A lower rate is only worth having if it survives the cost of getting there. This works out what switching saves you each month, what it costs upfront, and how long before you are genuinely in front.
Helps you work out: whether switching lenders saves you money after the costs of moving.
This chart shows the balance you'd still owe each year under each loan — the sooner a line reaches $0, the sooner that loan is paid off. Loans with similar rates and terms will sit almost on top of each other.
General advice warning
The results provided by this calculator are estimates only and should not be taken as personal financial advice. The calculations are based on the assumptions you have entered and do not take into account your personal objectives, financial situation or needs. Before making any financial decisions, we recommend you consult with a qualified financial adviser. Financial Elements PTY LTD (Corporate Credit Representative Number 499510) is an Authorised Corporate Credit Representative of BLSSA Pty Ltd (Australian Credit Licence 391237).
Switching costs money before it saves money. The break-even point — how long the monthly saving takes to repay the switching costs — is the number that decides it.
If the costs are recovered inside twelve months and you expect to hold the property longer than that, the case is strong. Check there is no fixed-rate break cost, and that your loan-to-value ratio still clears the new lender's threshold.
Reasonable if you are staying put; marginal if you might sell, subdivide or restructure. Also weigh whether the new loan restarts a 30-year term, because a lower rate over a longer run can still cost more in total.
On rate alone this rarely stacks up. It can still make sense if the move buys you something else — consolidating debt, adding an offset, releasing equity, or getting off a product that no longer fits.
A discharge fee from your current lender, application, valuation and settlement fees at the new one, and the government mortgage registration and discharge fees. If your existing loan is fixed, break costs can be substantial and the lender will quote them on request.
Only if the new loan is above 80% of the property's value on the new lender's valuation. LMI is not transferable between lenders and is generally not refundable, which is a strong argument for getting under 80% before you switch.
By default, usually yes — most new loans are written over 25 or 30 years. You can ask for the remaining term instead. Keeping the term short is often worth more than a small difference in rate.
Each application is recorded as a credit enquiry. One or two are unremarkable; several in a short period can make lenders cautious. It is a good reason to apply once, to the right lender.
Treat a cashback as a one-off reduction in switching costs, not as a reason to choose a loan. A cashback attached to a rate you will hold for five years is easily outweighed by the rate itself.
Bring your current rate, balance and lender. We will price the alternatives, including the fees your existing lender charges to let you go.