Is refinancing worth it for a 0.15 percentage-point rate cut?

A 0.15 percentage-point rate cut can be worth refinancing for. On a larger loan, that small difference can add up. On a smaller one, the cost of moving can eat the benefit.

But the new repayment only tells part of the story. You also need to know what happens to your interest, fees and payoff date.

There’s no magic rate gap that makes refinancing worthwhile. Here’s what 15 basis points—the same as 0.15 percentage points—can actually do.

How much do you owe?

Our daily rates table gives us a real example. Checked against the lenders’ pages on 24 October 2026, Macquarie Basic advertises 6.29%, while Bendigo Express variable advertises 6.14%. Their comparison rates are 6.31% and 6.27% respectively.

Both are owner-occupier principal-and-interest rates. Macquarie’s price is for new lending at up to 60% loan-to-value ratio; Bendigo’s online-only offer goes up to 80%. Suppose you’re paying 6.29% on Macquarie Basic and qualify for Bendigo’s 6.14%. Keep 20 years remaining and assume no offset money. Bendigo charges $10 a month; Macquarie Basic has no ongoing loan fee.

Holding those rates constant gives us:

The same rate cut produces very different dollar results. The larger the balance attracting interest, the more room there is to cover switching costs.

On $600,000, repayments fall from $4,399.57 to $4,347.19. Allow for Bendigo’s monthly fee and the cash-flow improvement is $42.38 a month. After three years, you also owe about $780 less: $549,655 instead of $550,435.

That matters. Principal repayments reduce your debt. Interest and fees are what borrowing costs you. Comparing repayments alone misses the difference.

What will it actually cost to move?

Use an itemised quote. A flat $1,500 allowance can change the answer without telling you what you’re paying for.

For a Victorian refinance using Bendigo’s published electronic valuation charge, three identified costs total $792.60: Macquarie’s $400 discharge fee, $258.40 to register the discharge and new mortgage, and $134.20 for the valuation. Other applicable charges come on top.

Bendigo’s general fee guide also lists $150 application and $100 settlement fees. If both apply, the subtotal reaches $1,042.60. Document preparation, searches and other settlement costs may add more; the loan schedule needs to confirm which apply. A full valuation can also cost more. This is an itemised illustration, not an all-in quote.

For the $600,000 example, there’s $2,306 of three-year benefit available to cover moving costs. If your actual total is $1,000, you keep about $1,306. If it’s $1,500, you keep about $806.

Also check any fixed-rate break cost and possible lenders mortgage insurance. Get a current break quote: Macquarie says its break costs can change daily. Adding fees to the loan doesn’t make them free—you borrow more and pay interest on them.

Cashback can help cover costs, but count it once and check the conditions, payment timing and any clawback. It doesn’t prove the loan is better value.

Ask your lender before you pack up

Get your existing lender’s best confirmed offer, then compare it with the refinance.

Suppose your lender agrees to 6.19%, with no repricing charge or ongoing fee. On $600,000, moving to 6.14% now leaves only about $528 over three years after Bendigo’s ongoing fees, before switching costs. That’s a hypothetical retention offer, but it shows why the old rate is the wrong benchmark once a better offer is on the table.

You might get most of the benefit without moving. Or the external deal might still be worth it. Run all three options: stay, reprice and switch.

A fresh 30-year term can be expensive

A lower repayment can come from a lower rate, a longer term, or both. Check which one is doing the work.

These figures hold rates constant and exclude fees. Starting another 30 years cuts the repayment by about $748 compared with the original loan—but adds roughly $258,638 in interest.

That repayment relief may be useful. It still comes with ten more years of scheduled payments. If you plan to keep paying the old amount, compare that plan too.

Money in offset changes the calculation

With $600,000 owing and a correctly linked 100% offset:

• No offset balance means interest starts on $600,000.
• $100,000 in offset brings the interest-bearing balance down to $500,000.
• $600,000 in offset means no interest while the loan stays fully offset.

A smaller interest-bearing balance gives a rate cut less work to do. If you’re fully offset, compare fees and useful features first. A cheaper rate could matter later if you withdraw money.

Macquarie Basic has no offset, so don’t apply those offset figures to that product. Compare loans with the features you actually use. Bendigo Express variable has a full offset; Macquarie’s offset product has separate pricing and fees.

After settlement, check that the offset is linked to the correct loan. ASIC’s review found banks had failed customers through offset setup and linking problems. An account called “offset” is only useful if it’s doing the job.

Is the rate a 12 or 24 month special?

The reviewed Macquarie Basic and Bendigo Express variable pages don’t specify a 12- or 24-month introductory expiry. Both rates can still change.

For Big Four context, NAB Base Variable advertises 6.69% with a 6.69% comparison rate. Westpac’s separate online Flexi First offer advertises 6.24%, with a 6.25% comparison rate, at up to 70% LVR. Westpac describes its discount as lasting for the life of the loan; the interest rate remains variable. These are selected offers, not each bank’s lowest possible negotiated rate.

Ask what happens after any introductory or fixed period. Get the follow-on pricing and date in writing, then include them in the comparison. A deadline to apply is different from a discount expiring.

Stay, reprice or switch?

Before deciding, check:

• Stay: Would moving cost more than it saves before you sell or repay?
• Reprice: What has your existing lender actually offered, including fees?
• Switch: What remains of the interest saving after ongoing fees and the full cost of moving?
• Term and offset: Are you adding years, losing useful features or planning to spend offset money?

For a rough break-even, divide upfront costs by positive monthly interest savings after extra ongoing fees. It needs reasonably stable assumptions. If ongoing savings are zero or negative, they won’t recover the moving costs. Use a repayment schedule for a proper comparison as the debt falls.

There’s some work involved: documents, assessment, valuation, discharge and setting up repayments and any offset. You don’t automatically have to move all your everyday banking. Our refinance guide covers the process, and the rate review calculator helps you start comparing.

Rate Challenge can review your actual costs and loan structure, including your lender’s retention offer, so you can see whether staying, repricing or switching makes sense.

About the numbers

Rates and fees checked 24 October 2026. Examples use monthly principal-and-interest repayments, unchanged rates and separately paid costs. They approximate lenders’ daily interest calculations. The main model uses no offset, cashback, break costs, LMI or tax effects.