Question 1

How do I know if refinancing is worth it?

Accepted Answer

Compare what you pay now with what you would pay on the new loan, then weigh the saving against the cost of switching. If the switching costs are recovered within a year or two and the new loan has the features you need, refinancing is often worth a closer look. Rate is only one part of it, so loan features, fees and your plans for the property matter too.

Question 2

What is the break-even point?

Accepted Answer

The break-even point is how long it takes for your repayment savings to cover the cost of switching, such as the discharge fee, any new lender fees and government registration fees, less any cashback. After that point the saving is yours.

Question 3

Why keep my repayments the same after refinancing?

Accepted Answer

If you keep paying what you pay now on a loan with a lower rate, the difference goes straight off your loan balance. That can save a large amount of interest and pay the loan off years sooner, without changing your budget. On most variable loans, anything you pay above the minimum sits in redraw, so you can still access it if you need it, subject to your lender's terms and conditions.

Question 4

What does it cost to refinance in Victoria?

Accepted Answer

Common costs are a discharge fee from your current lender, Land Use Victoria fees to discharge the old mortgage and register the new one ($129.20 each in 2026-27), and any application or valuation fees from the new lender. Some lenders waive their fees or offer a cashback, which can offset these costs.

Question 5

Does a longer loan term affect my savings?

Accepted Answer

Yes. Refinancing onto a new 30 year term can lower your repayments simply because the loan is spread over more years, and that can increase the total interest you pay. This calculator lets you keep your remaining term for a like-for-like comparison, and shows the result if you keep your repayments the same.

Question 6

Can a broker run this comparison for me?

Accepted Answer

Yes. We can compare your current loan against options from our panel of more than 60 lenders, check the fees and features that apply to you, and handle the switch from application through to settlement. The easiest way to start is a Home Loan Health Check: send us your current loan details and we will come back to you with what we find.

		Current		New		Savings
Loan	Loan Amount	Rate	Repayment	Rate	Repayment	Per month	Per Year
Loan 1Owner occupied, P&I	$500,000.00	6.50%	$3,160.34	5.99%	$2,994.54	$165.80	$1,989.62
Total	$500,000.00		$3,160.34		$2,994.54	$165.80	$1,989.62

	Total Interest	Paid Off In
Stay with current loan	$637,722	30 years
Refinance, lower repayments	$578,034	30 years
Refinance, same repayments	$489,749	26 years 2 months

	Stay	Refinancelower repayment	Refinancesame repayment
Interest	$157,675	$144,887	$143,270
Fees and switching costs	$0	$608	$608
Total cost	$157,675	$145,495	$143,878
Still owing after 5 yrs	$468,055	$465,214	$453,649

Refinance Calculator

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