Refinance Calculator
Calculate your potential savings from switching banks or breaking your fixed term, factoring in break fees and new cashbacks
Is It Worth Switching Banks?
Refinancing your mortgage to a lower interest rate can save you thousands of dollars, but it’s rarely as simple as just looking at the headline rate. This calculator helps you weigh your potential interest savings against the real-world costs of breaking your current loan.
It is 100% free to view your results with no mandatory sign-ups, logins, or hidden data capture.
1. The Savings vs. The Costs
- Interest Savings: A lower rate means lower regular payments, or the ability to keep your payments the same and pay off your house years faster.
- Break Fees & Legal Costs: If you break a fixed-term contract early, your current bank will likely charge a break fee. You may also have legal fees to shift the mortgage title to a new lender.
2. The Cashback Equation
- Clawbacks: If you have been with your current bank for less than 3 or 4 years, leaving them might trigger a 'clawback', meaning you have to repay part of the original cashback they gave you.
- New Cash Contributions: The good news? Your new bank wants your business. They will usually offer a brand-new cash contribution that can offset your break fees, cover your lawyer, and often leave you with cash to spare.
Next Step: Let Us Do the Hard Maths
This calculator provides a fantastic starting guide, but break fees change daily based on wholesale interest rates. Send your results to a Home Loan Factory adviser, and we will request your exact break fees from your bank, negotiate a new rate and cashback package, and tell you exactly how much you will actually save.
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