SnapCalc

Refinance Savings Calculator

Calculate how much you could save by refinancing your home loan to a lower interest rate.

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Discharge fee, new loan application fee, etc.

How to Use

1. Enter your current loan balance 2. Enter your current and new interest rates 3. Enter the remaining years on your loan 4. Add estimated refinancing costs (usually $1,500–$3,000)

The break-even point tells you how long until your savings outweigh the upfront costs.

Formula

Monthly Payment = P × [r(1+r)^n] / [(1+r)^n − 1] | Break-Even = Costs ÷ Monthly Saving

Frequently Asked Questions

What costs are involved in refinancing?

Typically: discharge fee ($200–$400), new application fee ($0–$600), legal/conveyancing ($500–$1,000), and sometimes lenders mortgage insurance if your LVR has changed.

How much rate reduction makes refinancing worthwhile?

A reduction of 0.5% or more is generally worth investigating. With a $500k loan, 0.5% = ~$180/mo saving. Run the numbers with your specific situation.

How often should I review my rate?

At least every 2 years. The Reserve Bank of Australia sets the cash rate and lenders adjust; loyal customers often pay more than new customers.