Home Loan Refinance Calculator
Find out how much you could save by switching to a lower interest rate, and how quickly you'd cover the cost of switching.
Loan balance over time
Tip: keep paying your old repayment
Printed from ClearCalc (clearcalc.com.au/refinance-calculator/). Estimates only, not financial advice.
How this calculator works
It compares the monthly repayment on your current loan with the repayment on a new loan at the lower rate. Both use standard principal-and-interest repayments. It then works out:
- Break-even: how long the monthly saving takes to cover your switching costs, after any cashback.
- Interest saved: the difference in total interest over the life of each loan.
- Net saving: interest saved, minus switching costs, plus cashback.
Typical costs of refinancing
- Discharge fee from your current lender, often around $150–$400.
- Government fees to discharge the old mortgage and register the new one, usually a few hundred dollars in total depending on your state.
- Application, settlement or valuation fees from the new lender. Many lenders waive these for refinancers.
- Break costs if you're leaving a fixed-rate loan early. These can be thousands of dollars, so ask your lender for a quote first.
- Lenders mortgage insurance (LMI) may apply again if you owe more than 80% of your home's value.
Watch out for resetting your loan term
If you have 25 years left and refinance onto a new 30-year loan, your repayments drop a lot, but partly because you've added five more years of interest. Ask for a loan term that matches your remaining years. If you do take the longer term, keep paying your old repayment amount, or more, to stay on track.
Before you switch, ask your current lender
Lenders often offer a lower rate to customers who are about to leave. Call your lender, tell them the rate you've been offered elsewhere, and ask them to match it. It costs nothing, and you avoid switching fees entirely. Also compare the comparison rate, not just the advertised rate, because it includes most fees.
Interest rates have risen several times in 2026, so the gap between your rate and the best rates on offer may be larger than you think. This calculator gives estimates only and isn't credit advice.
Frequently asked questions
Is it worth refinancing for a 0.5% lower rate?
Often, yes. On a $600,000 loan with 25 years left, cutting the rate from 7.0% to 6.5% saves roughly $190 a month. With typical switching costs of under $1,000, you'd break even in about 4–5 months.
How long does refinancing take?
Usually 2–6 weeks from application to settlement, depending on the lenders involved and how quickly you provide documents.
Will refinancing hurt my credit score?
A loan application adds a credit enquiry to your file, which can lower your score slightly for a short time. Avoid applying with many lenders at once. A broker can compare options with a single enquiry.
Can I refinance a fixed-rate loan?
Yes, but you may pay a break cost to leave before the fixed period ends. The cost depends on how rates have moved since you fixed. Ask your lender for a quote and include it in the switching costs above.
Last reviewed October 2026. This calculator gives an estimate for general information only. Check important figures with the relevant government agency or a licensed professional.