Australia Home Loan Refinance Calculator
Estimate what refinancing your home loan could mean — the change in your monthly repayment, the difference in interest over the remaining term, and how long the savings take to recover the switching costs. Calculations use standard principal-and-interest amortisation and current Reserve Bank of Australia rate data. All figures are estimates in Australian dollars (AUD).
Enter Your Current Loan
Add the balance still owing, your current interest rate, and the years remaining on the loan.
Add the New Rate
Enter the new interest rate to compare and choose the new loan term.
Include Switching Costs
Add any one-off costs (discharge, application and mortgage registration fees, plus LMI if it applies) to see the estimated monthly saving and break-even point.
AU Refinance Calculator
Compare your current home loan against a new rate · AUD
Loan Comparison
P&I · AUDYour refinance summary
A plain-English read of the difference between your current loan and the new loan, based on the inputs above. Figures use standard monthly principal-and-interest amortisation and are estimates only.
Interest paid over time
Estimated cumulative interest paid on the current loan versus the new loan across the term. The gap between the lines is the estimated interest difference. Based on the inputs and standard P&I amortisation.
| Measure | Current loan | New loan | Difference |
|---|
Repayment at different new rates
Estimated monthly repayment and monthly saving at a range of new interest rates, compared with your current rate and balance. The row matching your entered new rate is highlighted. Source: RBA Lenders' Interest Rates ↗
| New Rate | Monthly Repayment | Monthly Saving | Annual Saving |
|---|
Break-even on switching costs
Per ASIC MoneySmart, the benefit of a lower rate needs to outweigh the cost of switching. The break-even point is the time for the estimated monthly saving to recover the one-off switching costs. Based on the inputs only.
How Refinancing Works in Australia
A reference guide to switching home loans — the current rate environment, common refinancing scenarios, the costs involved, and worked examples. All figures verified against official RBA, ASIC MoneySmart and ABS sources.
The Australian Refinancing Landscape
The Reserve Bank of Australia raised the cash rate to 4.35% effective 6 May 2026 — the third increase of 2026, following moves in February and March that reversed the cuts made through 2025. Variable home loan rates generally move in line with the cash rate, so repayments for many borrowers have risen over the year.
According to the RBA's Lenders' Interest Rates series, the average rate on outstanding owner-occupier housing loans is around 5.50%, while the average on new owner-occupier variable principal-and-interest loans is around 5.42%. Refinancing is the process of replacing an existing home loan with a new one — often to move to a different advertised rate or loan features. ABS Lending Indicators show owner-occupier refinancing has stayed well above pre-2020 levels.
Common Refinancing Scenarios
How refinancing is generally used. Treatment and eligibility vary by lender and individual circumstances — these are general descriptions only.
Rate-and-term refinance
The most common type: moving the existing balance to a loan with a different interest rate, keeping a similar term. The aim is usually a lower repayment or less interest over the life of the loan. Switching costs and any LMI need to be weighed against the saving.
Debt consolidation
Some borrowers refinance to roll other debts into the home loan. This can lower the headline interest rate on those debts, but spreading them over a long mortgage term can increase the total interest paid. The longer-term effect is the key trade-off.
Accessing equity (cash-out)
Refinancing to a larger loan can release built-up equity for purposes such as renovations. This increases the loan balance and the loan-to-value ratio, and lenders assess borrowing capacity and the purpose of the funds before approving.
Fixed-rate roll-off
When a fixed-rate period ends, the loan usually reverts to a variable rate. Some borrowers review the market at this point. Refinancing a fixed loan before the term ends can attract break costs, so timing matters.
Key Comparisons
Reference tables for the main decisions involved in refinancing. Rate figures are RBA averages and are a reference point only — advertised rates vary by lender and loan-to-value ratio.
