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Refinancing Savings Calculator
See exactly how much you could save by switching your home loan - after all switching costs are factored in.
Frequently asked questions
How much can I save by refinancing?
The saving depends on the rate difference, your remaining loan balance, and how many years are left. On a $500,000 loan with 25 years remaining, a 0.50% rate reduction saves approximately $155 per month and over $46,000 in total interest. Use the calculator above to model your specific numbers - including any switching costs - to see whether refinancing is worth it right now.
What are the typical costs of refinancing?
Typical refinancing costs include a discharge fee from your current lender ($200 to $500), government registration fees ($150 to $300), and sometimes a valuation fee ($0 to $500). If you are on a fixed rate, a break cost may also apply - this can be significant and you should ask your lender for the exact figure before proceeding. Many lenders also offer cashback incentives of $2,000 to $4,000 to cover switching costs entirely.
When should I refinance my home loan?
Refinancing makes sense when the net saving over your remaining loan term exceeds the total switching costs. A useful rule of thumb: if you can reduce your rate by 0.30% or more, with at least 10 years remaining, refinancing will typically pay for itself within the first year. However, your personal situation - loan features, cashback offers, and how long you plan to keep the property - all affect the right answer. A broker can run the numbers across 60+ lenders to give you an honest recommendation.
What is a break cost and when does it apply?
A break cost applies when you exit a fixed rate loan before the fixed period ends. It compensates the lender for the difference between your fixed rate and current wholesale rates. Break costs can range from a few hundred dollars to tens of thousands - they depend on your remaining fixed period, your loan balance, and how much wholesale interest rates have moved since you fixed. Your lender must provide the exact amount on request, usually within 5 business days.
Should I consider cashback offers when refinancing?
Cashback offers can make refinancing more attractive by reducing or eliminating switching costs. However, cashback loans sometimes come with slightly higher interest rates or restrictive features that cost more over time. The right approach is to compare the true long-term cost of a cashback deal against a lower-rate loan without a cashback. A broker does this comparison across multiple lenders and can identify which option genuinely leaves you better off - not just in year one.
Is refinancing worth it?
Refinancing replaces your existing home loan with a new one - usually to get a lower rate, better features, or both. The question is never whether you can refinance, but whether the long-term savings genuinely outweigh the upfront costs. This calculator helps you answer that question with real numbers: your balance, your current rate, and the actual switching costs that apply to you.
The break-even period is the most important number to focus on. If your switching costs are $800 and you save $250 per month, you break even in just over 3 months - after that, every month is pure saving. The longer you hold the loan after the break-even point, the better the return on switching. Most borrowers who refinance at a lower rate by 0.50% or more on a typical loan balance will break even within 6 to 12 months.
What this calculator cannot show you is the full picture of lender policies. Some loans have restrictive offset account rules, clawback clauses on cashback offers, or higher revert rates after a honeymoon period. At Lendology, we compare the true cost of refinancing across our full lender panel - including the fine print that comparison sites miss. Not sure what rate you could get? Book a rate review - it is free, takes 15 minutes, and we do all the legwork.