Remortgage Rate Calculator
Your Refinancing Analysis
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When you look at Remortgage rates are the interest rates applied when you refinance an existing home loan. They reflect the cost of borrowing against your home’s equity and can vary widely between lenders and loan types. As of October2025, Australian homeowners see a mix of fixed and variable offers shaped by the Reserve Bank of Australia’s cash‑rate moves, competition among the big banks, and broader economic trends. Below you’ll find a snapshot of what’s on the market and how to decide which deal suits your situation.
Key Takeaways
- Average 5‑year fixed remortgage rates sit around 5.3%p.a., while variable rates average 5.0%p.a.
- Major lenders (CBA, ANZ, Westpac, NAB, Macquarie) have narrowed their spreads, with the best fixed deals under 5.0% for borrowers with 80% LVR or lower.
- Cash‑out remortgages add a premium of 0.3‑0.5% compared to rate‑only refinancing.
- Guard against hidden fees: establishment, valuation, and early‑exit charges can add 0.5‑1.0% to your effective cost.
- Use a comparison portal or broker to lock in the best rate before the RBA’s next cash‑rate decision, expected around early 2026.
Understanding Remortgage Rates
A mortgage is a loan secured against residential property. When you refinance, you replace your existing loan with a new one-this is called a remortgage. The key figure you’ll see quoted is the interest rate the percentage of the loan amount charged as interest each year. Interest rates come in two main flavors:
- Fixed‑rate mortgage locks the interest for a set term (usually 1‑5 years).
- Variable‑rate mortgage moves with the market, typically tracking the RBA cash rate.
Both types can be combined-many borrowers choose a fixed rate for part of the loan and a variable rate for the remainder.
How Rates Are Set
The Reserve Bank of Australia (RBA) Australia’s central bank that influences monetary policy and sets the official cash rate decides the baseline cost of money. When the RBA raises or cuts its cash rate, lenders adjust their variable rates accordingly, usually within a few weeks.
The Australian Prudential Regulation Authority (APRA) the regulator overseeing banks and ensuring financial stability influences how much capital banks must hold, indirectly affecting the spread they can offer borrowers.
Beyond these macro factors, lenders consider each applicant’s risk profile-credit score, Loan‑to‑Value Ratio (LVR), and the loan’s purpose (rate‑only vs cash‑out). A lower LVR (e.g., 70% vs 90%) typically earns a better rate because the bank’s exposure is reduced.
Current Rate Landscape (October2025)
Lender | 5‑Year Fixed Rate | Variable Rate | Cash‑Out Premium | Typical LVR Cap |
---|---|---|---|---|
Commonwealth Bank | 4.95% | 4.85% | +0.35% | 80% |
ANZ | 5.05% | 4.95% | +0.40% | 80% |
Westpac | 5.10% | 5.00% | +0.45% | 85% |
NAB | 5.00% | 4.90% | +0.35% | 80% |
Macquarie | 4.88% | 4.78% | +0.30% | 75% |
These rates assume a credit‑worthy borrower with a 750+ FICO‑equivalent score and a loan amount under $800,000. Higher LVRs or lower credit scores can add 0.2‑0.7% to the quoted figures.

Fixed vs Variable: Pros and Cons
Fixed‑rate mortgages give certainty-your repayments stay the same for the chosen term. This is ideal if you plan to stay in the home for the next few years or if you expect interest rates to rise.
- Pros: Predictable payments, protection against rate hikes, easier budgeting.
- Cons: Usually a slightly higher rate than the variable baseline, early‑exit fees if you refinance before term ends.
Variable‑rate mortgages track the market. When the RBA cuts rates, you benefit instantly; when it hikes, your repayments rise.
- Pros: Typically lower starting rate, flexibility to switch lenders without penalty, can be cheaper if rates stay low.
- Cons: Uncertainty in budgeting, risk of payment spikes if the cash rate climbs.
Many Australians adopt a hybrid approach: lock 2‑year fixed for a portion of the loan and keep the remainder variable to retain flexibility.
How to Choose the Right Remortgage Rate
Start by assessing three key variables:
- Loan‑to‑Value Ratio (LVR) the loan amount divided by the property’s market value. Aim for 80% or lower to unlock the best rates.
- Your credit profile. A score of 750+ usually secures the lowest spreads.
- Purpose of the remortgage. If you’re pulling cash for renovations, expect a premium (the “cash‑out premium” column in the table).
Run a quick breakeven calculation: multiply the rate difference by the loan amount and compare it to any upfront fees. For example, a 0.25% lower variable rate might save $250 per year on a $100,000 loan, but if the lender charges a $1,200 establishment fee, you’ll need about five years to break even.
Step‑by‑Step Guide to Secure a Remortgage
- Gather your financial documents: recent payslips, tax returns, current loan statement, and proof of insurance.
- Check your credit score using a free service. Remedy any inaccuracies before applying.
- Decide on the loan structure (fixed, variable, or split) and the LVR you’re comfortable with.
- Use a reputable comparison portal or speak to a mortgage broker to pull quotes from at least three lenders.
- Request a formal “Product Disclosure Statement” (PDS) from each lender and scrutinize fees-especially early‑exit, valuation, and settlement fees.
- Negotiate. Lenders often shave off 0.05‑0.10% if you present a competing offer.
- Complete the application. Provide required documentation and a valuation request (banks may use internal valuations for lower LVRs).
- Review the loan contract carefully before signing. Confirm the settlement date aligns with your current mortgage’s payoff schedule.
- Set up automatic payments to avoid missed instalments and potentially lower your rate further.
Most borrowers finish the whole process within 3‑6 weeks, but peak periods (e.g., January after the holidays) can stretch timelines.
Common Pitfalls and How to Avoid Them
- Chasing the lowest headline rate without checking fee structures. A low rate paired with high fees can cost more overall.
- Ignoring the break‑even point on fixed‑rate terms. Early repayment penalties can erode savings if you move before the term ends.
- Over‑leveraging by borrowing more than you need. Higher LVRs increase interest costs and risk of negative equity.
- Failing to lock in a rate before the RBA announces a change. Rates can shift up to 0.25% in a single meeting.
- Not reviewing the loan annually. Many lenders allow a rate renegotiation after 12 months, which can capture market improvements.
Frequently Asked Questions
What exactly is a remortgage?
A remortgage is the process of replacing your existing home loan with a new one, usually to obtain a better interest rate, change loan features, or release equity.
Are fixed rates cheaper than variable rates right now?
In October2025, variable rates average slightly lower (around 5.0%p.a.) than 5‑year fixed rates (about 5.3%p.a.). However, the difference narrows for low‑LVR borrowers, and fixed rates protect you from future rises.
How does the RBA affect my remortgage?
The RBA sets the cash rate, which is the benchmark for most variable mortgages. When the RBA hikes, variable rates usually rise within weeks; when it cuts, rates tend to drop quickly.
Can I refinance without paying early exit fees?
Some lenders offer a “no‑penalty” switch after a certain period (often 12‑24 months) or for borrowers moving to a lower LVR. Always read the product disclosure to see the exact terms.
Is a cash‑out remortgage worth the extra cost?
If you need funds for renovations that add value to your home, the 0.3‑0.5% premium can be justified. For non‑essential spending, the extra interest may outweigh the benefit.
Keeping an eye on the RBA’s meetings, comparing offers weekly, and reviewing your loan’s break‑even point will help you lock in the best remortgage rates for your situation. Happy refinancing!