Mozo guides

Give yourself an instant pay rise by refinancing your home loan 

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Thanks to the Reserve Bank of Australia's unprecedented rate hike cycle, the cost of financing a home loan has surged.

If you haven't taken a look at your mortgage in a hot minute, now's a good time 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.

So how much could you potentially save?

Loan details

Rate change

Repayment change if rates go up

Are you an owner occupier?

Lenders compete for your business the most, although many variable rate offers barely drift below the 6.00% p.a. mark these days.

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 6.50%, on a $500,000 home loan with 20 years left. According to the Mozo home loan repayments calculator, your current monthly repayments would be $3,582 and the interest you’d pay over the remainder of the loan would be $359,717.

But if you are savvy and switch to a low rate home loan offered exclusively to owner occupiers  with, for example, a 4.89% variable interest rate (the current best in Mozo’s database), your repayments would drop down to $3,269 each month and the interest you’d pay over the remainder of the loan would be $284,673.

  • Monthly pay rise = $313
  • Pay rise over 20 years = $75,044

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 7.00%. This means your monthly repayments would currently be $3,876 and the interest you’d pay over the remainder of the loan would be $430,359.

But if you made the switch to, for example, a loan with a 5.15% variable interest rate (the current best in Mozo’s database), your monthly repayments would drop down to $3,341 and the interest you’d pay over the remainder of the loan would be $301,924.

  • Monthly pay rise = $535
  • Pay rise over 20 years = $128,435

Pay day come early

As you can see, the potential money up for grabs by making the home loan switch is big. Considering savings accounts and term deposits have risen too, this could be considerable money back in your pocket for a future rainy day. Vive lé 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

Mozo may receive payment if you click the products below. We don’t compare the entire market, but you can search our database of 471 home loans.
Last updated 24 July 2024 Important disclosures and comparison rate warning*
  • Basic Home Loan

    Owner Occupier, LVR<60%, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    6.14% p.a. variable
    6.16% p.a.

    Enjoy a low rate home loan with $0 application fee and $0 ongoing fees. Flexibility to split your loan and set different repayment types. Fee free redraw from your loan using online banking. Flexible ways to repay. 40% Deposit required.

  • Discount Great Rate Home Loan

    Owner Occupier, Principal & Interest, LVR<80%, over $150k

    interest rate
    comparison rate
    Initial monthly repayment
    6.04% p.a. variable
    6.06% p.a.

    An easy to use Home Loan with no establishment fee and no monthly or annual fees. Minimum deposit of 20% is required. Mozo Experts Choice Awards - Investor Home Loan Award 2024^.

  • Fixed Rate

    Owner Occupier, Principal & Interest, <80% LVR

    interest rate
    comparison rate
    Initial monthly repayment
    6.54% p.a.
    fixed 2 years
    7.10% p.a.

    Enjoy up to $3000 cashback for eligible first home buyers and $2000 cashback for refinancers on eligible home loans with the ANZ Fixed Rate Home Loan. Get the security of repayment certainty with a competitive locked in rate. No ongoing fees to pay. Offset account on 1-year fixed loans ($10/month fee applies). Interest-only payments allowed.

Evlin DuBose
Evlin DuBose
Senior Money Writer

Evlin, RG146 Generic Knowledge certified and a UTS Communications graduate, is a leading voice in finance news. As Mozo's go-to writer for RBA and interest rates, her work regularly features in Google's Top Stories and major publications like

* 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. You can change the loan amount and term in the input boxes at the top of this table. 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

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

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