Contact details

Card image cap

Refinance Calculator

Our home loan refinance comparison calculator will help you understand what you could save on your home loan

In November 2023, Australian refinancing reached an all-time high. Once seasonally adjusted, the value of owner-occupied refinancing between lenders hit $13.4 billion, compared to the 3.7% fall in new home loan commitments. This indicates that Australians prefer to switch lenders to obtain lower interest rates rather than open a new loan or negotiate with their current lender.

In its simplest definition, refinancing refers to switching home loans to obtain a lower interest rate or shorter loan term. Refinancing your home loan offers many other benefits beyond the amount you could save, which we will explore on this page.

Why consider refinancing?

If you currently have a home loan with high-interest repayments or an unfavourable loan amount for your finances, you may want to consider refinancing. 

Switching home loans allows you to enjoy several benefits that you would not be able to obtain through your current loan or by opening a new loan, including:

  • Save money: Refinancing your home loan can lower your interest rate, lower your monthly repayments, and access more potential savings.

  • Access equity: You can access the equity you have built up in your home by refinancing your mortgage. 

  • Debt consolidation: Streamline your debt when you refinance your home loan and reduce the interest you pay on multiple debts.

  • Pay off your mortgage sooner: Reduce your loan balance by refinancing to a low-interest rate. You can also do this by choosing a home loan with a shorter loan term, allowing you to finish paying off your mortgage sooner.

  • Better loan features: Your home loan with an existing lender may not offer useful features, or you may have found a loan that provides exactly what you want.

  • Changing loan type: Refinancing to a new lender or loan can allow you to avoid the higher interest rate of a variable rate by obtaining a fixed-rate loan.

Exclusive features of our refinance calculator

Get a Better Rate's refinance calculator offers a simple process to give you the full picture of your potential savings when switching loans. There is no need to fill your head with complex numbers when our refinance calculator makes things easy yet accurate.

Whether you are considering refinancing your home or an investment property, we can give you a clear answer on how much you could save by changing home loans with our guidance.

Step-by-step guide on using the calculator 

Learning what you could save when you refinance with Get a Better Rate only takes a few simple steps:

  1. Choose what the purpose of your property is: to live in or as an investment.

  2. Choose your repayment type: principal & interest or interest only.

  3. Enter the interest rate of your existing home loan in the top bar.

  4. Enter your current home loan amount in the bar underneath that.

  5. Enter your current loan term in the final bar.

  6. Sit back and watch our efficient refinance calculator determine what you could save when you refinance.

Refinance comparison calculator

Our home loan refinance comparison calculator, will help to understand what you could be saving on your home loan

  
Yrs  

Lowest variable rate loans



Maximising insights from our refinancing calculator

Once you have your results from our refinance calculator, you should determine what to do next.

Our calculator provides insight into which lenders from our extensive panel can offer you the highest savings. We factor in your loan's interest rate and length of term, matching it with a new loan that can greatly reduce your monthly repayment amount.

Maximise these insights by determining what type of loan you really need and whether you want features like extra monthly repayments. Taking the time to consider what you are looking for in a loan can help you narrow down the options we offer.

Understanding your refinance options

When refinancing, you can choose a new loan type to structure the future of your home loan around. There are three options to choose from:

  • Fixed-rate loans: A fixed loan offers greater stability than other refinance options as your repayment frequency and amount remain consistent. There will be no sudden change to interest rates, meaning your principal and interest repayments will not get more expensive if the mortgage market gets more expensive.

  • Variable-rate loans: This loan type often grants access to additional features like a redraw or offset account. The variability of interest rates is also capitalised on, with your interest repayments dropping in cost every time interest rates do so. You can even speed up paying off your mortgage using the extra repayments feature, which is generally exclusive to this loan type.

  • Interest-only loans: Your loan repayments on an interest-only loan offer the benefit of only covering interest on the total loan amount owned. This means lower initial home loan repayments, helping you save more while securing a property. Those who only have a short period left on their loan term can benefit the most from this refinancing option as they can make the most of the lower repayment amounts.

Is refinancing a good idea? 

There is no blanket answer as to whether refinancing is a good idea. This is because each home loan and a borrower's situation is unique and may or may not benefit from refinancing in various ways. 

We recommend weighing the pros and cons of refinancing before you submit your home loan refinance application.

