What this compares
It works out your repayment now and at the rate you want to compare, over the same number of years you have left, then sets that against the cost of switching. Break-even is how many months of lower repayments it takes to cover those costs.
Costs people forget
- Discharge fees from your current lender
- Government fees to release the old mortgage and register the new one
- Break costs if you're on a fixed rate, which can be thousands of dollars
- Lenders mortgage insurance if your loan is more than 80% of the property's value
Sometimes your current lender will sharpen your rate without you moving. Our refinancing page and the guide fixed rate ending? 30-day checklist cover what to look at.
Common questions
Does this tell me whether to refinance?
No. It shows the arithmetic for the figures you entered. Whether a different loan suits you depends on your whole situation, including features, fees and lender policy, which a broker looks at with you.
What is break-even?
The number of months of lower repayments it takes to recover the switching costs. If you might sell or switch again before then, the costs may outweigh the saving.
Why compare over the same term?
Restarting a 30-year loan lowers repayments by spreading the debt over more years, which can make a loan look cheaper even when you pay more interest overall. Comparing over the same term shows the effect of the rate.