Refinancing Savings Calculator

Should you refinance your home loan?

Refinancing is one of the most powerful financial moves an Australian homeowner can make. On a $600,000 loan, the difference between a rate of 6.50% and 5.99% is over $176 per month — and more than $52,000 over the remaining loan term. Yet millions of Australian borrowers stay with their current lender out of habit or because they assume the switching process is too difficult.

This calculator helps you answer three key questions:

1. How much would I save each month with a lower rate?
2. How long would it take to recoup the upfront costs of refinancing?
3. Is the total saving worth the effort?

How to use this refinancing calculator

1. Enter your current loan balance — not the original loan amount, but what you still owe.
2. Enter your current interest rate — check your last loan statement or online banking.
3. Enter the term remaining — years left on your current loan.
4. Enter the new rate you’ve been quoted — or use a comparison rate from our broker to find current competitive rates.
5. Add upfront costs — discharge fee, application fee, settlement fee. Typical total: $800–$1,500.
6. Add any cashback — many lenders offer $2,000–$4,000 cashback to switch.

The calculator will instantly show your monthly saving, total interest saving over the remaining term, and the break-even point in months.

What counts as a “good” reason to refinance?

Your current rate is more than 0.5% above market

If your rate has a “6” or “7” at the front and you haven’t refinanced in the last two years, there’s a very good chance you’re paying more than you need to. The average mortgage rate for new customers in Australia in 2025 is significantly lower than the average rate for existing customers — lenders routinely offer their best deals to attract new business.

Your fixed rate period is ending

When a fixed rate period expires, your loan typically “reverts” to the lender’s standard variable rate — which is almost always higher than the rate you can negotiate by refinancing. Planning your refinance 2–3 months before the fixed period ends is ideal timing.

Your property has increased in value

A higher property value means a lower LVR (loan-to-value ratio), which gives you access to lower rate tiers. If your LVR has dropped from 80% to 70% due to price growth and repayments, you may qualify for a significantly better rate.

Your income or credit profile has improved

If you’ve had a pay rise, paid off other debts, or built a stronger savings history since your original loan, lenders may view you as a lower-risk borrower and offer a better rate.

The true cost of staying with your current lender

Many borrowers focus on the cost of refinancing rather than the ongoing cost of not refinancing. On a $500,000 loan at 6.50% versus 5.99%, the cost of NOT refinancing over 5 years is approximately $10,500 in extra interest. The upfront costs of refinancing might total $1,500. The numbers typically favour switching.

Refinancing with Rovo Finance, what to expect

A Rovo broker will:

• Search hundreds of loan products to find the best rate for your situation
• Handle the paperwork and liaise with both your current and new lender
• Advise on whether cashback deals genuinely stack up once fees are accounted for
• Negotiate your rate, many lenders will sharpen their offer when a broker is involved
• Ensure your new loan structure suits your goals (offset, redraw, fixed/variable split)

The service is free, brokers are paid a commission by the lender you choose, with no obligation to proceed.