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Refinancing

Links Property Finance · Refinance mortgage broker, Sydney: Is It Worth Refinancing for 0.5%?

Usually yes on a loan of $400,000 or more. A 0.5 per cent lower rate saves about $130 a month on $400,000 and $325 on $1 million, and the switching costs are typically under $1,500, so most borrowers are ahead within a year.

Reviewed by Charles Touma Updated 18 October 2026

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Is it worth refinancing for 0.5%?

Usually, yes: on a $600,000 loan over 30 years, 0.5 per cent is about $195 a month, $15,000 of interest in five years and about $30,000 in ten.

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Against that sit the costs of moving: a discharge fee from the old lender, government registration fees, sometimes an application or valuation fee with the new one, and on a fixed rate a break cost that can be anything from nothing to many thousands.

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The answer is a sum, not a feeling, and this page does the sum for the common loan sizes.

Part of the refinancing guide.

From a real Links file: a $66,650 balance, where the rate difference was put into dollars and weighed against fees.

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What could switching save?

Calculate your savings

$550,000
6.40%
25
6.00%

Example rates only, not current advertised rates. Set both sliders to your own figures.

Interest at 6.40%Interest at 6.00%
You could save$40,706≈ $1,628 a year in repayments
Current repayments$3,679/month
New repayments$3,544/month

Over the remaining term, before switching costs and fees, we model those before recommending a move. Estimates only, not credit advice.

Confirm your numbers.

Charles Touma, mortgage broker at Links Property Finance
5.0 from 32 Google reviews

Real outcomes for real borrowers.

★★★★★
Charles and the team recently assisted us with a refinance of our investment property. Recommend Charles and the team to all
Tony Google review
★★★★★
Charles is an absolute star at what he does. He was straight-up, highly professional, and worked hard to secure a fantastic rate for our home loan. Communication was prompt and clear the entire way through. I would trust him with any future financial needs
Alan Google review
★★★★★
Charles went above and beyond to help us secure our home loan. He worked hard to find the best option for us and kept us updated throughout the whole process. His knowledge of the lending market was impressive and he made everything straightforward.
Anthony Google review

Charles Touma, mortgage broker at Links Property FinanceCharles Touma, Mortgage Broker.

What does 0.5% save, by loan size?

Moving from a 6.50% rate to the 6% example rate, principal and interest, 30 years remaining, repayments reset to the new rate.

$400,000Monthly saving about $130. Interest saved in 5 years about $10,000.
$500,000Monthly saving about $163. Interest saved in 5 years about $12,500.
$600,000Monthly saving about $195. Interest saved in 5 years about $15,000.
$750,000Monthly saving about $244. Interest saved in 5 years about $18,800.
$1,000,000Monthly saving about $325. Interest saved in 5 years about $25,100.

Illustration only. Keeping the old repayment after switching pays the loan down faster and saves more than the interest figures above.

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What does switching cost?

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  • Discharge fee from the current lender.Commonly a few hundred dollars, charged when the old loan is paid out.
  • Government fees.Mortgage discharge and registration fees in NSW, a few hundred dollars in total, handled through the new lender’s settlement.
  • Application, valuation and settlement fees with the new lender.Many lenders waive them on a refinance; some charge up to several hundred dollars. Charles prices the all-in cost, not the headline rate.
  • Break costs on a fixed rate.The one that changes the answer. If you are part-way through a fixed term and rates have fallen since you fixed, the break cost can run into thousands and can outweigh the saving. Variable loans have no break cost.
  • LMI again, if your equity is under 20 per cent.LMI does not transfer between lenders. Refinancing with less than 20 per cent equity means paying it again, which usually kills the case for switching until the equity is there.

When does staying win?

Three situations: a fixed rate with a large break cost, equity under 20 per cent, and a loan under about $200,000 where the monthly saving is small against the paperwork. The guide to asking for a better rate covers how to do it.

In each case the first move is to ask the current lender to match the rate. Lenders routinely re-price for customers who ask with a competing offer in hand, and a re-price costs nothing.

Where the lender will not move and none of the three situations applies, 0.5 per cent is worth it on almost any loan above $400,000. The refinance savings calculator runs your own balance and rates, and the refinance checklist lists the documents.

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What else can a switch fix?

The rate is the reason to look; these are often the reason to move.

  • An offset accountMany basic loans have none. On $600,000, $30,000 in offset saves about $150 a month on top of the rate saving.
  • Cash out for a renovation or a depositA refinance can release equity at the same time, in a separate split.
  • Consolidating a car loan or cardRolling a 12 per cent personal loan into a 6 per cent home loan cuts the monthly outgoing, provided the term is kept short on that split.
  • A cashback offerSome lenders pay a cashback on a refinance. It is worth having, but the rate over five years matters more; see the cashback guide.

Common questions about refinancing for 0.5%

Is it worth refinancing for a 0.5% lower rate?

On a variable loan of $400,000 or more with at least 20 per cent equity, usually yes: the saving is $130 to $325 a month depending on the balance, and the switching costs are typically recovered within a year.

How much does 0.5% save on a $600,000 mortgage?

About $195 a month at the example rates, about $15,000 of interest over five years and about $30,000 over ten, with repayments reset to the new rate.

What does it cost to refinance in NSW?

A discharge fee and government fees of a few hundred dollars each, plus any application or valuation fee the new lender charges, which many waive. Fixed-rate break costs are extra and can be large.

Should I refinance if I am on a fixed rate?

Only once you know the break cost, so get it from your lender first. If rates have fallen since you fixed, it can exceed the saving; if they have risen, it may be nil.

Does refinancing affect my credit score?

Slightly: a refinance is a new credit application, which leaves an enquiry on the file. One enquiry has a small, short-lived effect; several in a few months look like stress to lenders.

Can I just ask my bank for 0.5% off?

Yes, and it is the first step. Lenders re-price for existing customers who ask with a competing offer. If they match, you keep the loan and save the switching costs.

Run the refinance savings calculator with your balance and rates, then the refinancing guide for how the switch runs step by step.

Get a straight answer for your situation

Send Charles your current rate and balance. He prices the switch with the lenders that suit you, lists every cost, and tells you the break-even in months. Free, no credit check.

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Charles Touma, mortgage broker at Links Property Finance
Reviewed by Charles Touma Director & Mortgage Broker · MFAA member · Credit Representative 579003 under ACL 389328 About Charles · Refinancing · MFAA register · ASIC register · Complaints processEvery page is reviewed by Charles before it is published and checked against current lender policy and the official scheme pages linked where figures appear.

General information only, not credit or financial advice. Scheme thresholds and lender policies change; the figures are illustrations on stated assumptions, not a quote. Links Property Finance holds an Australian Credit Licence authorisation and confirms eligibility against current rules in an assessment.