Refinance Calculator
Refinancing looks straightforward until you factor in switching costs, LMI risk, and the impact on your loan term. This calculator lets you run real numbers – comparing your current loan against a new one, modelling two different ways to use the saving, and showing your net position at 12, 24, and 36 months after the switch.
It also calculates whether your LVR puts you at risk of lender’s mortgage insurance and builds that cost into the comparison automatically, so you’re able to get a true picture. And if the numbers suggest switching isn’t the best path, it provides an example showing what a rate negotiation with your existing lender could be worth instead.
How to use this calculator
Start with your current loan balance and interest rate – both are on your most recent statement or in your internet banking. Enter your remaining loan term, which is how many years are left on the loan, not the original term you started with.
Add your current property value and select your state. The calculator uses these to work out your LVR and, if it’s above 80%, estimate the LMI that would apply if you switched lenders. That figure is added directly into the switching costs so it’s reflected in every number below. Select whether the loan is owner-occupied or investment – this affects the LMI rate if LMI applies.
Enter the new interest rate you’re comparing – from a lender quote, a pre-approval letter, or a rate you’ve seen advertised. The new loan term defaults to match your remaining term but you can adjust it.
The switching costs section is pre-filled with typical defaults. Open it and adjust any figures if you have actual quotes. If your new lender is offering cashback, toggle that on – it reduces your net switching cost and flows through to the net position figures.
The calculator then shows two scenarios side by side. The first takes the monthly saving as cash flow. The second keeps your repayment the same and shows how many years sooner you’d pay the loan off. Below that, the net position card shows where you stand after all costs – including LMI – at 12, 24, and 36 months.
Common Questions
What switching costs does the calculator include?
The four standard costs are the discharge fee charged by your current lender (typically $150-$400), an application or establishment fee from the new lender (often waived for refinances, sometimes up to $600), a valuation fee ($0-$350, frequently waived as an incentive), and government registration fees which vary by state but typically sit between $100 and $300. If your LVR is above 80%, an estimated LMI figure is also calculated and added automatically. Open the switching costs section to see the full breakdown and adjust any figure if you have an actual quote.
What’s the difference between the two scenarios?
Taking the saving means your monthly repayment drops to the new lower minimum. You have more cash each month and the loan runs for the same term. Keeping the repayment the same means you keep paying what you’re paying now – but because more of each payment hits principal at the lower rate, you clear the loan significantly faster and save more in total interest. The right choice depends on whether you need the cash flow now or want to build equity faster. Both figures are shown so you can see the difference clearly.
What does LVR have to do with refinancing?
Your LVR is your loan balance divided by your current property value. If it’s above 80%, most lenders will require lender’s mortgage insurance when you refinance – and LMI doesn’t transfer between lenders, so you may be paying it again even if you paid it when you first bought. The calculator estimates this figure based on your balance, property value, state, and loan purpose, and includes it in the switching costs automatically. At higher LVRs the LMI cost can be significant enough to push the break-even well beyond two years, which changes whether switching makes sense at all.
What is the net position timeline?
Rather than a single break-even figure, the calculator shows your cumulative position – savings minus all switching costs including LMI – at 12, 24, and 36 months. This handles scenarios a simple break-even number can’t: a cashback that covers costs from day one, a rate negotiation that makes the net position flat but still positive, or an LMI cost that means the saving is real but takes longer to recover. If the 36-month figure is still negative but improving, the calculator notes this and flags whether it’s worth talking about before switching.
What is the rate negotiation option?
Lenders don’t look after existing customers the way they look after new ones – that’s just how it works. Before going to the trouble of switching, it’s worth asking whether your existing lender will reduce your rate rather than lose you. I can negotiate on your behalf for a fixed fee of $895, payable only if the lender provides the discount. The blue card in the calculator results gives you a personalised example based on your loan balance, showing the annual saving from a 0.4% discount and the month at which you’d be ahead of the fee. If the refinance numbers don’t clearly stack up within two years, this is usually the better starting point.
The calculator gives you the full picture. What it can’t do is tell you which lenders are likely to approve your situation, what rate you’d realistically qualify for, or whether a conversation with your existing lender might get you there without the paperwork. If you want to take the next step, book a call and I’ll run through the options with you.
