Australian Refinance Rebate Calculator
Calculate the true value of Australian mortgage cashback refinance offers ($2,000–$4,000). See break-even with and without rebate, clawback risk over your hold period, ATO tax treatment, and a comparison of eligible lenders. All figures in AUD.
The rebate covers switching costs and reduces your effective break-even point. Enter how long you plan to hold the loan to see the true value of the rebate offer.
| Year | Cumulative Rate Saving | + Rebate | - Switch Costs | Net Benefit |
|---|---|---|---|---|
| Year 1 | A$1,891 | +A$3,000 | −A$1,000 | +A$3,891 |
| Year 2 | A$3,782 | +A$3,000 | −A$1,000 | +A$5,782 |
| Year 3 | A$5,673 | +A$3,000 | −A$1,000 | +A$7,673 |
Typical refinance rebate offers from Australian lenders. Offers change frequently — always verify current offers directly with lenders or through a broker.
| Lender | Typical Rebate | Min Loan | Key Conditions | Eligible? |
|---|---|---|---|---|
| Commonwealth Bank | A$3,000 | A$250,000 | Owner-occupied P&I only | Yes |
| Westpac | A$3,000 | A$250,000 | LVR under 90% | Yes |
| ANZ | A$2,000 | A$250,000 | New to bank | Yes |
| NAB | A$2,000 | A$250,000 | Owner-occupied | Yes |
| Macquarie | A$4,000 | A$150,000 | P&I, under 80% LVR | Yes |
| ING | A$3,000 | A$200,000 | Orange Advantage eligible | Yes |
| Athena | A$2,000 | A$100,000 | Fee-free lender | Yes |
| Unloan (CBA subsidiary) | A$2,000 | A$250,000 | Digital lender | Yes |
How to Use This Australian Refinance Rebate Calculator
Enter your current loan balance, current rate, the new lender's rate, and the cashback rebate being offered. The calculator computes your monthly saving, break-even point with and without the rebate, and the true net value of switching over your planned hold period.
What the Rebate Does for You
- Covers switching costs (typically $500–$1,500 for discharge, legal, and application fees)
- Reduces or eliminates your effective break-even period
- Adds direct value on top of the rate saving — effectively improving your net rate
- For short hold periods, the rebate may provide more value than a marginally lower rate elsewhere
Check the Clawback Risk tab to understand whether you must repay the rebate if you sell or refinance again within 24–36 months. This is the most important risk with cashback mortgage offers.
The Formula
Break-Even (no rebate) = Switching Costs ÷ Monthly Saving
Net Switch Cost = Switching Costs − Rebate Amount
Break-Even (with rebate) = Net Switch Cost ÷ Monthly Saving
Total Saving Over Hold Period = Monthly Saving × Hold Months
True Net Value = Total Saving + Rebate − Switching Costs
Effective Rate Reduction = True Net Value ÷ (Loan Balance × Hold Years) × 100
If Net Switch Cost is zero or negative (the rebate fully covers or exceeds switching costs), the break-even is immediate — you are ahead from day one. In this scenario, any rate saving is pure benefit, making switching highly attractive.
Example
Sophie — Refinancing a $480,000 Loan in Melbourne
Sophie is on a 6.35% variable rate and has been offered 5.89% plus a $3,000 cashback by a new lender. Switching costs are estimated at $1,200.
| Loan Balance | $480,000 |
| Current Rate | 6.35% — $3,180/mo (25yr remaining) |
| New Rate | 5.89% — $3,044/mo |
| Monthly Saving | $136/mo |
| Cashback Rebate | $3,000 |
| Switching Costs | $1,200 |
| Net Switch Cost | $0 (rebate covers $1,200, leaving $1,800 extra) |
| Break-Even | Immediate — Sophie is $1,800 ahead from day one |
| 1-Year Net Benefit | $136 × 12 + $3,000 − $1,200 = $3,432 |
| 3-Year Net Benefit | $136 × 36 + $3,000 − $1,200 = $6,696 |
Sophie confirmed the clawback period is 24 months and she plans to stay at least 5 years, so clawback is not a concern. She switches and captures $6,696 in net benefit over 3 years.