Refinance hub
For Australian homeowners
Refinance home loan Australia — compare savings, break-even, and the term reset trap
Most refinance calculators only show a lower monthly repayment — and miss the trap where a lender quietly resets you to a fresh 30-year term.
This hub stacks break-even maths, term-for-term vs reset comparison, and an indicative loyalty-tax band in one playground, with plain-English guides on switching costs and retention calls.
General information only. Confirm break costs, comparison rates, and cashback clawbacks with your broker before you apply.
Refinance hub
Refinance playground — savings, break-even, and the term reset trap
Model your current loan, a term-for-term refinance at a lower rate, and what happens if the lender resets you to a fresh 30-year term — plus an indicative loyalty-tax band. Illustration only; confirm break costs and comparison rates before you apply.
Term-for-term monthly saving
$193/mo
Break-even on $3,500 switching costs: ~19 months. Five-year saving: $11,601.
Term reset trap
$201,140
Extra lifetime interest if you accept a fresh 30-year term instead of keeping your remaining 22 years — even at the lower rate.
Lower monthly if reset: $488/mo vs term-for-term.
Loyalty tax check
Indicative band if your rate moved toward new-customer pricing: 5.85% – 6.20% ($95 – $225/mo). Not an offer — read the loyalty tax guide.
| Scenario | Monthly | Total interest |
|---|---|---|
| Current loan | $4,118 | $507,036 |
| Term-for-term refinance | $3,924 | $455,994 |
| Reset to 30 years | $3,436 | $657,133 |
Comparison
Hover a bar for emphasis — values are shown on the right.
Comparison
Hover a bar for emphasis — values are shown on the right.
Cumulative savings (60 months)
If the monthly difference stayed steady, saved cash flow stacks roughly along this slope — before tax, offset use, or price changes.
≈ $12k cumulative over 60 months (illustrative)
General information only. These calculators provide estimates based on the numbers you enter. They do not constitute credit advice, take your full situation into account, or replace a lender's assessment. Fees, eligibility, and actual offers vary. Speak with a broker for guidance tailored to you.
General information only — not personal credit advice. Rates, fees, break costs, comparison rates, and cashback clawbacks vary by lender. Confirm term-for-term pricing before signing. References: ASIC Moneysmart — refinancing, RBA cash rate decisions. Call 0400 77 77 55 or send an enquiry for a 15-minute rate review.
Five checks before you refinance
Use the playground above with your real numbers, then read the supporting article for each check.
Break-even
Include discharge fee, new application fee, and valuation in switching costs. If monthly saving is $180 and costs are $3,500, break-even is roughly 20 months — model yours above.
Term-for-term
Ask your broker to price a refinance that keeps your remaining term (e.g. 22 years), not a fresh 30-year loan. That preserves interest saved from years already paid down.
Term reset trap
A lower monthly repayment from resetting to 30 years can add $80k–$150k+ in lifetime interest on a typical Australian loan — even at a better rate.
Loyalty tax
Most existing borrowers pay 0.3%–0.6% above new-customer pricing. A retention call before switching sometimes beats moving lenders — but only if they match properly.
Fixed break costs
This playground does not model fixed-rate break fees. If you are on a fixed loan, confirm break costs with your lender before counting refinance savings.
Articles and tools to read alongside
Plain-English explainers on switching costs, retention calls, and product fit. General information only — not personal credit advice.
- Refinance playgroundModel your balance, rates, switching costs, and the term reset trap in one stacked tool.
- The refinance term reset trapWhy resetting to 30 years can cost $150k+ in extra interest — even at a lower rate.
- Home loan loyalty tax explainedWhy existing borrowers pay more than new customers — and the retention vs refinance framework.
- Five signs you should refinanceWhen the maths, product fit, and timing line up for switching lenders.
- Comparison rate vs interest rateWhat the comparison rate includes — and what it hides when you refinance.
- Refinance savings calculatorDedicated break-even tool with optional property value and LVR.
- Term reset vs term-for-term (standalone)Single-purpose calculator when you only want the reset trap maths.
- Refinance with a brokerFull service page — policy checkpoints, FAQs, and enquiry path.
- 15-minute rate reviewSend your lender, balance, and rate — we benchmark against the live panel.
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