Home-loan balance comparison
Current loan versus the selected refinance offer
Australia · AUD
Australia mortgage refinance calculator.
Compare your current home loan with refinancing, including switching costs, fixed-rate break fees, cash out, debt consolidation and assessment-rate scenarios.
Refinance offer comparison
Results include the entered break cost, selected cost treatment, cash out and consolidated debt
| Scenario | Rate | Term | Loan amount | Payment | Upfront cost | Break-even | Balance at horizon | Horizon result |
|---|
New-rate sensitivity
How Offer A changes if its interest rate is higher or lower
| Rate change | New rate | Monthly repayment | Break-even | Horizon result |
|---|
Planning estimate only—not a lender quote, payout statement, valuation, tax calculation, credit decision or recommendation. Confirm fixed-rate break costs, discharge and registration fees, possible duty, LMI, serviceability and loan terms.
Australian refinancing guide
Should you refinance your home loan in Australia?
Refinancing replaces an existing home loan with a new facility, often to obtain a different rate, change features, shorten or extend the term, consolidate debt or access equity. A lower advertised rate does not automatically mean the refinance saves money.
This calculator compares monthly cash flow, switching costs and remaining loan balances over the number of years you expect to keep the new loan. It also shows break-even, LVR and a buffered assessment repayment.
Australian mortgage refinancing costs
Potential costs include the existing lender’s discharge fee, a fixed-rate break fee, new lender application or settlement fees, valuation and legal costs, government registration charges and possible duty. Some lenders offer cashback, but a temporary incentive should be compared with the rate, fees, features and total cost.
MoneySmart recommends checking whether the benefits outweigh the costs and warns that restarting with a longer loan term can increase total interest. Review its current switching home loans guidance.
Rate-and-term refinance
Changes the rate, lender, features or remaining term without taking substantial extra cash. Keeping a similar payoff date helps make the comparison clearer.
Cash-out refinance
Adds equity released as cash to the new balance. The lender will assess LVR, purpose, valuation and ability to repay the larger loan.
Debt consolidation
Moves other debts into the mortgage. It may reduce monthly repayments but can cost more if short-term debt is repaid over decades.
Internal loan switch
The existing lender may offer a lower rate or different product without a full external refinance. Ask for a better deal before paying to move.
Fixed-rate break costs in Australia
Ending or changing a fixed-rate home loan before its fixed period expires may produce a break cost. The amount depends on the contract, remaining fixed period, balance and changes in wholesale funding or market rates. It can be large or nil.
The calculator does not invent a universal formula. Enter a current written quote from the lender. ASIC’s guidance on residential-loan termination fees notes that fixed-rate break fees are an exception to the general prohibition applying to many early termination fees.
Refinance break-even and horizon savings
Payment break-even divides upfront costs by the monthly cash-flow improvement. It is useful when costs are paid upfront, but it can be misleading when the new term is longer or costs are financed. The horizon result also compares payments and remaining balances so a lower repayment does not automatically appear to be a saving.
Cash out and consolidated debt are treated as value received when comparing balances. The calculator does not model the separate interest schedule that consolidated debts would otherwise have followed, so use the result as an initial comparison only.
Refinance LVR, LMI and serviceability
The new LVR is the refinanced balance divided by the lender-accepted property value. MoneySmart notes that borrowers with less than 20% equity may have to pay LMI when switching. A lower valuation, financed fees, cash out and consolidated debt can push LVR higher.
APRA-regulated banks currently apply at least a 3 percentage-point mortgage serviceability buffer. The displayed assessment repayment is not a full approval test; the lender will also verify income, living expenses, commitments, credit and loan purpose.
Debt consolidation risks
Securing credit cards or personal loans against a home moves unsecured debt onto the property. MoneySmart cautions that a longer term can increase interest and that the home is at risk if repayments cannot be made. Read its debt consolidation and refinancing guidance.
After comparing refinance offers, use the Australia mortgage calculator for detailed repayments and overpayments, or the Australia home equity calculator for cash-out and long-term equity scenarios.
Australia mortgage refinance questions
How do I know whether refinancing will save money?
Compare switching and break costs, repayments and remaining balances over the period you expect to keep the new loan. Do not rely only on the advertised rate or lower monthly repayment.
Will I pay a fixed-rate break fee?
You may if the fixed period has not ended. Ask the lender for a current payout and break-cost quote because the amount is contract- and market-dependent.
Can refinancing lower payments but increase total interest?
Yes. Extending the remaining term or financing costs and extra borrowing can lower the payment while increasing interest or leaving a larger balance.
Does refinancing require a property valuation?
The new lender commonly needs an accepted valuation to calculate LVR and confirm the security. Its value may differ from an owner or agent estimate.
Can LMI apply again when refinancing?
Potentially. If the new loan exceeds 80% of the accepted value, LMI may apply even if it was paid on an earlier loan.
Should I consolidate other debt into the mortgage?
Compare the total cost over a disciplined repayment period. A lower home-loan rate can still cost more if the debt is extended for many years, and the home becomes security.