Give yourself an instant pay rise by refinancing your home loan

With the Reserve Bank of Australia hiking interest rates for the first time in 11 years, the cost of financing a home loan has surged. So if you haven't taken a look at your mortgage in a hot minute, now's as good as time as any to take things into your own hands and make payday come early by switching to a better home loan deal.
Refinancing to a home loan with a lower interest rate will not only lower the interest you pay, thus freeing up extra cash, but will also reduce your home loan repayments, making budgeting for the rising cost of living a much easier feat.
But how much could you potentially save?
Loan details
Repayment change if rates go up
Are you an owner occupier?
Good news! Lenders are vying for your business, with many variable rate offers still drifting below the 3.50% p.a. mark.
RELATED: Home loan rate check: How do ANZ, CBA, NAB and Westpac compare?
To give you an idea of how much switching to a lower rate deal could save you, here’s a quick comparison:
Say your current rate sits at 5.30%, on a $500,000 home loan with 20 years left. According to the Mozo home loan repayments calculator, your current monthly repayments would be $3,383 and the interest you’d pay over the remainder of the loan would be $311,969.
But if you are savvy and switch to a low rate home loan offered exclusively to owner occupiers with, for example, a 3.23% variable interest rate (the current average in Mozo’s database), your repayments would drop down to $2,831 each month and the interest you’d pay over the remainder of the loan would be $179,418.
- Monthly pay rise = $552
- Pay rise over 20 years = $132,551
Are you an investor?
While it’s true investors often get saddled with higher interest rates than owner-occupiers, it doesn’t mean there aren’t plenty of ways to cut the costs of your loan.
RELATED: Rental expenses investors can claim on their taxes
For the sake of consistency, let’s use the same example as above of a $500,000 home loan paid back over 20 years, making both principal and interest repayments.
Say your current home loan rate is 5.65%. This means your monthly repayments would currently be $3,482 and the interest you’d pay over the remainder of the loan would be $335,664.
But if you made the switch to, for example, a loan with a 3.65% variable interest rate (the average in Mozo’s database), your monthly repayments would drop down to $2,938 and the interest you’d pay over the remainder of the loan would be $205,237.
- Monthly pay rise = $544
- Pay rise over 20 years = $130,427
Pay day come early
As you can see, the potential money up for grabs by making the home loan switch is big, ranging from $132,000 for owner occupiers to $130,000 for investors.
Considering savings accounts and term deposits are on the rise too, this could be considerable money back in your pocket for a future rainy day. Vive le refinance!
Punch in your details into our home loan comparison calculator to see how much you could save by making the switch.
Compare refinance home loans - last updated 2 July 2022
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Featured Product
Neat Home Loan
Owner Occupier, Principal & Interest, LVR <60%
interest rate
comparison rate
Initial monthly repayment2.64% p.a. variable2.65% p.a.Low variable rate. Ideal for buyers or investors. No annual fees to pay. Unlimited additional repayments. Free redraw facility available. Fast digital application. 40% deposit required.
CompareCompareNeat Home Loan
Low variable rate. Ideal for buyers or investors. No annual fees to pay. Unlimited additional repayments. Free redraw facility available. Fast digital application. 40% deposit required.
- interest rate
- 2.64% p.a. variable
- comparison rate
- 2.65% p.a.
- Ongoing fees
- $0.00
- Discharge Fee
- $300.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- no
- Maximum loan to value ratio
- 60.00%
- minimum borrowing amount
- $80,000
- maximum borrowing amount
- $5,000,000
- type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special Offers
Read our Mozo Review to learn more about the Neat Home Loan
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Smart Booster Home Loan
2 Year Discounted Variable Rate, Owner Occupier, Principal & Interest, <80% LVR
interest rate
comparison rate
Initial monthly repayment2.60% p.a.variable for 24 months and then 3.00% p.a. variable2.96% p.a.New super low introductory rate home loan for two years. Min 20% deposit. No monthly or ongoing fees. Fast settlement times. Mozo award-winning online lender. Friendly, local Australian based team.
