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Mortgage Refinance Calculator

Compare your mortgage with a new rate, including break fees and cash contributions, and see what switching banks would save.

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A break fee applies if you leave a fixed rate early

Years

More options· New loan length and cash contribution

Years to pay it off

$

From the new lender

Switching saves you

$8,963

Over 2 years, after $1,000 of costs

New monthly payment
$2,923 (now $3,222)
Costs earned back
After 3 months

What this means

The interest you save covers the $1,000 of costs after 3 months. That’s within the 2 years you’d keep the new deal.

Next step

Stay or switch, over 2 years

StaySwitch
Monthly payment$3,222$2,923
Interest$58,967$49,004
Costs, less cashback$0$1,000
Interest and costs$58,967$50,004
Still owed after 2 years$481,651$478,853

Before you switch

  • Banks often pay a cash contribution to switch, but may want it back if you leave within a few years.
  • Switching when your fixed rate ends avoids a break fee.
Assumptions in this estimate
  • Both rates stay the same for the whole period. The saving counts interest and costs only: paying the loan off faster isn’t a cost, as that money becomes your home equity.
  • Interest is worked out monthly.
Spotted a mistake? Tell us

How the calculator works

  1. Your mortgage now: what you owe, the years left and your rate.
  2. The new mortgage: its rate, any break fee and legal costs, and how long it’s fixed for.
  3. Result: what you’d save in interest after costs over the fixed period, your new repayment, and when the costs are earned back.

Example

$500,000 left over 25 years, switching from 6% to 5% with $1,000 of costs:

Stay Switch
Monthly repayment $3,222 $2,923
Interest over 2 years $58,967 $49,004
Costs $0 $1,000
Saving after costs $8,963

The costs are earned back within 3 months.

Before you switch

  • Split your mortgage across fixed terms to spread the risk of rates changing.
  • Keep your repayments the same after refixing at a lower rate, to pay the mortgage off sooner.
  • Compare the whole offer: rate, cash contribution, fees and any clawback.

Last updated

Frequently asked questions

Is switching banks worth it?

When the interest you save covers the costs. On $500,000 at 6%, switching to 5% with $1,000 of costs saves about $9,000 over a 2-year fix, and the costs are earned back within 3 months.

What is a break fee?

A fee for leaving a fixed rate before it ends, to cover the bank’s loss if rates have fallen. Switching when your fixed rate ends avoids it.

What is a cash contribution?

A payment some banks make when you move your mortgage to them. You may have to pay it back if you leave within a few years, so check the terms.

Should I ask my bank to match?

Yes. Banks often offer existing customers a lower rate when they refix, especially with another bank’s offer in hand.