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Refinance Comparison Calculator: Compare Two Offers
The cheapest refinance offer is the one with the lowest total cost over the time you keep the loan, not just the lowest rate. Enter your current loan and two offers, such as a new lender and a retention offer from your current lender, to compare repayments, fees, cashback and break-even.
Calculating…
| Estimate | Current | Offer A | Offer B |
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Estimates only, based on the figures you enter. This is general information, not credit or financial advice, and not a lender quote. See the calculator disclaimer.
How to compare refinance offers
- Use the same balance and term: compare each offer on your current balance over your remaining years, so a longer term does not make repayments look cheaper.
- Include every fee: add ongoing monthly and annual fees, plus one-off switching costs such as discharge, application, valuation and settlement fees.
- Count cashback once: enter cashback as a one-off amount. It offsets switching costs but does not reduce the rate.
- Look at the full term and break-even: the net saving over the term shows the overall winner; break-even shows how quickly switching costs are recovered.
Compare a new lender with a retention offer
Before switching, ask your current lender for a better rate. A retention offer usually has no switching costs, so it can beat a slightly lower rate elsewhere once fees are counted. Moneysmart suggests asking your lender before you move. Enter the retention offer as Offer B to see the difference.
Why the lowest rate is not always the cheapest loan
- Annual and package fees can outweigh a small rate difference on smaller balances.
- Switching costs take time to recover. If you might sell or refinance again soon, a quick break-even matters more than the long-term saving.
- Comparison rates are calculated on a standard $150,000 loan over 25 years, so they may not reflect your balance, term or fees. NAB explains comparison-rate assumptions.
- Features such as an offset account, redraw or fixed-rate restrictions are not costed here but can change the real value of a loan.
To test one offer in more detail, including payoff time at the same repayment, use the full refinance calculator. To list every switching cost, use the refinance costs and break-even calculator.
Turn the estimate into your next step
Use the when-to-refinance guide to compare the result with your holding period and loan features. Gather consistent written offers with the document and quote checklist.
Frequently asked questions
How do I compare two refinance offers?
Compare them on the same balance and remaining term, include every ongoing fee and switching cost, subtract any cashback, then look at the net saving over the term and the break-even time.
Should I include a retention offer from my current lender?
Yes. A retention offer usually has no switching costs, so it can be the better deal even when another lender's rate is lower. Enter it as one of the two offers.
Is a lower comparison rate always better?
Not necessarily. Comparison rates use a standard $150,000 loan over 25 years. Your actual balance, term and fees can produce a different result, which this calculator shows.
Where do the figures come from?
Repayments assume principal and interest at a constant rate over your remaining term, using the same calculation engine as the main Refinance Calculator AU calculator. They are estimates, not lender quotes.
Does the comparison include offset accounts or LMI?
No. Offset and redraw benefits and lenders mortgage insurance are not modelled. Add any LMI quote to the offer's switching costs.
Sana Hosseni is a mortgage broker with more than 23 years of experience and an elected director of the MFAA Board. More about Sana and these calculators.
Continue exploring
Where will your next move take you?
Choose the calculator or guide that helps you understand your next refinance decision. Browse all calculators or explore the guides.
Calculators and practical guides
Compare your current loan with a new loan, including repayments, fees and payoff time.
Work out your loan-to-value ratio, equity and distance from 80% LVR.
Estimate your usable equity and the loan amount at your chosen LVR.
Add up switching costs and estimate how long your savings take to cover them.