CompareCompareSmart Booster Home Loan
New super low introductory rate home loan for two years. Min 20% deposit. No monthly or ongoing fees. Fast settlement times. Mozo award-winning online lender. Friendly, local Australian based team.
- interest rate
- 2.60% p.a.variable for 24 months and then 3.00% p.a. variable
- comparison rate
- 2.96% p.a.
- Ongoing fees
- $0.00
- Discharge Fee
- $0.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- Optional - with 0.10% additional interest
- Maximum loan to value ratio
- 80.00%
- minimum borrowing amount
- $50,000
- maximum borrowing amount
- $1,000,000
- type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special Offers
Read our Mozo Review to learn more about the Smart Booster Home Loan
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Unloan Variable
Owner Occupier, Refinance Only
interest rate
comparison rate
Initial monthly repayment2.64% p.a. variable2.56% p.a.For refinancers only. Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply in as little as 10 minutes.
CompareCompareUnloan Variable
For refinancers only. Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply in as little as 10 minutes.
- interest rate
- 2.64% p.a. variable
- comparison rate
- 2.56% p.a.
- Ongoing fees
- -
- Discharge Fee
- $0.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- no
- Maximum loan to value ratio
- 80.00%
- minimum borrowing amount
- $10,000
- maximum borrowing amount
- $3,000,000
- type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special Offers
Read our Mozo Review to learn more about the Unloan Variable
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Variable Home Loan
Owner Occupier, Principal & Interest, LVR <60%
interest rate
comparison rate
Initial monthly repayment2.64% p.a. variable2.66% p.a.Purchase and Refinance. Yard’s low-rate variable special home loan is packed with all features – unlimited additional repayments, free redraw, optional 100% offset account. Enjoy a simple online application.
CompareCompareVariable Home Loan
Purchase and Refinance. Yard’s low-rate variable special home loan is packed with all features – unlimited additional repayments, free redraw, optional 100% offset account. Enjoy a simple online application.
- interest rate
- 2.64% p.a. variable
- comparison rate
- 2.66% p.a.
- Ongoing fees
- $0.00
- Discharge Fee
- $500.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- Optional - $10 per month
- Maximum loan to value ratio
- 60.00%
- minimum borrowing amount
- $150,000
- maximum borrowing amount
- $1,000,000
- type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special Offers
Read our Mozo Review to learn more about the Variable Home Loan
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Mozo experts choice awards won:
- Low Cost Home Loan - 2022
Variable Rate Home Loan
Owner Occupier, Principal & Interest, LVR <80%
interest rate
comparison rate
Initial monthly repayment2.59% p.a. variable2.49% p.a.$5000 refinance cashback. Owner-occupier refinancers only living in NSW/VIC/SA metro and inner regional areas. Receive up to an additional 0.15% off your rate as you pay off the loan. Receive bonus payments up to $2,500. T&Cs apply. Mozo Experts Choice Award winner for 2022^.
CompareCompareVariable Rate Home Loan
$5000 refinance cashback. Owner-occupier refinancers only living in NSW/VIC/SA metro and inner regional areas. Receive up to an additional 0.15% off your rate as you pay off the loan. Receive bonus payments up to $2,500. T&Cs apply. Mozo Experts Choice Award winner for 2022^.
- interest rate
- 2.59% p.a. variable
- comparison rate
- 2.49% p.a.
- Ongoing fees
- $0.00
- Discharge Fee
- $0.00
- Extra repayments
- yes - free
- Redraw facility
- no
- Offset account
- no
- Maximum loan to value ratio
- 80.00%
- minimum borrowing amount
- $20,000
- maximum borrowing amount
- $2,000,000
- type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Fortnightly, Monthly
- Special Offers
- Receive $5000 cashback for Owner Occupier Refinancers only in eligible areas only.
Read our Mozo Review to learn more about the Variable Rate Home Loan
* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.
** Initial monthly repayment figures are estimates only, based on the advertised rate, loan amount and term entered. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.
^See information about the Mozo Experts Choice Home Loan Awards
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