How much can I save by refinancing my home loan?

The savings depend on how much lower your new rate is and how much you owe. As a rule of thumb, each 0.25% rate reduction on a $600,000 loan saves approximately $1,500 per year or $125 per month. On a $800,000 loan the same reduction saves around $2,000 per year. Use this calculator to see your exact savings based on your current balance and rates.

When is refinancing not worth it?

Refinancing may not be worth it if: you plan to sell within 12 months (you may not recoup costs), you have a fixed rate with high break costs, your loan balance is very small (less than $100,000), or you are already close to paying off your loan. Your broker can assess whether the numbers stack up for your specific situation.

Refinance Savings Calculator 2026

Q: What costs are involved in refinancing?

Refinancing typically costs $1,000–$3,000. Main costs include: discharge fee from your current lender ($150–$400), loan establishment fee with the new lender ($150–$700), valuation fee ($0–$300, often waived), and legal/settlement fees ($150–$400). If your current loan has a fixed rate, break costs can be significantly higher — sometimes $5,000–$30,000 depending on how far rates have moved.

Q: How long does it take to break even after refinancing?

The break-even point is when your cumulative savings exceed the total refinancing costs. If refinancing costs you $2,000 and saves you $300 per month, you break even in under 7 months. Most borrowers break even within 6–18 months. This calculator shows your exact break-even month.

Q: How often should I review my home loan?

Most financial experts recommend reviewing your home loan at least once every 2 years, or whenever the RBA cash rate changes significantly. Many Australians are paying 0.5–1.5% more than necessary simply because they haven't reviewed their rate. A mortgage broker can review your loan for free and tell you within minutes whether a better deal exists.

🏠 Current Loan

Remaining Loan Balance

Remaining Loan Term

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📊 Interest Rate Comparison

Current Rate

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New Rate

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Rate difference: 0.60% — enter rates above

💸 Refinance Costs

Discharge Fee (current lender)

New Loan Establishment Fee

Valuation Fee (often waived)

Legal / Settlement Fee

Fixed Rate Break Costs (if applicable)

Estimates only. Fixed-rate break costs vary significantly — check with your lender before refinancing.

Monthly Saving After Refinancing

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Enter your rates to calculate

Annual Saving—

Total Interest Saved—

Break-Even—

Repayment Comparison

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New monthly repayment—

Monthly saving—

Total interest — current loan—

Total interest — new loan—

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Refinance Costs & Break-Even

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Cumulative Savings Over Time

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Refinance Savings at a Glance — 2026 Rate Examples

How much could you save per month by refinancing to a lower rate? These examples assume a P&I loan with 25 years remaining.

Loan Balance	Rate Cut 0.25%	Rate Cut 0.50%	Rate Cut 0.75%	Rate Cut 1.00%	Rate Cut 1.50%
$300,000	~$46/mo	~$91/mo	~$136/mo	~$180/mo	~$268/mo
$500,000	~$77/mo	~$152/mo	~$226/mo	~$299/mo	~$444/mo
$700,000	~$107/mo	~$212/mo	~$317/mo	~$419/mo	~$622/mo
$900,000	~$138/mo	~$273/mo	~$407/mo	~$539/mo	~$799/mo
$1,200,000	~$183/mo	~$364/mo	~$543/mo	~$718/mo	~$1,066/mo

Approximate monthly savings calculated at 6.50% → lower rate, P&I, 25-year remaining term. Actual savings depend on your exact balance, rates and term.

Typical Refinance Costs 2026

What does it actually cost to refinance? Here's what to expect.

Cost Item	Typical Range	Notes
Discharge fee	$150 – $400	Charged by your current lender to close the loan
Loan establishment fee	$0 – $700	Some lenders waive this as an incentive to switch
Valuation fee	$0 – $300	Often waived for refinancers with good equity
Legal / settlement fee	$150 – $400	Paid to the settlement agent managing the loan switch
Government fees	$100 – $300	Mortgage registration and deregistration
Total (variable rate)	$400 – $2,000	For most straightforward variable-rate refinances
Fixed rate break costs	$0 – $30,000+	Depends on remaining fixed term and how far rates have moved — check with your lender before proceeding

Refinancing FAQs

How much can I save by refinancing?+

Savings depend on your loan balance and how much lower your new rate is. As a rule of thumb, each 0.25% rate reduction on a $600,000 loan saves approximately $1,500 per year ($125/month). On a $900,000 loan the same cut saves around $2,200 per year. Use this calculator with your exact figures to see your personalised savings — or use our Mortgage Repayment Calculator to compare repayments at different rates. Many Australian borrowers are paying 0.5–1.5% above the best available rate without realising it.

What costs are involved in refinancing?+

For a variable-rate loan, total refinance costs are typically $400–$2,000. The main costs are: discharge fee from your current lender ($150–$400), establishment fee at the new lender ($0–$700, often waived as an incentive), valuation fee ($0–$300, often waived), and legal/settlement fees ($150–$400). Fixed rate break costs are a different matter — they can range from $0 to $30,000+ depending on how far rates have moved since you fixed. Always ask your lender for an exact break cost estimate before deciding.

How long does it take to break even after refinancing?+

The break-even point is when cumulative savings exceed the total upfront costs. If refinancing costs $1,500 and saves you $300/month, you break even in 5 months. If it costs $3,000 and saves $200/month, break-even is 15 months. For most straightforward variable-rate refinances, borrowers break even within 6–18 months — after which every month is pure saving. This calculator shows your exact break-even date. Once you've refinanced, consider pairing your new loan with an offset account to save even more.

Does refinancing affect my credit score?+

Yes, slightly. Each formal loan application results in a hard credit enquiry which can temporarily reduce your score by a small amount (typically 5–10 points). However, this effect is temporary and your score usually recovers within 6–12 months. Multiple applications within a short window can have a larger impact, so it's best to use a broker to identify the right lender before applying — rather than making multiple applications yourself.

How often should I review my home loan?+

Most experts recommend reviewing your home loan at least once every 1–2 years, or whenever the RBA moves the cash rate. Many borrowers drift onto a "revert rate" once an introductory period ends and end up paying 0.5–1.5% more than necessary. A mortgage broker review takes about 15 minutes of your time and is completely free. Learn more about your refinancing options or book a review with our team. Even if you decide not to switch, knowing your options puts you in a better position to negotiate with your existing lender.

Refinance Savings Calculator