Go beyond simple interest rate comparisons. Simulate real-world scenarios including variable vs fixed, cashback impact, and the cost of waiting. Get a candid, no-fluff recommendation based on your specific goals.
Property & Loan
Financials
Food, transport, bills, etc.
Car loans, personal loans
Total limit across all cards
Total owing (Afterpay, Zip, etc.)
Used to determine minimum living expense benchmark (HEM)
Refinancing Goals
Select all that apply. We'll tailor the scenarios to these goals.
The results from this calculator should be used as an indication only. Results do not represent either quotes or pre-qualifications for a loan. The specific details of your loan will be provided to you in your loan contract. It is advised that you get in touch with us before taking out a loan so that we can provide you with advice that is tailored to your situation.
Refinancing Questions Answered
Common questions Australian homeowners ask about refinancing, switching lenders, and using this calculator.
You should consider refinancing if your current rate is more than 0.5% above what's available in the market, your fixed rate period is ending, you want to access equity for renovations or investment, or your financial situation has changed significantly. Even a small rate reduction can save thousands over the life of your loan. This simulator helps you quantify the actual savings based on your numbers.
Savings depend on the rate difference, your loan balance, and remaining term. As a rough guide, a 0.50% rate reduction on a $500,000 loan saves around $1,800 per year. On a $700,000 loan, that same reduction saves roughly $2,500 per year. This simulator goes beyond simple rate comparisons and factors in your full financial position to estimate realistic savings.
Common refinancing costs include a discharge fee from your current lender (typically $150-$400), government mortgage registration fees ($150-$300 depending on the state), and potentially a valuation fee. Some new lenders also charge application or settlement fees. Many lenders offer cashback deals or fee waivers to offset these costs. Your net savings should be weighed against these upfront costs.
A refinance application will result in a hard credit enquiry, which may cause a small, temporary dip in your credit score. However, this impact is generally minor and recovers within a few months. Multiple enquiries in a short window (e.g., within 14 days) are often treated as a single enquiry by credit bureaus. A good broker will only submit your application to one lender after identifying the right fit.
Yes, but you may need to pay Lenders Mortgage Insurance (LMI) again if your loan-to-value ratio (LVR) exceeds 80%. Some lenders offer LMI waivers for certain professionals (doctors, lawyers, accountants). If your LVR is borderline, it may be worth waiting until property value growth or loan repayments bring you under the 80% threshold.
Variable rates give you flexibility to make extra repayments and access offset accounts, and you benefit if rates drop. Fixed rates lock in repayment certainty for 1-5 years but usually restrict extra repayments and offsets. Many borrowers split their loan to get both. This simulator lets you select your current loan type so the scenario comparison is tailored to your starting position.
Some lenders offer cashback payments ($2,000-$4,000) to attract refinancers. While tempting, a cashback can mask a higher ongoing rate. For example, a $3,000 cashback with a rate 0.15% higher than the lowest available could cost you more over 3-5 years than taking the lower rate with no cashback. This simulator factors cashback impact into the analysis so you can compare the real long-term value.
A straightforward refinance typically takes 2-4 weeks from application to settlement, though some lenders can move faster. The process involves a new credit assessment, property valuation (often automated), and the legal discharge of your current mortgage. Your existing lender has up to 10 business days to process the discharge. A broker manages the timeline and keeps things moving.
Lenders assess your current income, living expenses, existing debts (including credit card limits), dependants, employment stability, and the property's current value. They apply a serviceability buffer (typically 3% above the actual rate) to stress-test your ability to repay. This simulator uses similar inputs to estimate whether you're likely to qualify and what rate scenarios are realistic.
The goals help tailor the AI-generated scenarios to your priorities. 'Lower Monthly Repayments' focuses on rate savings. 'Pay Off Loan Faster' models shorter terms or extra repayments. 'Cash Out Equity' explores accessing your property's increased value. 'Consolidate Debt' looks at rolling other debts into your mortgage. 'Rate Security' compares fixed options. 'Get Cashback' evaluates cashback offers against lower-rate alternatives.
Disclaimer: This calculator is an AI-assisted simulation based on the information you provide and general market assumptions. Results may contain inaccuracies and do not constitute a mortgage loan offer, pre-approval, or financial advice. Always consult a licensed mortgage broker for an in-depth assessment of your financial situation and eligibility before making any refinancing decisions.
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