 Refinancing and cashback calculatorhttps://ratepool.com.au/calculators/refinancing Explore another scenario |
Refinancing and cashback calculatorhttps://ratepool.com.au/calculators/refinancing Explore another scenario |
Would switching home loans leave you better off? Compare repayments, fees, cashback and the debt you would still owe.
Example figures, not loan offers. All repayments are monthly.
$11,422.10less by switching
Includes entered fees, cashback that is no longer at risk, and the difference in remaining debt.
Switching breaks even after 5 months and stays at least as cheap through the 25-year model.
Source: Ratepool calculation from your inputs. Entered fees and eligible cashback included. Constant rates and monthly repayments; assumptions below.
Monthly repayments above exclude annual fees. This is an estimate, not a lender quote.
Each figure includes cash paid and debt still owing at that date. Positive savings favour switching.
| Time after switching | Difference | Debt if staying | Debt if switching |
|---|---|---|---|
| 1 year | $1,499.04 less | $491,744.45 | $491,099.77 |
| 3 years | $6,482.13 less | $473,537.66 | $471,618.61 |
| 5 years | $11,422.10 less | $452,810.52 | $449,660.23 |
| 10 years | $23,340.28 less | $387,556.09 | $381,759.41 |
Cash paid plus remaining debt, minus the original loan balance. This isolates interest, fees and retained cashback without mistaking slower principal repayments for savings.
| Over 5 years | Stay | Switch |
|---|---|---|
| Loan repayments paid | $202,562.40 | $193,290.60 |
| Switching costs paid in cash | $0.00 | $1,000.00 |
| Ongoing fees paid | $0.00 | $0.00 |
| Less cashback retained | $0.00 | $0.00 |
| Net cash paid | $202,562.40 | $194,290.60 |
| Remaining debt | $452,810.52 | $449,660.23 |
| Cost excluding principal | $155,372.92 | $143,950.83 |
Through the end of both loan terms, switching costs $45,357.93 less, under the same assumptions. Neither scenario includes further refinancing.
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Both loans refinance the same original balance, with no cash-out or extra borrowing other than any financed switching costs. Rates stay constant. We divide annual interest by 12, compound monthly and pay at the end of each month. Regular payments round to cents and the final payment clears the debt. Lenders may use daily interest and different rounding.
Discharge, application, valuation, legal, settlement and other switching costs are paid today or added to the new loan, as selected. Annual fees are divided by 12 and paid separately each month while that loan has a balance. Financed costs are counted once, through debt and repayments.
Cashback is recorded in the entered payment month. While it may still be repayable under the entered clawback period, an equal liability offsets it. It improves the comparison only after the minimum holding period has ended. Check the lender’s exact eligibility, payment and repayment conditions.
At each month, we compare cumulative cash paid plus debt still owed, less the original balance. Break-even includes the debt difference. The model runs for at least ten years and through the end of both loans. A zero initial difference alone is not a break-even saving.
Figures are nominal dollars, with no inflation, investment return or tax effects. Offsets, future rate changes, introductory-rate expiry and costs you have not entered are excluded. Enter an ongoing rate if an introductory rate will expire. This is not an eligibility or affordability assessment. Method: monthly net cost, version 2.
A longer term can lower each payment while leaving more debt outstanding. Compare costs over the same period and check what remains owing on each loan.
Moneysmart: switching home loansUse the amount you expect to qualify for and when it would be paid. Check exclusions and any requirement to repay the reward if you leave. A cashback offer can be outweighed by higher interest and fees.
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