How much could I save by refinancing my home loan?
On a $500,000 loan with 22 years remaining, reducing your rate by 0.75% saves approximately $230/month — $2,760/year — and over $60,000 in total interest. On a $700,000 loan, the same rate reduction saves over $85,000 over the remaining term. Most refinances settle within 4–6 weeks.
- •Average Australian borrower saves $200–$400/month when they refinance
- •Variable rate loans have minimal switching costs ($500–$1,500 total)
- •Some lenders offer $2,000–$4,000 cashback on refinance — effectively paying you to switch
- •If you haven't reviewed your rate in 2+ years, you are likely paying a loyalty tax of 0.5–1.0% above new customer rates
Refinancing Savings Calculator
See how much you save by switching to a lower rate
Typical costs: discharge (~$350), application (~$300–$600), valuation (~$300), legal fees (~$500–$2,000).
Monthly Saving
$341
$4,093 per year
Total interest saved
$90,036
Break-even point
9m
Current monthly payment$3,412
New monthly payment$3,071
Cumulative Net Savings Over Time
Starts negative (refinancing costs), turns positive at break-even, then every month is pure saving.