Refinance Savings Calculator
Loan Calculator
See What Refinancing Could Save You
Our Refinance Savings Calculator helps you compare your existing home loan with a potential refinance option. Enter your current loan balance, interest rate and remaining term, then compare these with a new rate and loan term to estimate the potential difference in your monthly repayments and total interest costs.
How the Refinance Savings Calculator Works
Enter the details of your current home loan and the refinance option you want to compare:
1. Current Loan Balance (AUD)
Enter the amount you currently owe on your home loan.
2. Current Interest Rate (%)
Enter the interest rate applying to your existing loan.
3. Remaining Loan Term (Years)
Enter the number of years remaining on your existing loan.
4. New Interest Rate (%)
Enter the interest rate you would like to compare.
5. New Loan Term (Years)
Enter the proposed term for the refinanced loan.
The calculator will then estimate the difference in monthly repayments and total interest costs between the two loan scenarios.
Refinance Savings Calculator
*This calculator provides estimates for illustrative purposes only and does not constitute financial advice. It does not include all fees, charges or individual circumstances.
Why Use a Refinance Savings Calculator?
A refinance calculator can help you compare your existing home loan with a potential refinance option before deciding whether to explore refinancing further. You can use it to:
• Compare your current loan with a potential refinance scenario.
• Estimate how a different interest rate may affect your repayments.
• Compare estimated interest costs over different loan terms.
• See how changing the loan term may affect monthly repayments and total interest.
• Explore different scenarios before discussing your refinancing options.
Comparing Two Refinance Scenarios
Let’s say you currently owe $500,000 on your home loan with an interest rate of 6.5% p.a. and 25 years remaining.
If you compare this with a new loan at 5.9% p.a. over the same 25-year term, the estimated monthly repayment could reduce from approximately $3,376 to $3,191 — a difference of around $185 per month.
Over 25 years, this could represent approximately $55,500 less in total interest, before allowing for refinancing costs, fees or changes in interest rates.
This example is illustrative only. Actual repayments, costs and savings will depend on the loan, lender and individual circumstances.
Benefits of Refinancing Your Home Loan
Refinancing can provide a range of potential benefits, depending on your existing loan and circumstances.
Lower Interest Rate
Accessing a more competitive interest rate may help reduce your repayments and overall interest costs.
Reduced Monthly Repayments
A lower rate or different loan structure may help reduce your monthly repayments and improve cash flow.
Shorter Loan Term
A shorter loan term may help you repay your home loan sooner and reduce the total interest paid over time.
Consolidate Debts
Eligible debts such as credit cards, personal loans or car loans may be consolidated into your home loan to simplify repayments and potentially reduce interest costs.
Flexible Loan Features
Refinancing may provide access to features such as an offset account, redraw facility or more flexible repayment options.
When Should You Consider Refinancing?
You may consider reviewing your home loan if:
• Your current interest rate is no longer competitive.
• You want different loan features, such as an offset account or redraw facility.
• You want to change your loan structure or repayment type.
• You want to access available equity for an eligible purpose.
• Your financial circumstances or borrowing needs have changed.
Whether refinancing is worthwhile will depend on the potential benefits compared with the costs of switching, as well as your individual circumstances and longer-term goals.
Before Refinancing, Consider the Overall Costs & Benefits
Before deciding to refinance, it’s important to look beyond the interest rate and consider the overall impact of switching loans, including:
- The interest rate and fees on the new loan.
- Any discharge, break or other costs associated with your existing loan.
- Application, valuation or settlement costs that may apply.
- Whether changing the loan term could increase or reduce the total interest paid.
- Whether the new loan provides the features and flexibility you need.
A lower interest rate does not always mean refinancing will provide an overall financial benefit. Comparing the costs, repayments, loan structure and longer-term impact can help you make a more informed decision.
Disclaimer
This calculator provides general estimates for illustrative purposes only. Results are based on the information entered and may differ from actual lender repayments and savings. It does not take into account all fees, charges, loan features or individual circumstances. Interest rates, lending criteria and loan availability vary between lenders. Any loan is subject to lender eligibility criteria, credit assessment and approval.
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Your calculator result is a useful starting point. We can review your current home loan, compare suitable refinancing options and help you understand whether refinancing could benefit your circumstances.