Question 1

When should I consider refinancing my mortgage?

Accepted Answer

Common triggers: rates have fallen since you took the loan, your credit score or finances have improved, a fixed rate is ending, or you want to access equity. A common rule of thumb is a rate at least 0.5 percentage points lower. The calculator shows the break-even month for your figures.

Question 2

What does break-even mean in refinancing?

Accepted Answer

Break-even is the month when cumulative repayment savings exceed the upfront cost of switching. Example: $1,200 in costs and $200 a month saved breaks even after 6 months; every month after that is a net saving. If you sell or refinance again before break-even, switching costs more than it saves.

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 on refinanced loans, which can cover these costs. The calculator defaults to $1,000; actual costs depend on the lenders and your state.

Question 4

Can I refinance with less than 20% equity?

Accepted Answer

Yes, but if your Loan-to-Value Ratio (LVR) is still above 80%, the new lender will usually charge Lenders Mortgage Insurance (LMI) again: the existing policy protects your current lender and does not transfer. Add that premium to the switching costs above; it can push break-even out by years.

Question 5

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

Accepted Answer

Rates change often and vary by lender, loan type and LVR. When live lender data is available, the rate field on this page shows that day's lowest and median advertised variable rate for a live-in loan at 80% LVR, and the lenders page lists each product from the lenders in the Consumer Data Right register. Variable rates usually move within weeks of an RBA cash rate change. Compare comparison rates, which add the lender's standard fees on a $150,000 loan over 25 years.

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