Refinance Savings Calculator
Loan Calculator
Refinance Your Home Loan & Discover Your Savings
Our Refinance Savings Calculator helps you quickly estimate how much you could save on interest and repayments by refinancing your existing home loan. Whether you’re looking to reduce your monthly instalments, shorten your loan term, or simply switch to a lower interest rate, this tool gives you a clear picture of your potential savings in just a few clicks.
How the Refinance Savings Calculator Works
This easy-to-use calculator compares your current home loan with a new refinance option to show your potential financial benefit. Here’s how to use it:
- Enter Your Current Loan Balance (AUD) – The amount you still owe on your current home loan.
- Input Your Current Interest Rate (%) – The rate your existing lender is charging you.
- Enter the Remaining Loan Term (Years) – The number of years left on your loan.
- Add the New Interest Rate (%) – The rate offered by your potential new lender.
- Set the New Loan Term (Years) – Choose whether you’ll keep your remaining term or extend/shorten it.
Once you’ve filled in these fields, the calculator will instantly display how much you can save in total interest and reduce your monthly repayments by refinancing your home loan.
Refinance Savings Calculator
*This calculator provides estimates only and does not constitute financial advice.
Why Use a Refinance Savings Calculator?
Refinancing your mortgage can unlock significant savings — but understanding exactly how much you’ll save helps you make smarter financial choices. Our Refinance Savings Calculator allows you to:
- Compare old vs. new loan scenarios instantly.
- See how lower interest rates impact your total loan cost.
- Visualise long-term savings on your mortgage repayments.
- Decide whether refinancing is financially beneficial before applying.
- Plan your cash flow with accurate repayment projections.
Example: How Much Can You Save by Refinancing?
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 refinance at a new rate of 5.9% p.a. for the same term, you could save approximately $48,000 in total interest over the life of your loan — while reducing your monthly repayments by around $160.
This demonstrates how even a small reduction in your interest rate can lead to substantial long-term savings.
Benefits of Refinancing Your Home Loan
Refinancing can do more than just lower your rate — it can reshape your entire financial strategy.
Lower Interest Rates
Move to a lender offering a better rate and pay less over time.
Reduced Monthly Repayments
Free up cash each month by decreasing your repayment amount.
Shorter Loan Tenure
Opt for a shorter term to pay off your home loan faster and reduce total interest costs.
Consolidate Debts
Combine other loans or credit card debts into your home loan for simplified repayment management.
Flexible Loan Features
Access offset accounts, redraw facilities, or flexible repayment options not available in your current loan.
When Should You Consider Refinancing?
You might want to refinance your home loan if:
- Your interest rate is higher than current market rates.
- You want to switch from variable to fixed (or vice versa).
- You’re seeking better features or a more flexible loan structure.
- You want to access your home equity for renovations or investments.
- Your financial situation has improved, and you can now negotiate better terms.
Refinancing is often worthwhile when the interest rate difference outweighs the costs of switching lenders (such as discharge or setup fees).
Make an Informed Decision Before Refinancing
Before switching, always compare:
- New lender’s interest rates and fees.
- Break costs (if your current loan has a fixed rate).
- Potential application or valuation fees with your new lender.
Use this calculator as a preliminary assessment tool to evaluate whether refinancing delivers meaningful savings.
Disclaimer
This calculator provides general estimates only and does not constitute financial or legal advice. Actual savings may vary depending on your lender, loan type, and personal financial circumstances. Please consult a qualified financial professional before making refinancing decisions.
