Two worked examples. These are illustrations, not client case studies or current bank offers.
$800,000 outstanding, 25 years remaining. Rates remain at 3.5% and 2.5% throughout the 24-month comparison.
The interest saving exceeds the switching costs during this period.
| Current monthly payment | $4,005 |
|---|---|
| New monthly payment | $3,589 |
| Interest saved | $15,747 |
| Switching costs | $2,500 |
| Net interest saving | $13,247 |
| Costs recovered | Month 4 |
$200,000 outstanding, 15 years remaining. Rates remain at 2.7% and 2.5% throughout the 12-month comparison.
The interest saving does not cover the switching costs during this period.
| Current monthly payment | $1,352 |
|---|---|
| New monthly payment | $1,334 |
| Interest saved | $392 |
| Switching costs | $2,500 |
| Net interest saving | -$2,108 |
| Costs recovered | Not within this period |
Calculated on reducing loan balances with monthly repayments over the same remaining loan period. Switching costs are paid separately. Actual rates, fees and repayment dates will affect the result.
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