How Sarah Saved $47,000 by Refinancing Her Home Loan

Sarah J. from Sydney came to us feeling overwhelmed. She'd been with the same bank for 8 years and suspected she was paying too much. Here's her story.

Sarah's Situation

• Original loan: $520,000 remaining on a $650,000 property
• Current rate: 6.89% (variable)
• Monthly repayments: $3,420
• Loan term remaining: 22 years

The Problem

Sarah hadn't reviewed her loan since taking it out. Her bank had quietly increased her rate while offering new customers much better deals. She was paying almost 1.5% more than she needed to.

What We Did

Our refinancing specialists compared 40+ lenders and found Sarah a much better deal:

• New rate: 5.89% (variable)
• Monthly repayments: $3,070
• Monthly savings: $350
• Bonus: $2,000 cashback from the new lender

The Total Savings

Here's where it gets exciting:

• Annual savings: $4,200
• Savings over remaining loan term: $47,000+
• Plus: Sarah chose to keep paying $3,420/month, which will have her mortgage-free 4 years earlier

Refinancing Costs

Sarah did have some costs to refinance:

• Discharge fee from old lender: $350
• New lender application fee: $0 (waived)
• Settlement fee: $200
• Total costs: $550
• Break-even: Less than 2 months

Could You Be Saving Too?

If you haven't reviewed your home loan in the past 2 years, you're likely paying more than you need to. Use our refinancing calculator to see your potential savings, or book a free consultation for a personalized assessment.

*Name changed for privacy. Real client case study with permission.