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Refinance Calculator
Refinancing looks obvious when the rate is lower. It is less obvious once discharge fees, application costs and a fresh 30-year term are included. This does the comparison properly.
Net of fees and cash-back · Like-for-like term option
At a glance
Interactive calculator
Live — results update as you type
Your current loan
Use the balance you owe today, not the original amount.
The new loan
Compare the comparison rate, not the headline rate.
Should you switch?
$0net saving after costs
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Three traps in every refinance
The term resets
A 30-year loan refinanced in year five into another 30-year term cuts your repayment and quietly adds five years of interest. Compare on the same remaining term, then decide separately whether a longer term is a choice you want.
Fees are real but small
Discharge, application, valuation and legal typically total $800–$2,500. Against a half-point rate saving on a large loan, that is recovered in months — not years.
Cash-back is marketing
A $2,000 cash-back on a loan with a higher rate is usually worth less than the rate difference over five years. Compare the rate net of all incentives, not the headline offer.
$680,000 at 6.55%, offered 5.84%
With 27 years left, the current loan costs $4,480 a month. Moving to 5.84% over the same 27 years gives $4,175 — $304 a month better.
Costs are $900 discharge plus $1,200 setup, less a $2,000 cash-back: $100 net. Interest remaining falls from $771,359 to $672,840, a $98,419 saving, and the switch pays for itself inside a month. Compare on the same term, though: stretching the new loan back to 30 years lowers the repayment and raises the total.
Refinancing questions
How often should I refinance?
Review every two years, refinance when the maths justifies it. Lenders price new business more aggressively than existing customers, so a loan that was competitive in 2021 is usually 0.4–0.8% off the market by 2024. You do not have to switch to benefit — asking your current lender to reprice often works.
What does refinancing cost in Australia?
Discharge fee $150–$400, application $0–$800, valuation $0–$350 (often waived), plus legal or settlement fees. Budget $1,000–$2,500 all in, and ask for a fee schedule in writing before applying.
Will refinancing hurt my credit score?
A single application produces a credit enquiry, which has a small and temporary effect. Multiple applications in a short window look worse. Get quotes first, apply once.
Can I refinance with less than 20% equity?
Yes, but you may pay Lenders Mortgage Insurance again, and the LMI is not refunded or transferred. Above 80% LVR, the economics of switching get much harder to justify.
What about breaking a fixed rate?
Fixed-rate break costs can be substantial — sometimes tens of thousands — because the lender recovers the interest differential. Always get the break cost quoted before you consider switching out of a fixed loan.
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Turn these numbers into a decision
A calculator gives you a range. An adviser gives you a decision — pressure-tested against your super, your tax position and the life you actually want to fund.
General advice only · No obligation · No product push
This comparison assumes constant rates and excludes ongoing fees, which vary by product. Break costs on fixed loans are not modelled and can be significant. Not a credit quote or an offer of finance.
Reviewed November 2026 · FY2026–27 rates and thresholds