How to use this calculator
- Enter your current balance, rate and the years left.
- Enter the new rate, the new term and the switching fees.
- Choose whether to pay the fees upfront or add them to the loan.
Frequently asked questions
Is it worth remortgaging?
When the saving repays the switching fees well before you move or switch again. In the example ($250,000 at 5.5% moved to 4.5% with $2,000 of fees), you save $141 a month and recover the fees in 1 year 3 months.
Should I extend the term when I remortgage?
It lowers the payment but usually raises the total cost. Stretching the example to 30 years gives a lifetime saving of -$26,476, against $35,266 on the same term.
Should fees be added to the loan?
Adding them avoids paying upfront, but you then pay interest on the fees for the whole term. Paying them upfront costs less overall.
What about early repayment charges?
If your current deal charges a fee for leaving early, add it to the switching fees so the comparison is fair.