Refinance

Open Refinance from the portfolio's menu and choose the loan in Current loan. Compare a refinance on a loan or on the Loans page opens it with that loan chosen.

Current loan terms shows the loan as recorded on 1 July, where the comparison starts.

• Recorded balance is the lender's balance before any offset cash.
• Scheduled payment is the interest and principal due each period.
• Matures is the date the contract ends and any balance left is due.

Balance if nothing changes draws the balances you recorded, then carries them on the current terms to maturity. When your fixed rate ends reads this comparison for a loan coming off a fixed rate.

Proposed terms starts with the loan's own rate and the whole years left. Change what the new lender offers.

• New interest rate, and New loan term in years, from 1 to 40.
• Repayment type: Principal and interest, or Interest only. With Interest only, Principal and interest from is the day repayments switch. Leave it blank to stay interest only to the end of the term.
• Offset on the proposed loan shows when the current loan has an offset account. Choose Keep the offset or No offset.

Costs and tax holds what the switch costs.

• Total refinance costs and any Cashback.
• With costs entered, How are costs paid? chooses Pay from cash or Add to the new loan. Deductible borrowing costs takes the part that counts as borrowing expenses Borrowing expenses Costs of taking out a loan for a rental, deducted over five years or the loan term, whichever is shorter. .
• Remaining deductible costs from old loan takes the old loan's borrowing expenses not yet deducted.

Projection basis reads 10 years, 3% earnings growth and 3% CPI. It sets how many years the comparison runs, from 1 to 40, and how fast wages and prices rise, which set the super contribution caps and thresholds each year. Cash accounts chooses the account each legal owner pays from. Left at As in Cash routing, it follows Cash routing.

Select Compare loans. A value out of range is listed under Check the refinance proposal, such as Loan term must be a whole number between 1 and 40. After you change the proposal, the results stay with a note, Proposal changed, until you compare again.

Even with nothing changed, the result can move. The new loan's payment is worked out afresh to clear the balance by the end of the term. For the Armadale loan at 6.09% over 23 years, it is $1,520 a month, not $1,560, and the page reads about $40 a month lower and $954 behind.

Refinance outcome adds up three differences over the years compared. A positive amount favours the proposed loan.

• Cash difference: the current loan's repayments less the proposed loan's, with the cash the switch moves on its first day.
• Debt difference: what the current loan still owes at the end less what the proposed loan owes. The lower payment repays less principal, so the new loan owes $4,493 more after ten years.
• Tax and HELP difference: what the new loan does to the estimated income tax and HELP. Armadale is rented, so its interest is deducted. The new loan charges less interest, so the deduction is smaller and the tax is $3,184 more. It shows only when tax changes.
• Advantage after tax and HELP: the three added together. Where tax does not change, it reads Advantage.

The answer reads Switching lowers repayments by about $94 a month and comes out $2,391 ahead over 10 years after tax and HELP. The $1,200 cost is recovered by 1 Dec 2028. Where maturity moves, it says by how many months.

Advantage over time draws the advantage from the first day to the last, before tax and after tax and HELP.

What changes sets the proposed loan against the current one at the start and over year one.

• Cash impact at the start: the cashback less the costs paid from cash.
• Average monthly payment change: $1,466 a month on the new loan less $1,560 on the current one.
• First-year interest change and First-year principal change: $12,699 less $13,585 of interest, and $4,894 less $5,135 of principal.
• Break-even: the first date from which the new loan stays level or ahead to the end. On 1 Nov 2028 the advantage is -$5, and on 1 Dec 2028 it is $63. A date in the past reads Broke even. A new loan that never gets ahead reads Not reached.

Loan comparison draws the balance under each loan. Interest over the comparison gives each loan's total: $118,677 on the current loan and $111,902 on the proposed one.

Current and proposed loan sets the two side by side: rate, repayment type, payment frequency, maturity, offset, opening balance, first-year payment, interest and principal, interest over the comparison, the balance at the end and the payoff date.

After one year the $1,200 cost is not yet paid back. Advantage by legal owner shows for a loan with more than one owner, split by each owner's share of the repayments and the debt.

Download PDF saves the comparison with its basis. A Business account can also send it to the client.

• A loan recorded only from after 1 July shows A balance on 1 July 2026 is required. Record earlier balance opens the form for the lender's balance on or before that day.
• With no terms in force on 1 July, or two terms that overlap, the page shows Active loan terms are required. Edit loan opens the loan.
• A proposal that keeps the loan's own terms and moves nothing reads The proposal keeps the loan's own terms, so nothing changes over 10 years. It has no PDF.
• If the comparison fails, select Try again.

Loans explains how to record a balance and its terms.