While we have discussed in-depth why you should consider refinancing, you may want to withhold from switching home loans because of certain factors:

  • Lenders mortgage insurance: If your equity is less than 20% of your property's value, your lender will likely ask you to take out lenders mortgage insurance when you refinance. This could affect your potential savings as it involves additional costs.

  • Fees and charges: While obtaining a new loan involves the usual applicable bank fees, refinancing may incur additional charges for exiting your old loan. These include valuation, application, or exit fees. Other ongoing fees may also arise if you switch from your current lender.

  • Credit score: As customary for any loan application, applying for credit approval affects your personal credit file. Refinancing your home loan can also impact your credit score, which may influence your ability to obtain a lower interest rate.

You can prevent many of these disadvantages by finding a new loan with more benefits than drawbacks. You should always check the comparison rate between your existing and potential loan to ensure you save more throughout the loan's life.

Compare home loans with Get a Better Rate to clearly understand your finances' future.

Why use a mortgage broker to help you refinance

Uncovering the best home loan for your interest savings and loan term reduction can be a lengthy and complex process. Leave the hard work to expert mortgage brokers, who have the time and resources to find the perfect home loan to refinance with.

At Get a Better Rate, our brokers have years of experience matching clients with the home loans they need most. We offer a diverse panel of lenders and ongoing personalised advice, ensuring your needs come first.

Learn more about our Sydney CBD mortgage brokers here. 

Book a free refinance consultation with Peter Hammond 

Start your refinance journey by talking with home loan expert Peter Hammond. With decades of experience advising Australians on how to save with the right home loan, Hammond and his dedicated team at Get a Better Rate offer advice you can trust.
This includes a free refinance consultation to consider your options.

There is no pressure to go ahead with refinancing your current home loan with Get a Better Rate, but we remain alongside you throughout the entire process. Our expert advice and thorough guidance will always be available from the initial consultation to the loan settlement date. So, get in touch with Get a Better Rate for a free consultation on your refinancing today!

FAQs about refinancing 

What is home loan refinancing?

Refinancing your home loan involves replacing your current loan with a new one. This is typically done to reduce the loan balance through a lower interest rate and shorter loan term.

When can you refinance a home loan?

Technically, you can refinance your home loan whenever you choose. However, if your current loan term has yet to end, you may incur break costs and other additional charges. Refinancing may also not be worth it financially if you have had a loan for less than a year or have a low percentage of equity in your existing loan.

Additionally, it is useful to check if your lender has set lending criteria for refinancing.

How much does it cost to refinance a home loan?

The costs associated with refinancing depend on various factors, making an exact cost difficult to give. For example, paying off a fixed loan early will likely incur additional fees.

Your existing and future lenders will likely offer different cost rates for various processes. For example, one lender may offer a discharge fee from your current loan of $150, which is closer to the minimum. Alternatively, another lender may charge higher than average, at $400.

Ultimately, discussing the possible refinancing costs with your existing and/or potential future lender before deciding is best.

How much equity do I need to refinance?

Before refinancing, having over 20% equity in your current home loan is best. If you have less than 20%, your future lender is likely to charge you with lender mortgage insurance.

The higher the percentage, the better it is for you to refinance.

How often can you refinance a home loan?

Most lenders do not have a necessary waiting time before you can refinance again. However, many lenders encourage waiting at least six months after closing the previous loan before applying for a new one.

How long does it take to refinance a home loan?

On average, refinancing a home loan takes about the same time as applying for the original loan. From the initial application to the settlement date, it generally takes 4- 8 weeks.

Next steps and getting started

Once you have determined that refinancing is the way to go and calculated how much you can save, see how a refinance mortgage broker can help.

Professional assistance is available with Get a Better rate throughout the life of the loan you choose when you sign up for our services. So call our principal broker, Peter Hammond, at 0420 991 404 to begin the refinancing process!

What's next?

Our qualified mortgage brokers are avaliable to assist you with your home loan. Follow the link below and we will have someone contact, to discuss how we can assist you.

More calculators

Loan Repayment

How much will be loan repayments be?

Use calculator

Stamp Duty

Purchasing a new property, calculate the cost of stamp duty

Use calculator

LMI Quote

Will you need to pay lenders mortgage insurance, get a quick quote

Use calculator

Compare Loans

Compare hundreds of home loans from 40 different lenders

Compare Home Loans