RBA average housing loan rates (Lenders' Interest Rates, F6)
| Loan type | Outstanding loans | New loans |
|---|---|---|
| Owner-occupier (all) | 5.50% | 5.50% |
| Owner-occupier — P&I | 5.48% | 5.42% |
| Owner-occupier — Interest-only | 6.15% | 6.36% |
| Investor (all) | 5.74% | 5.66% |
| Investor — P&I | 5.68% | 5.59% |
Variable vs fixed when refinancing
| Factor | Variable rate | Fixed rate |
|---|---|---|
| Rate movement | Moves with the market / cash rate | Locked for the fixed term |
| Repayment certainty | Repayments can change | Repayments fixed during the term |
| Extra repayments | Usually flexible; offset/redraw common | Often capped; limits may apply |
| Break costs | Generally none for switching | May apply if ended before term end |
Switching cost types (ASIC MoneySmart)
| Cost | What it is | When it applies |
|---|---|---|
| Discharge fee | Settlement/termination fee to close the existing loan | Most refinances |
| Application / establishment fee | Sets up the new loan | Most new loans |
| Mortgage registration | Government charge to register the new mortgage | Most refinances |
| Valuation fee | Lender values the property | Often required |
| Lenders mortgage insurance | Insures the lender; not transferable | If LVR is above 80% |
| Break costs | Compensates the lender for ending a fixed loan early | Fixed loans ended before term end |
Worked Examples
Illustrative scenarios showing how the numbers can work. Figures are examples only, use standard P&I amortisation, and do not reflect any individual's circumstances or any specific lender's rates.
Australian Refinancing & Rate Snapshot
The interest rate environment that drives refinancing decisions
RBA & ABS data · May 2026Interest Rate Analysis
Cash rate path and average lender rates
New Loan Rates by Type
Average rate on new loans funded (RBA F6)
| Loan type | Outstanding | New loans | Difference (pp) |
|---|---|---|---|
| Owner-occupier (all) | 5.50% | 5.50% | 0.00 |
| Owner-occupier — P&I | 5.48% | 5.42% | −0.06 |
| Owner-occupier — Interest-only | 6.15% | 6.36% | +0.21 |
| Investor (all) | 5.74% | 5.66% | −0.08 |
| Investor — P&I | 5.68% | 5.59% | −0.09 |
| Investor — Interest-only | 5.87% | 5.77% | −0.10 |
Australian Home Loan & Refinancing News
Recent RBA, APRA, ASIC and ABS announcements affecting home loan rates and refinancing — sourced from official government and regulator channels.
RBA Lifts Cash Rate to 4.35%
The Reserve Bank raised the cash rate by 0.25 percentage points to 4.35%, effective 6 May 2026 — the third increase of 2026, fully reversing the cuts delivered through 2025.
Key Points
- Cash rate raised to 4.35%, effective 6 May 2026
- Third consecutive hike of 2026 (after February and March)
- Decision made on an 8–1 Monetary Policy Board vote
- Cited persistent inflation above the 2–3% target band
- Next meeting scheduled for 15–16 June 2026
Impact
Variable home loan rates generally move with the cash rate, so repayments for many borrowers may rise as lenders pass on the change.
What to Watch
Lender announcements on variable rate changes and their effective dates following the decision.
Statement on Monetary Policy: Rate Outlook
The RBA's May 2026 Statement on Monetary Policy set out its forecasts. Based on market pricing, the technical assumption for the cash rate rises further over the course of 2026.
Key Points
- Cash rate assumed to reach around 4.70% by the end of 2026 under market pricing
- Trimmed mean (underlying) inflation forecast to peak around mid-2026
- Forecasts conditioned on a gradual easing of global oil prices
- Outlook described as uncertain, with risks to both inflation and growth
Impact
Market expectations for further rate movement feed into fixed-rate pricing and lender variable rate decisions.
What to Watch
Whether incoming inflation and labour market data shift the rate outlook at upcoming meetings.
Headline CPI at 4.2% in the Year to April 2026
The ABS monthly Consumer Price Index indicator showed annual headline inflation of 4.2% in April 2026, remaining above the RBA's 2–3% target band.
Key Points
- Annual headline CPI of 4.2% for the 12 months to April 2026
- Inflation remained above the RBA's 2–3% target band
- Housing and fuel were among the larger contributors over the period
Impact
Above-target inflation is one of the factors the RBA weighs when setting the cash rate, which in turn influences home loan rates.
What to Watch
The next quarterly CPI release, which the RBA references closely for underlying inflation trends.
Refinancing Volumes Remain Historically Elevated
ABS Lending Indicators for the March quarter 2026 showed owner-occupier refinancing between lenders remained well above the levels seen before 2020, although below the 2022–23 peaks.
Key Points
- Owner-occupier external refinancing stayed well above pre-2020 levels
- Lending Indicators are now published quarterly
- External refinancing measures borrowers switching to a different lender
- The ABS notes ongoing data-quality work on internal refinancing figures
Impact
Sustained refinancing activity reflects continued borrower movement between lenders across the rate cycle.
What to Watch
The next quarterly Lending Indicators release for the latest refinancing trend.
