See How Much You Could Save with Our Refinance Calculator

Refinancing can deliver real savings, but it's worth understanding the upfront costs before you commit. Common costs to budget for include:

• Discharge fee - charged by your current lender to close out your existing loan, typically between $150 and $400.
• Application or establishment fee - some new lenders charge this to set up your loan, though many waive it.
• Valuation fee - your new lender may require a formal property valuation, usually $200 to $600.
• Break costs - if you're on a fixed rate loan and refinancing before the term ends, break costs can be significant and are worth checking with your lender before proceeding.
• Lenders Mortgage Insurance (LMI) - if your equity has dropped below 20% of your property's current value, LMI may apply again with your new lender.
  

Our refinance calculator factors in these costs that are incurred in Australia so you can see whether the long-term savings outweigh what you'll spend upfront. Our home loan refinancing team can also walk you through exactly what applies to your situation.

Yes, refinancing does have a short-term impact on your credit score, but for most borrowers it's minor and temporary. Here's what happens:

• When you apply for a new loan, the lender runs a credit enquiry, which is recorded on your credit file.
• Multiple applications in a short period can have a more noticeable effect, so it's best to avoid applying with several lenders at once.
• Once your new loan is established and you're making consistent repayments, your score will typically recover and can improve over time.
  

Working with an experienced mortgage broker like Mortgages Plus means we do the comparison work on your behalf, which reduces the need for multiple applications. Your credit file only takes a hit when a formal application is submitted, not during the research and comparison stage.

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Making small adjustments to how you manage your loan can have a significant impact. Here are some of the most effective strategies:

1. ‍Switch to Fortnightly Repayments: Make payments every two weeks instead of monthly to end up making one additional repayment each year without feeling the difference.‍
2. Make Lump-Sum Payments: Whenever you have extra funds, put them directly towards your loan. This helps reduce the principal balance more quickly.‍
3. Use an Offset Account: Keep your savings in an offset account to lower the balance on which the interest is calculated.‍
4. Round Up Your Repayments: Increase your monthly payment slightly to shave years off your loan.
   

If your current loan isn't structured to help you pay it off efficiently, consider exploring our home loan refinancing service to find a better option.

Our calculator gives you a reliable estimate based on the figures you enter. That said, actual repayments can vary depending on a few things:

• Your lender's specific fee structure
• Whether interest is calculated daily or monthly
• The rate changes over time if you're on a variable-rate loan

We recommend using the calculator as a solid starting point for budgeting, then speaking with one of our specialists to get figures tailored to your situation.

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The break-even point is how long it takes for your monthly savings to cover the upfront costs of switching. The basic formula is:

Total refinancing costs divided by monthly savings = break-even point in months

For example, if refinancing costs you $2,000 and you save $250 per month, you'd break even in 8 months. Everything after that is money back in your pocket.

A few things that affect this calculation:

• The size of the rate difference between your current and new loan
• How many years remain on your loan
• Whether you're rolling costs into the new loan or paying them upfront
• Whether you plan to stay in the property long-term
  

Our mortgage refinance calculator works this out automatically. If you're also thinking about how refinancing fits into a broader investment strategy, our property investment team can help you look at the bigger picture.