Mortgage Switching Calculator
Will switching actually pay for itself?
Switching sounds simple until you count the exit costs. A broker can work out whether the move pays for itself, and how long that takes.
Find my loan matchWhat this calculator does
Shows whether refinancing to a new loan is worth it, by weighing the interest you would save against the costs of switching – discharge fees, new application fees and any break costs on a fixed loan.
Reading the result
Enter your current loan and the new rate. The result is your monthly saving and how long it takes for that saving to cover the switching costs – the break-even point. If you will keep the loan well past break-even, refinancing usually pays off.
Example
Dropping from 6.5% to 6.0% on a $500,000 loan saves around $155 a month. If switching costs $1,000, you break even in about 7 months – everything after that is money in your pocket.
Frequently asked questions
What are break costs? A fee some lenders charge for exiting a fixed-rate loan early. Variable loans generally do not have them.
How often can I refinance? As often as it makes sense, but each switch has costs, so make sure the saving clearly beats them.
Will refinancing hurt my credit? Each application leaves a credit enquiry. A broker can help you apply once, to the right lender, rather than scattering applications.
Thinking of switching? A broker will tell you if it is actually worth it. See our rankings of the best mortgage brokers in Australia.