What Should You Do With Your Refinance Savings Estimate?
Look at the break-even figure before the monthly saving; as a guide, a 0.50% rate cut on a $600,000 balance over 25 years saves roughly $185 a month. If your switching costs are recovered within 12 to 18 months and you plan to keep the loan longer than that, refinancing is usually worth a serious look. If the saving is under about $50 a month, the better move is often asking your current lender for a repricing first, which I can request on your behalf without a full refinance.
Remember the rate you plugged in is hypothetical until a lender approves it. Your loan size, equity, and income shape decide which of 50+ lenders will offer their sharpest rate, so treat these figures as estimates subject to lender assessment. When you are ready, my refinancing guide covers the process end to end, and if you also want to pull out funds for renovations or investing, read about cash out refinancing in Sydney before you lock anything in.
How this calculator works
The calculator prices both loans with the standard amortisation formula lenders use: your balance, rate, and remaining term produce a monthly repayment, and the two scenarios are compared over the same term so the saving reflects the rate difference alone. The early payoff figure assumes you keep repayments at the old amount after switching, and the break-even section divides your switching costs by the monthly saving. Rates are assumed constant and fees other than those you enter are excluded. All results are estimates only; lenders assess the rate you actually qualify for on your LVR, income, and credit profile.
Refinance calculator FAQ
How accurate is this refinance savings estimate?
It is accurate for the inputs you enter: the maths uses the same amortisation formula lenders use. The uncertainty is the new rate itself, since the rate you qualify for depends on your loan size, loan to value ratio, and income, and differs between lenders. Treat the result as a realistic scenario rather than a quote, and confirm the actual rate before deciding.
Does using this calculator affect my credit score?
No. Everything on this page runs in your browser, nothing is sent to a lender, and no credit check occurs. A credit enquiry is only recorded if you later lodge a formal application, which is why I check your eligibility against lender policy first and apply once, to the right lender.
What costs are involved in refinancing?
Typical costs are a discharge fee from your current lender (often around $350), government registration fees, and sometimes an application or valuation fee with the new lender, though many waive these. If you are on a fixed rate, ask about break costs before doing anything. Use the break-even section above to see how quickly your monthly saving repays these costs.
This calculator is for illustrative purposes only and does not constitute financial advice. Results are based on the inputs provided and assume a standard principal and interest loan with no fees other than those entered above. Actual savings will vary. John Pierre Saliba, Lend & Loan, ACL 511092, Level 35, 100 Barangaroo Avenue, Barangaroo NSW 2000.