How much can refinancing save me?

A 0.5% rate reduction on a $500,000 loan saves about $2,500 per year. Over a 25-year loan, that's potentially $40,000+ in savings even after accounting for refinance costs.

What are the costs of refinancing?

Typical costs include: discharge fee from old lender ($150-400), application/establishment fee ($0-600), valuation ($0-300), and legal/settlement costs ($200-500). Many lenders waive fees or offer cashback to offset these.

§ Tool · tier 2 · independent

Refinance Opportunity Detector.

Compare your current loan to market rates and calculate exact savings

Live dataFree, no signupOn-deviceLiveupd May 2026

Inputs

Your numbers

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Move the sliders or type in the form on the left — the math updates live as you go. Click Get AI verdict when you want a written analysis.

Refinancing can save you tens of thousands - but only if the numbers stack up. Our AI compares your current loan to today's market rates, factors in all costs (including break fees), and tells you exactly how much you could save.

§ Worked examples

Real-world scenarios

Variable Rate Refinance

Michael has $380,000 remaining on his loan at 6.8%, property worth $620,000. Market rates are 6.1%.

Inputs

currentLoanAmount:380,000currentRate:6.8propertyValue:620,000remainingTerm:23loanType:Owner Occupier

Potential savings: $2,660/year ($221/month). Over 23 years: $42,000 after refinance costs. Recommend refinancing.

Small Rate Difference

Sarah is at 6.3% with $450,000 remaining. Best market rate is 6.15%.

Inputs

currentLoanAmount:450,000currentRate:6.3propertyValue:700,000remainingTerm:26loanType:Owner Occupier

Saving only 0.15% = $675/year. Refinance costs ~$1,500-2,000. Better to negotiate with current lender instead.

§ FAQ

Questions Australians ask

§ Glossary

Plain-English definitions

Comparison Rate

A rate that includes both the interest rate and most fees, giving a truer picture of loan cost. Required by law to be displayed.

Discharge Fee

The fee your current lender charges to release the mortgage when you refinance. Typically $150-400.

Cashback Offer

A payment from new lenders to attract refinance customers. Often $2,000-$4,000, used to cover switching costs.

§ Pair it with

Related tools

Scan Current Rates

See the latest rates available across the market.

Negotiate Your Rate Instead

Sometimes your current lender will match - here's how to ask.

Full Loan Health Check

Get a comprehensive assessment of your loan's competitiveness.

How to use

01Enter your current loan balance and rate
02Provide your property value for LVR calculation
03Enter remaining loan term
04Get personalized refinance recommendations

Pro tips

Refinancing usually makes sense if you can save 0.25% or more AND have at least 2 years left
Many lenders offer cashback of $2,000-$4,000 to cover switching costs - factor this in
Wait until any fixed rate period ends to avoid break costs unless savings are massive
Your existing lender often matches competitors - use refinance quotes as negotiation leverage

Avoid these

Only looking at advertised rates - comparison rates include fees and give the true picture
Forgetting about fixed rate break costs which can be $10,000+ depending on market conditions
Not factoring in the cost of new valuations, legal fees, and settlement costs
Refinancing repeatedly and resetting to 30 years each time - you pay more interest overall

Disclaimer: Estimates only. Interest rates, fees and policies change frequently. Always verify with lenders directly. General information, not personal financial advice.

Last updated · May 2026