Mortgage Repayments & Amortisation
Understand interest, principal, extra payments and alternative schedules in detail.
MORTGAGE KNOWLEDGE CENTRE · REFINANCING
Refinance Calculator: Switch, Reprice or Keep Your Loan
Will switching lenders actually put you ahead? Compare the interest, fees and remaining debt—not just lower repayments. Then test whether negotiating a better rate with your existing lender wins instead.
Compare your refinance options
Start with your existing loan and the offer you're considering. Open Advanced to test cashback, offset, repricing and a term reset.
Calculate to compare switching, keeping your loan, and repricing.
Get a better deal, without doing the lender legwork.
AI-powered lender matching, real negotiation and experienced help when switching isn't straightforward.
Is refinancing worth it or should you negotiate your current rate?
A new lender's headline interest rate may look attractive, but a sound decision compares the mortgage over the same future period. Keep your existing loan, take the new offer, and ask your current bank for a lower rate: these are three different paths. Each has a different payment, interest cost and remaining balance at the point you expect to sell, refinance again or review your loan. That is why this calculator models all three instead of simply dividing switching fees by the monthly repayment difference.
What is the real refinance break-even point?
The break-even month is when cumulative interest and fee savings, adjusted for any cashback and financed switching costs, first outweigh the costs of switching. A mortgage does not maintain today's balance for the next five years: scheduled payments reduce principal each month. The interest-rate saving therefore generally declines as the debt shrinks. Your holding period can be more important than a small rate discount.
Example: a $650,000 mortgage with 22 years remaining
Imagine paying 6.25% and being offered 5.85%, with $1,200 in switching costs. Refinancing to another 22-year term makes a meaningful like-for-like comparison possible. Resetting instead to 30 years lowers required monthly payments but may leave you owing significantly more after five years and increase lifetime interest. Compare interest and fees alongside the remaining mortgage, not just monthly cash flow.
Why does a 30-year term reset create a trap?
A repayment is partly interest and partly principal. Extending the repayment schedule spreads principal across more years. Even if the rate falls, you may reduce the monthly commitment while paying principal down more slowly. That matters when you sell or refinance later: the new balance can be larger than the balance you would have had by staying. Our three-way comparison shows that difference separately.
Cashback: incentive, not interest saved
A lender cashback can offset upfront refinancing costs. It may change the month you reach break-even, but it does not change the underlying interest rate. Conditions, minimum loan sizes, timing and eligibility vary. Enter only the cashback you expect to receive, and use net economic savings rather than a headline promotional number.
What if my current bank offers a rate reduction?
Repricing can be compelling because you potentially avoid discharge, valuation, registration and application costs. The advanced comparison models an assumed rate your current lender may agree to and any repricing fee. This is a scenario—not a claim that the current lender will accept that rate. Compare the repricing path to refinancing before deciding whether the work of switching is justified.
Offset accounts, package fees and extra repayments
A low advertised rate isn't always the cheapest arrangement once package fees and lost offset benefits are considered. An offset reduces the interest-bearing portion of eligible principal; it may be valuable even if a replacement mortgage has a slightly lower rate. The advanced model allows different current and proposed offset balances, package fees and monthly extra repayments. The estimate uses constant offsets and monthly interest rather than attempting to reproduce each lender's daily calculation, posting dates or changing transaction balances.
Know your numbers. Then let us negotiate.
We find lender matches and work through real refinancing obstacles—not just quote comparison tables.
Frequently asked refinance questions
How much lower must the new rate be to justify refinancing?
There is no universal percentage. It depends on balance, rate gap, fees, offset benefit and how long you expect to hold the loan. The calculator derives an estimated break-even date from your own assumptions.
Can I refinance for a lower repayment without saving money?
Yes. Resetting the term may reduce required payments while increasing total interest and debt outstanding after a chosen number of years.
Are discharge, registration and valuation fees included?
Enter their combined amount under Advanced switching costs, along with any other confirmed costs. Fixed-rate break fees may be material and should be included if applicable.
What if I have a large offset balance?
Enter the current and new offset balances separately. A product with less offset access may provide fewer interest savings than its rate suggests.
What if my current lender matches the new rate?
The third comparison models your existing loan after a negotiated rate reduction, without changing the original repayment term.
What does the break-even estimate leave out?
Future interest-rate moves, changing offset balances, lender-specific daily accrual, rate discounts that expire, taxation and approval restrictions are not predicted. Run several holding periods and rate scenarios.
Next steps in your mortgage decision
Borrowing Power
Test how the new mortgage may fit the income and debt assessment.
Reprice or refinance?
Explore asking for a better deal from the bank you already use.
Is switching worth it?
Read the decision framework beyond the maths.
Buying another property as part of the switch? Check deposit and settlement cash and transfer duty, alongside repayment and offset scenarios.
Methodology and sources
We calculate monthly principal-and-interest amortisation independently for the existing, proposed and repriced loans, tracking scheduled payments, optional additional payments, outstanding balances, accrued interest and recurring fees. An equal-period economic comparison counts repayments and residual debt plus fees, less any cashback. See the detailed refinance calculation methodology. Relevant background: ASIC Moneysmart — switching home loans and offset accounts.
Own the next move. We'll handle the lender negotiation.
Smart matching and specialist help for real borrowers, not one-size-fits-all applications.
Explore the Home Loans Knowledge Centre — borrowing power, buying costs, transfer duty, mortgage repayments and refinancing.
Do not mistake a smaller minimum payment for a saving
Test the existing remaining term first, then the proposed longer term. This calculator holds offset cash constant; it does not simulate salary accumulating in offset. Use the repayment calculator for a growing offset scenario, and compare remaining debt together with retained cash.