Borrowing, comparing and refinancing

Mortgage Switching Calculator

Weigh a lower rate against the cost of switching. See the saving, how long it takes to recover the costs, and the time you could take off.

Cost: Free
Your figures: Stay in your browser
Method: Set out below

Your current loan

Loan balance

Interest rate

% p.a.

Years remaining

years

Monthly fee

$a month

The new loan

Ongoing interest rate

% p.a.

Introductory term

years

Leave at 0 if the new loan has no introductory rate.

Monthly fee

$a month

Switching costs

Typically a $350 discharge fee from your current lender, government fees to discharge and register a mortgage (about $130 to $250 each, depending on the state) and any application fee on the new loan.

Repayment frequency

Used for both loans. Monthly fees are spread across the repayments.

Saving each month

$194.94

Repayments and fees of $3,187.97 against $3,382.91 now. The switching costs are recovered in 6 months.

Interest and fees if you stay: $514,874
Interest, fees and costs if you switch: $457,391
Total saving by switching: $57,482

Keep paying $3,372.91 a month on the new loan and it is repaid 2 years 10 months sooner, with $117,986 less in interest and fees than staying.

Talk to a broker

Estimate only, based on the figures entered and the assumptions listed below. It is not a quote, an offer of credit or personal advice.

Staying against switching

Switching costs are paid upfront and counted with the fees. Keeping your repayment puts the lower rate to work on the principal, so the loan finishes early.

Repayment, time to repay, interest, fees and total cost for staying, switching on the new minimum, and switching while keeping the current repayment
Measure	Stay	Switch, new minimum	Switch, keep repayment
Repayment each month	$3,372.91	$3,187.97	$3,372.91
Time to repay	25 years	25 years	22 years 2 months
Total interest	$511,874	$456,391	$395,888
Fees and switching costs	$3,000	$1,000	$1,000
Total cost	$1,014,874	$957,391	$896,888

Loan balance over time

What you would still owe at the end of each year if you stay, and if you switch but keep paying your current repayment.

Stay
Switch, keep repayment

Show the figures as a table

Loan balance at the end of each year, staying and switching while keeping the current repayment
Point	Stay	Switch, keep repayment
Now	$500,000	$500,000
End of year 1	$491,732	$488,673
End of year 2	$482,911	$476,660
End of year 3	$473,500	$463,920
End of year 4	$463,461	$450,409
End of year 5	$452,749	$436,080
End of year 6	$441,322	$420,884
End of year 7	$429,130	$404,769
End of year 8	$416,123	$387,678
End of year 9	$402,247	$369,554
End of year 10	$387,443	$350,332
End of year 11	$371,648	$329,947
End of year 12	$354,798	$308,329
End of year 13	$336,821	$285,402
End of year 14	$317,642	$261,088
End of year 15	$297,180	$235,302
End of year 16	$275,351	$207,956
End of year 17	$252,061	$178,955
End of year 18	$227,215	$148,199
End of year 19	$200,707	$115,582
End of year 20	$172,426	$80,991
End of year 21	$142,255	$44,307
End of year 22	$110,066	$5,402
End of year 23	$75,725	$0
End of year 24	$39,087
End of year 25	$0

How this calculator works

Three cases are compared: staying where you are, switching and paying the new minimum, and switching but keeping your current repayment so the saving goes to the principal.

The break-even point is how long the lower repayment takes to cover the cost of switching.

Assumptions

Interest is charged at the repayment frequency: the annual rate divided by 12, 26 or 52 each period. A year is taken as 52 weeks or 26 fortnights.
Repayments are principal and interest, made at the end of each period.
Rates stay the same, apart from the end of any introductory rate on the new loan.
Your current repayment is the minimum for the balance, rate and years remaining. Monthly fees are spread evenly across weekly or fortnightly repayments and count towards the saving each period.
Switching costs are paid upfront and are not added to the new loan.
The new loan runs for the same remaining term as the current one.
If the new loan has an introductory rate, its repayment is recalculated at the ongoing rate when that term ends.
Features such as offset accounts and redraw are not taken into account.

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Send through your figures and we will run them against our panel of 45 lenders for a real answer.

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