Australia · Refinance

When does switching pay back the fees?

Compare the break-even period with how long you expect to keep the new financing. OwnerCost starts with an editable 36-month planning horizon.

Example with the default inputs. Change any field to recalculate.

Break-even in 3.3 months

Break-even occurs 32.7 months before your stated horizon of 36 months. This compares timing only; it does not show whether switching is right for you.

36 months is the editable OwnerCost planning default, not a lender or regulatory threshold. Replace it with how long you expect to keep this financing before selling or switching again.

Current P&I

$4,473

New P&I

$4,014

Saving / month

$459

Switching costs in Australia

Early termination (exit) fees are banned on home loans taken out from 1 July 2011, with limited exceptions.
Source: ASIC — RG 220 Early termination fees for residential loans; Treasury — Ban exit fees for new home loans
You may still pay a break fee if you are on a fixed-rate loan, a discharge (termination) fee to close the current loan, and an application fee on the new one.
Source: Moneysmart — Switching home loans (updated 29 Jul 2026)
If you have less than 20% equity, you might have to pay lenders mortgage insurance again with the new lender. Ask whether part of the LMI on your current loan can be refunded.
Source: Moneysmart — Switching home loans (updated 29 Jul 2026)

Checked against these sources on 24 September 2026.

What this estimate includes

Current and new payments on today's balance over the same remaining term
The switching costs you enter (fees, penalties, charges)
Break-even months = switching costs ÷ monthly payment saving

What it does not include

Penalties or fees you do not enter — none are calculated for you
Cash-out or extra borrowing
Changing the loan term or amortization
Total interest over the life of either loan
Your horizon: it only positions break-even in time and never changes the break-even figure

How we calculate

Break-even months = switching costs ÷ (current repayment − new repayment). Monthly rate = quoted nominal annual rate ÷ 12. Payment = P·i / (1 − (1 + i)^−n) over n months.

Rules checked against these sources on 24–25 September 2026.