Home loan comparison

Lender

Variable
More details

loans.com.au – Variable Home Loan (LVR < 90%)

    Variable
    More details

    HSBC – Home Value Home Loan (Principal and Interest) (LVR < 80%)

      Fixed
      More details

      Newcastle Permanent – Fixed Rate Home Loan (Principal and Interest) 1 Year

        Variable
        More details

        Beyond Bank – Purple Basic Variable Home Loan (New Customer) (LVR 60%-80%)

          Variable
          More details

          Athena – Straight Up Owner Occupied - Celebrate (LVR 50%-60%) (Principal and Interest)

            Fixed
            More details

            IMB Bank – Fixed Rate Home Loan (Principal and Interest) 1 Year (LVR ≤ 80%)

              Variable
              More details

              Liberty Financial – Liberty Low Rate Home Loan (LVR < 95%)

                Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of July 25, 2024. View disclaimer.

                Powered by:
                Powered by savings image Savings.com.au
                Savings.com.au Pty Ltd ACN 161 358 363 | Australian Financial Services Licence and Australian Credit Licence 515843

                Mortgage Switching Calculator

                Calculations are estimates and provided for illustrative purposes only. They do not take into account your personal circumstances, any product features, applicable fees, or charges which may be payable. Calculations are not an offer of credit, a quote or loan approval. Applications to lenders are subject to lending criteria.

                Time
                All months are assumed to be of equal length. In reality, many home loans accrue on a daily basis leading to a varying number of days' interest dependent on the number of days in the particular month. One year is assumed to contain exactly 52 weeks or 26 fortnights.

                Interest Rate
                The introductory interest rate is considered to be the same for the duration of the introductory period you specify. The ongoing interest rate is considered to be the same for the remaining duration of the loan.

                Fees
                Up-front fees are added to the value of the loan at the start of the term. Regular fees are charged at the end of each monthly repayment period, prior to the repayment being made. If the regular fee frequency is not monthly, then an equivalent fee for a monthly period is used.

                Repayment Amounts
                Repayments are calculated so that the loan is paid off at the end of the specified term remaining. Repayments are rounded to the nearest cent. Repayments are calculated assuming a principal and interest repayment over the loan term. Repayments are assumed to be on a monthly basis and incorporating the round up figure.

                Results Graph
                The results shows the estimated savings resulting from switching loans if you make the minimum repayments required under the existing loan to both loans. The estimated savings are the amount by which the amount outstanding on the new loan is less than what would have been owed on the existing loan at the same point in time. An adjustment is made in the last period to allow for the fact that a lower repayment may be required for the loan that is being repaid.

                Mortgage Switching Calculator

                Mortgage switching serves many purposes, such as gaining lower interest rates or better loan features. Thankfully, there are tools such as our Mortgage Switching calculator to help you see for yourself. Mortgage switching, more commonly referred to as refinancing, is the process of changing your current home loan to another. This can either be changing the loan product but staying with the same lender or changing lenders all together.

                To determine if you are eligible you can use our Income Tax Calculator and Credit Score Calculator.

                Why should I switch my mortgage?

                If you’re deciding whether or not you want to switch mortgages, there are many benefits that should be considered when you make a decision.

                First and foremost, refinancing to another loan product or lender could save you thousands! As market rates are constantly changing, you may be able to achieve lower interest rates by refinancing. You can use our Home Loan Comparison Calculator to see how much you could save. Other benefits include:

                • Lower repayments as a result of lower interest rates
                • Consolidate your debts (e.g. car loans, holiday loans, and credit cards)
                • Increase your borrowing or extend your loan term
                • Potentially save extra cash with lower fees and charges. Some loans carry annual or monthly fees which can be avoided if you switch lenders
                • Access new features that you don’t have on your current loan, such as an offset account or redraw facility

                How long does it take to refinance a home loan?

                When switching mortgages, the process is similar to that of applying for your original home loan. This means that the average time for refinancing is roughly 4-8 weeks. However, this time frame can vary, depending on the mortgage provider and your situation.

                It's also worth noting that, as you are already the owner of the property, it's generally a more relaxed process in the event that you encounter any delays or challenges and need to delay your settlement.

                This process can be done online with many lenders, or on the phone or through a broker. Some factors that may influence the speed of your refinance include:

                • How long it takes you to provide your documents (the faster the better)
                • The amount of information on your application (e.g. providing more than ample supporting paperwork)
                • How fast your application is reviewed by the lender
                • Your serviceability as a borrower (e.g. an applicant with strong credit rating may get a faster turnaround)

                What fees are involved when switching mortgages?

                While switching mortgages may help your savings in the long run, it is worth being aware of the costs associated with the process. These costs include:

                • Discharge fee: You should look at your current loan agreement and find out if your lender has a discharge fee for closing your home loan. There also may be government charges to end the loan contract.
                • Settlement fee and application fees: As you are getting a new loan product, it’s likely you will incur upfront costs for the settlement and application process.
                • Breaking a fixed rate loan fee: This fee will be charged by the lender when you exit your fixed rate loan before fulfilling the agreed terms. This amount will be determined based on how much the lender stands to lose from you exiting the contract.
                • Valuation fees: Valuation fees will be charged in the situation that you need to get your property valued by the new lender.
                • Mortgage insurance costs: These will often be charged by the lender if the amount you owe on your property after refinancing is more than 80% of the property's value. Mortgage insurance costs may come in the form of LMI or another type of risk fee if LMI isn’t suitable.

                To get a better understanding of how much these costs may set you back, it is worth utilising online tools such as our Lender's Mortgage Insurance Calculator and our Refinancing Costs Calculator.

                Will I always save by switching?

                While switching your home loan could save you money, it’s important to look at the full picture and make sure that the costs don’t outweigh the savings. Important things to consider include:

                • You may have to pay lenders mortgage insurance a second time.
                • The savings on your interest rate or remaining loan amount may not be significant enough to outweigh the costs you’ll incur.
                • Ask your lender for a lower rate before switching mortgages. Your lender doesn’t want to lose your business, so they might be able to offer you a lower rate, which would save you the hassle and costs of refinancing.

                How often should I refinance?

                There are no rules about how often you can refinance your home. However, right now Australians are refinancing far more often than they used to. Currently the average duration of a home loan in Australia is 4-5 years, meaning, home owners are, on average, switching their mortgages within a 4-5 year period.

                It’s recommended you regularly review your financial commitments as your circumstances change (such as switching jobs, having kids, etc.), including your home loan. More specifically, good times to consider refinancing include:

                • When coming to the end of a fixed-term loan. Fixed-term loans usually have a lower interest rate during the fixed period and switch to a higher variable rate thereafter. Refinancing at this point can be a good way of keeping your monthly repayments low.
                • Refinancing based on reductions in the cash rate and market fluctuations. If your current loan doesn’t have a competitive rate, it’s worth utilising these cuts to get a better deal on your home loan.

                It's worth noting that refinancing is not the best option for everyone and it's important to do your research before making a switch.

                Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to made on variables as selected and input by the user. All products will list the LVR with the product and rate which are clearly published on the Product Provider’s web site. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. Rates correct as of 9 July 2024.

                ^The addition of offset sub-account means your comparison rate will change.

                Powered by:
                Powered by savings image Savings.com.au
                Savings.com.au Pty Ltd ACN 161 358 363 | Australian Financial Services Licence and Australian Credit Licence 515843