Refinancing means replacing your current home loan with a new one — either with your existing lender or a different one. People usually do it to get a lower interest rate, reduce repayments, access better features, consolidate debt, or unlock equity. This calculator helps you see the potential savings by comparing your current loan against a new one.

It compares the repayments and interest costs of your current loan against the new loan you enter, over the same period. The difference is your estimated saving. It’s based on the figures you provide — your current rate and balance versus the new rate and term — so the more accurate your inputs, the more reliable the result.

No, they’re an estimate. Real savings depend on the actual rate you’re approved for, the fees involved in switching, how long you keep the new loan, and future rate movements. The calculator is a guide to whether refinancing is worth exploring further, not a firm figure.

Not necessarily. A lower rate reduces your interest cost, but the savings can be eaten up by switching fees, a longer loan term, or Lenders Mortgage Insurance. It’s the overall picture — rate, fees, term, and features — that determines whether you’re truly better off, which is why comparing the full cost matters more than the headline rate.

If you refinance a loan you’ve been paying down for several years back to a fresh 30-year term, your repayments drop because the balance is spread over more time again — but you may pay more total interest over the life of the loan. The calculator can show lower repayments and higher long-term cost at the same time, so it’s worth checking both figures. Keeping the same remaining term avoids this.

Costs can include discharge or exit fees on your current loan, application or establishment fees on the new one, valuation fees, and government charges for changing the mortgage registration. If you’re on a fixed rate, there may also be break costs (see below). A good refinance saves you more than these costs over a reasonable period.

If you refinance out of a fixed rate loan before the fixed period ends, your lender may charge a break cost (or “economic cost”) to compensate for the interest they expected to earn. These can be significant depending on rates and how much of the fixed term is left. If you’re on a fixed rate, it’s worth getting your break cost figure before deciding.

Possibly. LMI generally isn’t transferable between lenders, so if your loan is above 80% of your property’s value you may have to pay it again when refinancing. If your property has grown in value or you’ve paid the balance down below 80%, you may avoid it entirely — which can also unlock better rates.

Equity is the difference between your property’s value and your loan balance. More equity generally means more options, better rates, and the ability to avoid LMI. Some people also refinance to access equity for renovations, investing, or consolidating other debts, though that increases the loan size.

Lender cashback offers can add to your savings, but treat them as a bonus rather than the main reason to switch. A loan with a slightly higher rate and a big cashback may cost more over time than a lower-rate loan with no cashback. Weigh the ongoing rate and fees against the one-off cashback.

A common rule of thumb is to review your loan every couple of years, or whenever rates move noticeably. Lenders often reserve their sharpest rates for new customers, so existing borrowers can drift onto higher rates over time without realising. A quick comparison costs nothing and can be worth thousands.

Refinancing takes some paperwork, a credit check, and a property valuation, and the fees mean it only pays off if you stay long enough to recoup them. There’s also a “loyalty tax” most people simply don’t get around to addressing. The calculator helps you see quickly whether the effort is likely worth it for you.

Treat it as a green light to look closer. The estimate doesn’t account for your full situation or which lender suits you best, so the next step is a proper comparison across lenders to confirm the real saving and handle the switch — that’s where the estimate becomes money in your pocket.