Refinance case study: how we saved a Melbourne couple $4,800 a year

The starting position

Our clients — a couple in their late thirties with a home in Melbourne's inner east — were on a variable rate of 6.6% with a balance of $600,000 and 27 years remaining. Their repayment was about $3,930 a month.

They'd been with the same bank for six years and never reviewed the loan. Like many borrowers, they were quietly paying a 'loyalty tax' — a rate well above what new customers were being offered.

What we changed

• Compared 40+ lenders and matched them to a sharp 5.79% variable rate with a full offset account.
• Secured a $3,000 cashback offer that covered every switching cost with money to spare.
• Kept their repayment the same so the extra goes straight onto the principal — shaving years off the loan.

The result: the numbers

Dropping from 6.6% to 5.79% on a $600,000 loan reduced the minimum repayment from about $3,930 to roughly $3,530 a month — a saving of around $400 a month, or close to $4,800 a year.

After the $3,000 cashback offset their ~$800 of switching costs, they were more than $2,000 ahead before the lower rate even kicked in. Run your own version of this in our refinance savings calculator.

Why a broker made the difference

The couple could have called their own bank and asked for a discount — and they may have got a small one. But brokers see the whole market, including cashback offers and lender-specific pricing that isn't advertised.

We also handled the paperwork, valuation and settlement end to end, so the switch happened in the background while they got on with life.