RBA Raises Cash Rate to 4.10%
The Reserve Bank lifted the cash rate by 0.25 percentage points to 4.10% — the second increase of 2026, following the February move.
Key Points
- Cash rate raised to 4.10% at the 17 March 2026 meeting
- Second consecutive 2026 increase
- Followed inflation readings above the target band
Impact
Lenders generally adjusted variable rates in the weeks following the decision.
What to Watch
Whether subsequent data supported further movement at later meetings.
RBA Begins 2026 Hiking Cycle at 3.85%
The Reserve Bank raised the cash rate to 3.85% at its February 2026 meeting — the first increase since November 2023, marking a shift after the 2025 easing cycle.
Key Points
- Cash rate raised to 3.85% at the February 2026 meeting
- First increase since November 2023
- Began the reversal of the three cuts delivered through 2025
Impact
Signalled a change in monetary policy direction after a period of holds and cuts.
What to Watch
The pace of any further moves through 2026.
APRA Keeps the 3% Serviceability Buffer
APRA confirmed the mortgage serviceability buffer remains at 3 percentage points. Lenders assess new and refinancing borrowers at a rate at least 3 points above the product rate.
Key Points
- Serviceability buffer held at 3 percentage points above the loan product rate
- Provides a contingency for future rate rises and changes in income or expenses
- Applies when assessing borrowing capacity, including for refinancing
- APRA cited high household debt levels in keeping the setting steady
Impact
Some borrowers may find it harder to qualify to refinance to a lower rate if they cannot meet the buffered assessment rate.
What to Watch
Any future APRA review of macroprudential settings, including the buffer.
ASIC MoneySmart: Tips on Switching Home Loans
ASIC's MoneySmart guidance sets out what to weigh before refinancing, including switching costs, the risk of a longer loan term, and lenders mortgage insurance where equity is below 20%.
Key Points
- Switching can involve discharge, application and mortgage registration fees
- LMI may be payable again where the loan-to-value ratio is above 80%
- A new loan can come with a longer term, increasing total interest
- A current lender may reduce the rate to retain the borrower
- The MoneySmart Mortgage Switching Calculator compares the cost of switching
Impact
Frames refinancing as a comparison of the benefit of a lower rate against the cost of switching.
What to Watch
Confirm all fees and any LMI or break costs with the lenders involved before switching.
Refinancing — Frequently Asked Questions
Common questions about refinancing a home loan in Australia — the basics, the costs, eligibility, and special cases — verified against official ASIC MoneySmart, RBA and APRA guidance.
Important Disclaimer
For educational and informational purposes only. This calculator produces estimates of the repayment difference, interest difference and break-even point of refinancing a home loan, based on the inputs provided and standard monthly principal-and-interest amortisation. It does not capture every loan feature, fee, offset or redraw arrangement, interest-only period, or change in circumstances over the life of a loan.
Not a complete picture of a refinance. Actual outcomes depend on the specific products and lenders involved. Switching can involve discharge fees, application or establishment fees, mortgage registration fees, valuation fees and — where the loan-to-value ratio is above 80% — lenders mortgage insurance. Fixed-rate loans may attract break costs if ended early. Lenders assess borrowing capacity against criteria including APRA's serviceability buffer, so eligibility to refinance is not guaranteed. All amounts are in Australian dollars (AUD).
No warranty of accuracy. While Money Snap takes reasonable care to source figures from official authorities (the Reserve Bank of Australia, ASIC MoneySmart and the Australian Bureau of Statistics), this calculator is provided "as is" without any express or implied warranty as to accuracy, completeness, timeliness, or fitness for any particular purpose. Interest rates, fees and lending rules change frequently — figures shown may be out of date, and individual circumstances not captured by the inputs may materially affect actual outcomes.
Not financial advice. Information provided is general in nature only and does not take into account your personal objectives, financial situation, or needs. Results do not constitute financial, credit, or legal advice, and use of this calculator does not create an advisory relationship. Before acting on any figure shown, obtain personal advice from a licensed credit assistance provider or financial adviser, compare offers from multiple lenders, and read each lender's loan documentation and Product Disclosure Statement.
Limitation of liability. To the maximum extent permitted by law, Money Snap accepts no liability for any loss, damage, cost, or expense — direct or indirect — arising from reliance on this calculator or the information it produces. Users are responsible for verifying all figures with the relevant lender and authority before relying on them. Use of this calculator is subject to our Terms of Use.
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