CLIC MONEY / LEARNING CENTRE
Is refinancing worth the cost?
Compare the same remaining term, total switching costs, features and the alternative of improving your current loan.
Compare like with like.
Start with your existing balance and remaining term. If a new loan runs longer, the lower monthly repayment may conceal a greater lifetime interest cost.
Allow for switching costs.
Include discharge, registration, application and any break cost. Check the lender documents for current charges. The calculator uses your estimates; it is not an offer.
Choose a purpose.
Consider what you want the switch to achieve and how long you expect to hold the loan. Discuss your options before proceeding.
For official consumer guidance, visit ASIC Moneysmart: using a mortgage broker ↗.