Question 1

When should I consider refinancing my mortgage?

Accepted Answer

Refinancing is worth exploring when interest rates have dropped significantly since you took out your loan, when your credit score or financial situation has improved, when your fixed rate is expiring, or when you want to access equity. A rule of thumb is that refinancing is worth the effort if you can save 0.5% or more on your rate. The calculator will tell you the exact break-even point for your situation.

Question 2

What does break-even mean in refinancing?

Accepted Answer

Break-even is the point at which your cumulative monthly savings exceed the upfront costs of switching loans. For example, if refinancing costs $1,200 and saves you $200/month, you break even after 6 months. After that, every month is pure saving. If your break-even is longer than you plan to keep the loan, refinancing may not be worth it.

Question 3

What are the typical costs of refinancing?

Accepted Answer

Refinancing costs typically include: discharge fee on your existing loan ($150–$400), government registration/title transfer fees ($100–$350), and new lender application/settlement fees ($0–$600). Some lenders offer cashback refinance deals that offset these costs entirely. The calculator defaults to $1,000 as a reasonable estimate, but your actual costs depend on your lender and state.

Question 4

Can I refinance with less than 20% equity?

Accepted Answer

Yes, but you may be required to pay Lenders Mortgage Insurance (LMI) again if your Loan-to-Value Ratio (LVR) is still above 80%. This can significantly change the refinancing cost calculation. Some lenders allow LMI to be ported or waived for refinances, so check with a broker. If you're in this situation, a broker's advice is especially valuable.

Question 5

What's a good interest rate to refinance to in Australia?

Accepted Answer

As of mid-2025, competitive variable rates in Australia range from approximately 5.8% to 6.5% for owner-occupiers with good LVR (below 80%). Rates change frequently and vary by lender, loan type, and LVR. The RBA cash rate is the key benchmark — when it moves, variable rates usually follow within a month. Compare rates on canweaffordit.com.au/lenders for the latest.

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