What would refinancing actually save you?
Put in your balance, your current rate and the rate you are being offered, and see the monthly difference and what it compounds to over the remaining term. The monthly figure is the one people quote; the total is usually the one that changes the decision.
Example rates only, not current advertised rates. Set both sliders to your own figures.
Over the remaining term, before switching costs and fees, we model those honestly before recommending a move. Estimates only, not credit advice.
Read the total, not just the monthly
A modest monthly saving looks unremarkable in isolation and substantial once you multiply it across the remaining term. That is the number worth weighing against the effort and cost of switching. Both are shown here so you can see the trade rather than one half of it.
What this does not include
Switching carries costs on both sides: a discharge fee on the loan you are leaving, settlement and registration charges on the new one, and a break cost if you are leaving a fixed rate before it ends. Where the new loan sits above 80 per cent of the property value, lenders mortgage insurance can apply again, which changes the arithmetic considerably. These vary by lender and by state, so the tool deliberately leaves them out rather than guessing at a figure; they are modelled properly against your actual loan before any move is recommended.
Switching has costs: discharge fees on the outgoing loan, establishment or settlement costs on the new one, and government registration charges. These vary by lender and by state, so the tool deliberately leaves them out rather than guessing.
Resetting the term is the hidden cost
Refinancing to a new thirty year term when you have twenty two years left lowers the monthly repayment and increases what you pay overall. It can still be the right decision, particularly if cash flow is the pressure, but it should be a decision rather than a side effect. Keeping the remaining term is usually available and worth asking for.
Before you switch, ask your current lender
A retention offer costs nothing to request and sometimes closes most of the gap without any of the paperwork. If it does not, you have a documented comparison to act on. There is a short guide to asking for a better rate linked below.
Refinancing questions
How much of a rate difference makes refinancing worthwhile?
There is no universal threshold, because it depends on your balance and remaining term as much as the gap itself. A small difference on a large balance over a long term can be worth more than a larger difference on a small balance. Use the total figure rather than a rule of thumb.
Will refinancing hurt my credit score?
An application creates a credit enquiry, which is visible on your file. One enquiry in isolation is ordinarily unremarkable. Several applications in a short period is the pattern that reads poorly, which is a reason to apply once, to the right lender, rather than shopping applications around.
Can I refinance if my property has fallen in value?
It depends on the resulting loan to value ratio. If the loan is a high proportion of the current value the options narrow and mortgage insurance may re-enter the picture. A valuation is the first thing to establish rather than the last.
Should I fix my rate when I refinance?
That is a separate decision from whether to switch, and it turns on how much certainty you want rather than on predicting rates. The fixed versus variable guide sets out what each actually commits you to, including what happens when a fixed period ends.
How long does refinancing take?
It varies by lender and by how quickly documents are provided. The part you control is the paperwork, which is why the refinance checklist exists.
Related tools and guides
Estimates only, not credit or financial advice. This tool uses general assumptions and cannot see your credit file, verify your income or apply any particular lender's policy. Your position is confirmed in a full assessment.
Get the number checked against real pricing.
Charles will compare what you are on now against what is actually available to your profile, including the costs of moving. Free, no credit check.
