funds are typically paid into your nominated account at settlement. See our refinancing loans page for more detail on equity access.
The calculator shows what a lower rate would save. What it cannot show is the rate you could actually qualify for today. Your broker has access to the current pricing across 50+ lenders including rates that are not publicly advertised and can negotiate on your behalf with both your existing lender and alternatives.
Ready to find out what you’re actually paying versus what you could be paying? Book your free rate review today — call us on 0483 980 002 or contact us online.
