Refinance Calculator AU
Table of contents
7 sections
How to calculate your home loan refinance costs and break-even
What will it cost to leave my current home loan?
Request an itemised payout statement for your intended settlement date. Separate the outstanding loan principal from the fees: repaying the existing principal is not itself a switching fee. Ask whether discharge or administration charges apply, and whether the payout includes accrued interest or other amounts already covered elsewhere in your comparison.
If the rate is fixed, get a dated break-cost quote from the lender. The calculator cannot derive that charge from the difference between two advertised rates. The fixed-rate refinancing guide explains how to compare an early change with waiting. Refresh the quote if your proposed timing changes.
Which costs belong to the new loan?
Ask the proposed lender for application, valuation and settlement charges, relevant government registration charges, and any LMI amount. Some items may be waived or included in another charge; record the final written quote rather than assuming every possible fee applies. Government charges depend on location and the transaction. Ask the lender or conveyancer which amounts apply to your circumstances.
Put each one-off charge in a single row of your worksheet. For monthly and annual fees, record both the amount and frequency. Our refinance costs calculator accepts switching costs and a monthly saving figure. That monthly saving should already allow for ongoing fees. The savings guide shows how to make that adjustment.
How do the fees and cashback work together in an example?
Consider a fictional quote with a $350 discharge charge, $500 application fee, $250 valuation charge and $700 combined settlement and government charges. These add to $1,800. They are arithmetic examples only, not typical fees or a schedule for any Australian lender or state. Assume no break cost and no LMI for this particular example.
Without cashback, a constant $150 monthly saving after ongoing fees would recover the $1,800 cost in 12 months. If a confirmed $600 cashback applies, the simplified net switching cost falls to $1,200 and the recovery period becomes eight months. If that cashback arrives later, you still need to fund the earlier payments; the simplified calculation does not model its payment date.
How do I decide whether the cost is worth paying?
Compare the recovery period with your likely time in the new loan. With $1,200 of net cost and $150 of constant monthly savings, six months of savings total $900, leaving $300 unrecovered. At 24 months, savings total $3,600 and exceed the net upfront cost by $2,400. That is a simplified cash-flow comparison, not a forecast of variable rates or a valuation of the loan’s features.
If ongoing savings are zero or negative, positive switching costs will not be recovered through those savings. If cashback exceeds the switching costs, check the ongoing loan carefully rather than treating the initial benefit as proof of a better deal. Compare a retention offer from the current lender using the offer-comparison calculator, and use the refinancing checklist before applying.
Which costs are easy to overlook or count twice?
| Cost group | Ask for | Where it belongs |
|---|---|---|
| Leaving the existing loan | Discharge and any fixed-rate break quote | One-off switching costs |
| Establishing the replacement | Application, valuation, settlement and government charges | One-off switching costs, excluding any waived or bundled duplicate |
| Insurance, if applicable | The new lender’s LMI quote | Separate quoted cost; confirm whether it is capitalised |
| Keeping the new loan | Monthly, annual, package and offset fees | Recurring comparison, using the correct frequency |
| Promotional benefit | Eligibility, payment timing and repayment conditions | Cashback, entered once if applicable |
Can I add refinancing fees to the new home loan?
Ask the lender whether it will finance them. Adding costs to the balance means you can pay interest on those costs, and it changes the proposed LVR. Our simple costs tool does not automatically amortise capitalised fees. For a full comparison, use the lender’s proposed total balance and request a schedule that identifies financed costs; do not also treat the same amount as cash paid upfront. Keep the cost visible in your worksheet even if it is financed.
Will I have to pay lenders mortgage insurance again?
LMI may apply to a new refinance loan, and an earlier policy generally does not transfer. Ask for a new assessment and quote; do not assume previous payment removes the cost. LVR is one input, but the lender’s product rules and any applicable exemptions also matter. See how usable equity and LVR affect the proposed borrowing.
Does “no application fee” mean refinancing is free?
No. A waived application fee says nothing by itself about discharge, settlement, insurance, ongoing fees or a fixed-rate break cost. Put the offer’s written fee schedule beside the payout quote. Likewise, a cashback should be assessed together with the interest rate and recurring charges over your expected holding period.
What should I do before accepting the estimate?
Check that every number is supported by a quote or clearly marked as an assumption. Note who supplied it and when it expires. Confirm the settlement date, proposed opening balance and payment method for fees. Recalculate when a quote changes. Read how the refinancing process works and return to the guide library for further comparisons.
Sources and calculator limits
Sources checked on 29 October 2026. Examples use fixed inputs; actual fees, rates, valuations and approval rules can differ. Read the calculator assumptions and limitations. For questions about the site, contact us. About Sana Hosseni and the 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.
Compare two offers against your current loan, including fees and cashback.
Add up switching costs and estimate how long your savings take to cover them.
