Refinancing means paying off your existing home loan by taking out a new loan, be it with your current lender or through a different one. If you’re looking for a lower interest rate, it’s logical to assess your current home loan before refinancing, especially with banks offering refinance cashback and waived application fees.
The refinance calculator helps you determine how much money and loan-term time you could potentially save if you switched home loans.
Our expert mortgage brokers can help you refinance your home loan. Call Home Loan Experts at 1300 889 743 or enquire online.
How Do I Use The Refinance Calculator?
Our home loan refinance calculator can help you figure out how much you can potentially save by refinancing your mortgage. But before getting started, you need to be clear about what you want from your next home loan.
The benefits of refinancing can include:
- Getting a better interest rate to reduce the size of your mortgage
- Reducing your monthly repayments
- Consolidating debt such as credit cards, car loans or tax debt into one monthly repayment
- Getting a competitive interest rate by refinancing to a major lender after fixing past credit issues
- Accessing equity to renovate your existing property, to build something, to buy an investment property, to go on a holiday or just to have some cash in the bank
- Enter your current home loan balance
- Enter your current interest rate
- Enter your remaining loan term
- Enter your repayment frequency – whether you make monthly or fortnightly repayments
- Enter your monthly account keeping fee, if applicable
- Enter your discharge fee (and exit fee, if applicable)
- Your introductory term
- Your introductory or honeymoon interest rate
- The revert rate
- The upfront switching fee, if applicable
- The ongoing fee, monthly or annual, if applicable
- Scenario 1: Your monthly repayments if you don’t switch
- Scenario 2: How much you’ll save, or lose, by switching and making the minimum mortgage repayments
- Scenario 3: How much you’ll save by switching but continuing to make the same monthly repayments at the new, lower interest rate
- A home loan application or establishment fee anywhere between $500-$1,000 may apply
- Upfront switching fees can range anywhere from $1,000-$2,000
- Exit fees were banned by the government but can still be applied if your mortgage has been with the same lender since before 1 July 2011
- Exit fees can be applied with the total estimated cost of $350-$395
- A final discharge fee, termination fee or settlement fee may be charged by the lender, ranging from $150-$400
- The lender will charge you around $400-$500 to perform a professional valuation of your property
- Break cost, early termination, deferred establishment or early discharge fees typically apply when you refinance within the fixed-term period and they can be upwards of $400
- Stamp duty may apply if you increase your mortgage for cash out or equity release purposes
- Lenders Mortgage Insurance applies if your mortgage is for more than 80% of the property value
- Some lenders charge both a monthly and annual account keeping fee of $100 or more a year, particularly if you’re on a professional package with an offset account or you have an investment loan
- Some lenders charge $50 or more for each withdrawal from a redraw facility, while others don’t charge any fee
Once you’re clear about your goals, all you need to do is:
For the new home loan, all you need to do is enter:
Your results will give you three scenarios:
Note that the refinance calculator does not take into account every aspect of your personal life, such as your employment status. That’s why we recommend you call us on 1300 889 743 or complete our free assessment form so one of our Home Loan Experts can help you discover whether you’re eligible to refinance your home loan.
How Much Can I Save With Refinancing? FAQs
Before moving forward with the refinancing process, you need to confirm that you’ll be saving money with your new home loan, compared with your existing one. Otherwise, you might easily lose money instead, with the associated costs of refinancing.
What are the costs of refinancing?
Other Costs You Need to Consider
Is it Worth Paying The Break Cost?
Depending on how much you stand to save by switching to a cheaper interest rate with another lender, it may be worth paying the break cost.
Speak to one of our mortgage brokers to calculate your long-term savings from getting a cheaper interest rate today, rather than waiting for your fixed term to end. Try our break costs calculator to get an idea of how much your break costs will be before talking to our mortgage broker.
Alternatively, fill in our online enquiry form to discuss your refinancing plans.
Do You Qualify for A Refinance Rebate?
A number of major banks and lenders offer refinance rebates and cashback if you move your current mortgage over to them.
Note: You usually have to move quickly and specific requirements apply!
Should I Refinance My Home Loan?
Whether or not you should refinance your home loan depends on various factors. Most importantly, you need to be confident that you’ll be getting a better deal than your existing home loan. That’s why it’s important to compare your options properly, with the help of experts, before applying to refinance.
You also need to be aware of the pros and cons of refinancing:
|You can get a better interest rate||You have to pay additional costs associated with refinancing|
|Your lender might offer you a better deal||Your new home loan might be less flexible|
|You can switch to a different lender for a better deal||You may have to pay LMI twice|
|You can benefit from refinancing rebates and cashback||You might get enquiries on your credit file|
If you’re unsure about whether refinancing will save you money, call us on 1300 889 743 or enquire online.