Is refinancing worth it?
A lower rate is not automatically a saving. Discharge and break costs, new lender fees and government charges have to be recovered, and resetting to a fresh 30 year term can cost more interest than the rate saves. This tool shows all three at once.
No rates are quoted on this site. Where a rate is needed, you enter the one you have been offered. Nothing here is recorded or sent to us.
At a glance
- You enter
- Balance, current rate, remaining term, the new rate you have been offered, and the switching costs
- You see
- Monthly and annual saving, months to break even, interest saved over the term, and what keeping your old repayment does
- Assumed
- Both rates constant, principal and interest, costs paid upfront
The method, in the order a lender uses it.
Every figure above comes from these steps and nothing else. If a lender's number differs from ours, one of the items in the second list is usually the reason.
Saving
Repayment at the current rate over the remaining term, less the repayment at the new rate over the same term. Comparing like with like is the only fair comparison.
Costs
Discharge fee, break cost and new lender fees as entered, plus two government registration fees for your state (discharge of the old mortgage and registration of the new one), from the 2026-27 land titles schedules.
Break-even
Costs divided by the monthly saving: the month from which you are ahead.
Term reset
If you choose a new term, the tool shows the lower repayment and the total interest over the new term so the cost of stretching the loan is visible.
Keep paying
Paying your old repayment into the new loan clears it sooner; the tool shows how many years and how much interest that saves.
What this tool does not include
- Cashback offers and fee rebates, which change the break-even; add them by reducing the fees you enter.
- Package fees, offset accounts and split structures on either loan.
- Lenders mortgage insurance if the new loan is above 80% of value.
- Rate changes after settlement on either loan.
Asked before the calculator, and after it.
How long should it take to break even on a refinance?
Most people want the switching costs back within a year or two. If the break-even runs past three years the saving is fragile, because the rate gap that produced it may not last. The refinancing guide.
Should I reset to a 30 year term?
Only if you need the lower repayment. Resetting adds years of interest. The middle path is to reset for flexibility and keep paying at your old amount, which the tool models.
What is a fixed rate break cost?
The lender's estimate of what it loses if you exit a fixed rate early. It rises when market rates have fallen since you fixed and can run to tens of thousands of dollars. Get the figure in writing before deciding.
Will my current lender match the offer?
Often, in part. A repricing request supported by a written competing offer is the least expensive first step, and it is where a review usually begins.
Same discipline, different question.
Each shows its method and its assumptions. None quotes a rate. All six tools.
How much could I borrow?
A lender does not start from the price of the house.
Open Loan repaymentsWhat will the repayments be?
Principal and interest, interest-only for a period, weekly or monthly, with or without extra repayments.
Open Stamp dutyWhat will the government charge?
Transfer duty is the largest cost of buying after the price itself and it differs by state, by purpose and by whether it is your first home.
Open Fixed rate endingWhat happens when my fixed rate ends?
When a fixed term ends the loan reverts to the lender's variable rate, and the repayment moves on the day.
Open Development feasibilityDoes the project stack up?
Before a lender, a valuer or a quantity surveyor looks at a project, a developer needs a first answer to one question: what margin is left after every cost, including the cost of the money.
OpenLonger reads from the archive.
When the number raises a question, ask it.
A finance review starts with a conversation and a written position from Dayan Kasturiratna, who provides the credit assistance on every file. No credit check to start.
Calculators on this page provide estimates for general information only, from the figures you enter and the assumptions shown. They do not take account of your objectives, financial situation or needs, are not credit assistance, an offer or an approval, and should not be relied on without checking with your lender, conveyancer or adviser. Opulent Finance does not provide tax, legal or accounting advice.
