Refinancing makes sense when your current rate is more than 0.5% above the best available rate and your break-even period is under 18 months. GeeVee walks you through the calculation.

The Refinancing Break-Even Calculation

Monthly saving = (Current rate – New rate) x Loan balance / 12
Break-even months = Refinancing costs / Monthly saving

Example: $600k loan, current rate 6.5%, new rate 5.9% = $300/month saving. Refinancing costs $2,000. Break-even = 6.7 months. In this case, refinancing is clearly worthwhile.

When to Refinance in 2026

• Your current rate is above 6.2% on a principal and interest loan
• Your LVR has improved below 80% (you can avoid LMI on the new loan)
• You have held your current loan for more than 2 years (loyalty tax applies)
• Your fixed rate is expiring in the next 3-6 months

When Not to Refinance

• Break-even period is over 24 months
• You are selling within 12 months (costs outweigh savings)
• Your fixed rate has significant break costs
• Your income or employment has changed recently (serviceability risk)

Ask GeeVee: Refinancing Calculator

GeeVee can model your exact refinancing scenario — current rate, new rate, loan balance, costs, break-even — and tell you whether switching makes financial sense right now.

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