UtilibyWritten by the Utiliby editorial team · Last updated October 15, 2026 · Rules and formulas reviewed October 2026
What this free online Australian home loan refinance calculator does
Many Australians stay on the same home loan for years while new customers are offered better rates. Refinancing, which means moving your loan to a new lender or a new product, can cut your repayments, but the costs and the cashback differ between lenders. This free online home loan refinance calculator for Australia compares your current loan with a new one in Australian dollars and shows whether the switch is worth it.
Enter your balance, rate and years left, the break cost if your rate is fixed, the new rate, the fees and any cashback. The tool shows the new repayment, the saving, the net cost of switching, the break-even month and the total interest saved. It can also show the benefit of keeping your current repayment, which clears the loan sooner. Everything runs in your browser, so your figures stay private.
How to use the home loan refinance calculator
- Enter your current loan. Use the balance, the rate and the years left, from your latest statement.
- Add any fixed rate details. If your rate is fixed, enter the months left and your break cost. Leave both at 0 for a variable loan.
- Enter the new loan. Add the rate, term, fees and cashback.
- Decide how to pay the costs. Pay them up front or add them to the loan.
- Read the results. Check the break-even, and try keeping your current repayment to see the years you could cut.
The costs and the cashback
| Item | What it is |
|---|---|
| Discharge fee | Your old lender closes the loan |
| Application or establishment fee | New lender sets up the loan |
| Valuation and legal | Checks on the property and the paperwork |
| Break costs | Charge for leaving a fixed rate early |
| Cashback | Payment from the new lender, reducing your net cost |
The net cost is the fees and break costs minus the cashback. Some switches cost nothing, or even pay you, which gives a break-even of zero. The risk is a cashback deal where the rate is a little higher than the best available: compare the savings over your stay, not only the cheque you receive.
Worked example
A borrower owes 500,000 at 6.4% with 25 years left. A new lender offers 5.8% over 25 years with 3,000 of cashback. The discharge and valuation fees are 650. The repayment falls from about 3,345 to about 3,160, a saving of about 185 a month. The net cost of switching is negative, because the cashback is more than the fees, so there is nothing to recover, and the borrower is ahead from the first month. If the borrower keeps paying 3,345, the loan finishes nearly three years sooner. Change the figures and the answer changes: with no cashback and a break cost of 8,000 on a fixed loan, the break-even moves out to several years.
Tips for refinancing
- Ask your current lender for a better rate before you leave. Many will match an offer.
- Look at the comparison rate, which includes some fees, but also total cost over your stay.
- Check any cashback conditions, such as a minimum loan size or time to stay.
- Think about features such as an offset account or redraw, which have value.
- Do not extend the term without noticing the extra interest.
How to read your rate and your repayment
A home loan repayment is made of interest and principal. In the first years most of each repayment is interest, so a lower rate has its biggest effect early, when the balance is high. That is why refinancing sooner in the life of a loan usually saves more than refinancing near the end. Compare the rate you pay with the rate the market offers to new customers. If the gap is large and your loan is not fixed, a call to your current lender can be the cheapest first step.
Lenders also advertise a comparison rate, which folds in some fees and charges for a standard loan. It is a useful guide, but it assumes a particular loan size and term, so it will not match your case exactly. The calculator takes the opposite approach: you enter the actual rate and each fee, and it computes the real cost over the years you plan to stay. Use both views, and make sure the loan's features, such as an offset account or redraw, suit how you use your money.
Finally, think about what you will do with the saving. Keeping your repayment the same, rather than letting it fall, turns a rate cut into years off the loan. The option in the calculator shows the effect so you can decide whether you prefer lower repayments or a shorter loan.
Common mistakes
- Chasing cashback and ignoring the rate.
- Forgetting break costs on a fixed loan.
- Resetting a 30-year term.
- Ignoring features you would lose.
- Using example figures instead of a quote.
Related refinance tools and guides
This calculator is one of a set of free refinance tools on Utiliby. Depending on what you are deciding, these may help next.
- Remortgage Calculator UK: the version for another country.
