Enter your current and proposed loan details to estimate how many months it would take for the monthly repayment saving from refinancing to offset the upfront costs - including discharge fees, establishment fees, any new LMI required, and the effect of resetting the loan term. Cashback offers can also be factored in to adjust the break-even point.

How is the break-even calculated?

We take the upfront cost of switching (discharge plus establishment plus valuation plus legal plus any new-loan LMI, minus cashback) and divide it by your monthly saving. The answer is the number of months it takes for the saved repayments to repay what you spent on day one. If the new loan isn't cheaper month to month, the break-even is treated as never reached.

Why does refinancing to a 30 year term cost more over time?

Stretching a smaller balance back over 30 years spreads the principal across more months, so each payment shrinks. The flip side is that interest compounds for longer - you keep paying interest on a slowly shrinking balance for an extra five or ten years. The chart above titled 'Total interest paid' shows this clearly. A lower monthly is not always a cheaper loan.

Will I have to pay LMI again?

Only if your refinance loan is above 80% of the property value. Refinancing does not transfer your original LMI to the new lender, so a high-LVR switch usually means a new premium. We auto-add it when your inputs cross 80% LVR. Untick the LMI box if you have an LMI waiver (some lenders offer one to medical or essential workers) or if you plan to wait until you have 20% equity before switching.

What is a cashback claw-back?

Most lenders that offer cashback include a condition: if you refinance away or close the loan inside roughly 24 months, they take the cashback back. That isn't unreasonable - they paid it to acquire you as a customer. Plan to stay with the new lender at least through the claw-back period, otherwise the cashback isn't really yours.

Does this work for fixed-rate loans?

Not in this version. Fixed-rate loans add a 'break cost' on top of the discharge fee, and the size of that cost depends on how rates have moved since you locked in. It can be anywhere from a few hundred dollars to tens of thousands and only your current lender can quote it. A fixed-rate break-cost input is on the v2 list.

What about offset account or redraw value?

Not modelled in this version. If your current loan has a big offset balance and the refinance product doesn't (or charges more for it), the headline rate gap is misleading. Treat the calculator output as a rate-vs-rate baseline and add an offset adjustment in your head if it matters to you.

Why are these fees different from what my lender quoted?

Our defaults are 2026 mid-market typical figures. Real fees vary by lender, by product, and by how hard you negotiate. Replace any line on the right-hand panel with the figure on your discharge form or offer letter - the calculator updates instantly. Your numbers always beat ours.

Is this financial advice?

No. This is general information using mid-market defaults and your inputs. It cannot account for your full circumstances, your lender's specific policies, or whether the new product is genuinely suitable for you. Run the result past a broker or a licensed adviser before signing anything. The general advice warning at the top of the page is mandatory and applies to every output below it.