Australian Refinance Calculator

Per ASIC MoneySmart, switching can involve a discharge (termination) fee to close the existing loan, a loan application fee on the new loan, a break fee on fixed-rate loans ended before the term finishes, and lenders mortgage insurance where equity is below 20%. Lenders may also charge a mortgage registration fee (a government charge) and a valuation fee.

Per ASIC MoneySmart, LMI generally applies where the loan-to-value ratio is above 80% (less than 20% equity). LMI is not transferable between loans, so it may be payable again on refinance if equity is still below 20%. MoneySmart notes that borrowers can ask their current lender about a partial LMI refund when switching.

Break costs may apply if a fixed-rate loan is ended before the fixed term finishes — for example, by refinancing to another lender. They compensate the lender for the loss caused by ending the contract early. Per ASIC MoneySmart, a break fee may apply when a fixed rate loan is closed before the term ends. The lender can quote the break cost amount, which varies with the remaining fixed term and market rates.

One alternative to switching is negotiating with the current lender. Per ASIC MoneySmart, telling a current lender about a cheaper loan elsewhere may prompt them to reduce the rate on the existing loan, which avoids switching costs entirely. Borrowers with at least 20% equity generally have more to negotiate with.

Yes. A new loan is a new application, so the lender assesses borrowing capacity and the property. Under APRA's prudential framework, lenders assess whether a borrower can repay at a rate at least 3 percentage points above the loan product rate — the serviceability buffer. This applies to refinancing as well as new loans.

The serviceability buffer is a minimum margin APRA requires lenders to apply when assessing repayment capacity. It is currently 3 percentage points above the loan product rate. APRA states it provides a contingency for future interest rate rises and for unforeseen changes in a borrower's income or expenses.

Equity is the share of the property owned outright — the value less the loan balance. The loan-to-value ratio (LVR) is the loan as a percentage of the property value. Per ASIC MoneySmart, an LVR above 80% (less than 20% equity) generally means LMI applies, and borrowers with more equity have more room to negotiate.

It can. Per ASIC MoneySmart, a refinanced loan can come with a longer term than the years left on the current loan. A longer term lowers the monthly repayment but increases the total interest paid over the life of the loan. MoneySmart suggests negotiating a term similar to the current one.

A variable rate can move up or down over the loan term, usually in line with the cash rate, so repayments can change. A fixed rate is locked for a set period, giving repayment certainty during that time, but may limit extra repayments and can attract break costs if ended early. Each has different trade-offs in certainty and flexibility.

Some borrowers refinance to roll other debts (such as credit cards or personal loans) into the home loan. This can lower the headline interest rate on those debts, but spreading shorter-term debts over a long mortgage term can increase the total interest paid. The longer-term effect is the main trade-off to weigh.

Refinancing to a larger loan can release built-up equity — for example, for renovations. This increases the loan balance and the loan-to-value ratio, and lenders assess borrowing capacity and the purpose of the funds. A higher LVR may bring LMI into play if it rises above 80%.

The calculator above compares any two rates regardless of the rate cycle. Even when rates are rising, an older loan can carry a higher rate than what is advertised to new borrowers, so a comparison can still show a difference. The same tests apply: the break-even point and the total interest over the term, against the cost of switching. The cash rate is 4.60%, effective 30 September 2026.