- Mortgage Refinance Calculator Canada: the version for another country.
- Home Loan Refinance Calculator India: the version for another country.
- Mortgage Refinance Calculator: the US version, with a full savings view.
- Refinance Break-Even Calculator: payback month.
For background reading:
Privacy, accuracy and limits
The calculator runs entirely in your browser. The figures you enter are not sent to a server and are not stored, and reloading the page returns the example. The default rates, fees and cashback are illustrations. Interest is modelled monthly, offset accounts and rate changes are not included, and a lender decides whether to approve a loan. Confirm every number with the lender before you decide.
Frequently asked questions
How do I know if refinancing my home loan is worth it?
Compare the repayment saving with the cost of switching, which is the fees and any break costs less cashback. The break-even month tells you how long the saving takes to repay that cost. If you will keep the loan longer than that, switching is likely to pay.
How much can I save by refinancing?
It depends on your balance and the rate gap. On a 500,000 loan, a rate cut of 0.6 percentage points saves roughly 185 a month. Enter your own numbers for an exact result.
What costs are involved in refinancing in Australia?
Common costs are a discharge or exit fee from your old lender, an application or establishment fee, valuation or legal costs, and break costs if your loan is fixed. Many lenders waive some fees and offer cashback.
What are break costs?
Break costs apply when you repay a fixed-rate loan early. They reflect what the lender loses if rates have fallen since you fixed, and can be large. They can be zero, or even not apply, if rates have risen. Ask your lender for a figure.
Is cashback a good reason to refinance?
It can reduce your costs, but it should not be the main reason. Compare the rate and fees over the years you will keep the loan, because a deal with cashback can have a higher rate.
Should I wait until my fixed rate ends?
If you have a fixed rate, waiting avoids break costs but means paying the old rate until it ends. Enter the months left and your break cost and compare on the Wait tab.
What happens if I keep paying the same repayment?
On a lower rate, more of each repayment goes to the loan balance, so you finish sooner and pay less interest. Choose that option to see the years and interest saved.
Does the calculator include an offset account?
No. An offset account lowers the interest you pay by reducing the balance charged, so its value depends on your savings. Compare the cost of the account against the benefit separately.
Can I add the costs to my loan?
Often yes, but you will pay interest on them for the life of the loan. Choose that option to see the effect on the break-even.
Will refinancing affect my credit score?
Applications can be recorded on your credit file, and a lender will assess your income, expenses and credit history. Ask a lender or broker how it may affect you.
Does refinancing reset my loan term?
It can. A new 30-year loan after several years of repayments restarts the clock, which can cost more in interest. Enter the term you will actually take.
What is lenders mortgage insurance, and does it matter?
LMI is a one-off premium for borrowers with a small deposit. A refinance with a high loan-to-value ratio may involve it again. Ask your lender if it applies.
What if my home has fallen in value?
A lender uses the current value to set the loan-to-value ratio. A higher ratio may limit your options or raise the rate. Get a valuation estimate first.
What are the tax rules?
Interest on a loan for your home is not tax deductible, while interest on an investment property loan may be. Costs of refinancing an investment loan may also be deductible. Ask a tax adviser.
How accurate are the default figures?
They are examples only. Replace every field with the figures in your loan statement and the new lender's key facts sheet.
Is my information private?
Yes. The calculator runs in your browser. Nothing you enter is sent to a server, saved or shared, and reloading the page resets it.
Is this Australian refinance calculator free?
Yes. It is a free online calculator with no sign-up, trial or limit. You can print or download the results.
Sources and further reading
- Australian Securities and Investments Commission, MoneySmart, "Switching home loans" and "Refinancing your home loan" (moneysmart.gov.au).
- Australian Securities and Investments Commission, MoneySmart, "Fixed rate home loans and break costs" (moneysmart.gov.au).
- Australian Competition and Consumer Commission, information on home loan pricing (accc.gov.au).
- Australian Taxation Office, guidance on interest deductions for rental property loans (ato.gov.au).
Sources were consulted in October 2026. Standards and rules can change, so always check the official page for your situation.