🔄 Mortgage Refinance Calculator
See if refinancing could save you money. Compare your current rate with new refinance options and calculate potential savings over the life of your loan.
Current Loan
Refinance Option
When should you refinance?
Refinancing is basically swapping your current home loan for a new one, usually to get a lower interest rate or better features. Banks offer their best rates to new customers, so if you've been with the same lender for 3+ years, there's a good chance you're paying more than you need to.
The most common reason to refinance is to save money. Even a 0.5% rate drop can save you thousands over the life of your loan. But refinancing isn't free - you'll pay application fees, valuation costs, and discharge fees from your old lender (typically $1,500-$3,000 total). The calculator above shows you whether the savings outweigh the costs.
Changing the loan term: You can also refinance to a different loan term. Extending the term (e.g., 25 years to 30 years) lowers your monthly payments, which can help if you're under financial stress. Just be aware you'll pay more total interest over the life of the loan. Shortening the term does the opposite - higher monthly payments, but you'll pay off the loan faster and save on interest.
- Rate drop of 0.5% or more: Usually worth it. The savings typically justify the switching costs within 12-18 months.
- Rate drop below 0.3%: Borderline. Run the numbers carefully - you might be better off negotiating with your current lender.
- Better features: Switching for an offset account, redraw facility, or lower fees can also make sense even if the rate is similar.
- Consolidating debt: Refinancing to roll credit card or car loans into your mortgage can lower your overall interest costs (but extends the repayment period).