MORTGAGEPEDIA EXPLAINS

Use the number. Then understand what it means.

Each calculator gives you an estimate. Under each one I’ve written what it can’t see, because a lender’s assessment can land somewhere quite different. Rate matters. Structure can matter more.

Christine’s view

Same borrower. Same property. Different lender policy can produce very different outcomes. Use the number to start the conversation, not to finish it.

Christine Junidar

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Refinance break-even

How long it takes for a lower rate to cover the cost of switching, and what the change does to total interest.

Current loan balance

$50k$2M

Remaining term (current loan)

yrs

1 yr30 yrs

Current rate

1%15%

New rate

1%15%

New loan term

yrs

1 yr30 yrs

Enter the figures from your lender's fee schedule or payout statement. Costs vary by lender and loan.

Discharge fee (current lender)

New loan switching costs

Current loan monthly fee

New loan monthly fee

Net monthly saving

$169

Upfront switching costs$0

Break-evenEnter your costs

Current repayment$3,123

New repayment$2,955

Repayment change (before fees)Down $169/mo

Total interest, stay 25 yrs$486,997

Total interest, refinance 25 yrs$436,386

Assumes both rates stay constant for the period compared. Actual variable rates change over time.

An estimate only, based on the figures you entered and the assumptions listed beside the result. It is not a borrowing limit, a quote, or an offer of credit. A lender will assess your application against its own criteria. · Individual results vary. Any figure shown reflects one set of circumstances at one point in time and is not a prediction of what you will be approved for.

What this estimate does not tell you

It can't see every cost of switching. A break cost on a fixed-rate loan, Lenders Mortgage Insurance if your equity is under 20%, and state duty, which isn't always charged, are not inputs. Ask both lenders.
It assumes both rates stay the same for the whole comparison. A variable rate moves, and a rate that steps up after an introductory period isn't modelled.
A longer new term lowers the repayment but can raise total interest. The tool flags when you have extended the term; compare total interest, not just the monthly figure.
It prices the rate and the fees, not the loan. Offset, redraw, the features you would lose or gain, and whether the new lender's valuation and assessment of your income would approve the switch all sit outside this number.

Why this matters

“A lower rate is one side of a switch. I look at what it costs to leave, what it costs to arrive, and what you give up in flexibility.”

Want me to test this against actual lender policy? Send me your scenario.

Test this against lender policy

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Repayments

What a principal-and-interest loan repays each month, fortnight and week at the rate and term you enter.

Loan amount

$50k$2M

Interest rate

1%15%

Loan term

5 yrs30 yrs

Monthly repayment

$3,160

Total repayment$1,137,722

Total interest paid$637,722

Weekly

$729

Fortnightly

$1,459

What this estimate does not tell you

It assumes one rate for the whole term and principal-and-interest repayments. A variable rate moves, a fixed rate ends, and an interest-only period changes the repayment. None of that is modelled.
The weekly and fortnightly figures are the monthly repayment spread across the year. They are not your lender's repayment schedule, and they don't show any benefit from paying more often.
Fees, insurance and Lenders Mortgage Insurance (LMI) are left out, and they change what a loan really costs.
An affordable repayment at today's rate is not the test a lender applies. A lender also checks whether you could afford the loan at a higher assessment rate, after living expenses and other commitments, so this number can't tell you whether a lender will approve it.

Why this matters

“The repayment is the easy part. What the loan lets you do next is the harder question.”

Want me to test this against actual lender policy? Send me your scenario.

Test this against lender policy

These are general tools. They use the figures you enter and the assumptions listed beside each result, and a lender assesses every application against its own policy.

General information only. It does not take your objectives, financial situation or needs into account. Lending is subject to lender assessment and criteria. This is not a quote or an offer of credit.