How an Osborne Park Couple Could Save $4,200 a Year by Refinancing
An illustrative scenario: after 8 years with one bank and a rate drifted to 6.85%, refinancing could deliver around $7,200 of first-year benefit.
The scenario below is illustrative, based on common client situations — it isn’t a record of an actual Matrix Finance client, and names and figures are examples only.
Mike and Sarah had been with the same bank since they bought their Osborne Park home eight years ago. They’d never missed a payment, always paid on time, and considered themselves good customers.
Their reward? A rate of 6.85% on a $620,000 remaining balance.
They’d seen ads about cashback refinance deals but assumed switching would be complicated, that break fees would wipe out any gain, or that they’d have to start their loan term over from scratch. None of that turned out to be true.
The Problem With Loyalty
Bank loyalty rarely pays in Australian home lending. While new customers are offered competitive rates to attract business, existing customers often find themselves on rates that quietly drift upward — or simply never come down when the market does.
On a $620,000 balance at 6.85%, Mike and Sarah were paying approximately $4,050 per month in repayments, with a significant portion going to interest.
What We Did
We ran a comparison across six lenders in our panel. Within a day, we had a clear picture of where the market was and what Mike and Sarah could access given their financial position:
- Strong credit history
- LVR well under 80% (no LMI required)
- Both employed with stable income
- No other significant liabilities
One lender stood out: a rate of 6.20% with a full offset account and a $3,000 cashback on settlement.
We modelled the net benefit after factoring in:
- Discharge fee from the existing lender (~$300)
- Government mortgage registration fee (~$200)
- New lender’s settlement fee (~$300)
Total switching cost: approximately $800.
Net first-year benefit after costs: well over $6,000.
The Result
| Old rate | 6.85% |
| New rate | 6.20% |
| Annual interest saving | ~$4,200 |
| Cashback received | $3,000 |
| Switching costs | ~$800 |
| First-year net benefit | ~$6,400 |
The offset account means their savings now work to reduce the interest they pay daily — so the effective saving grows as they build their buffer.
We kept the same loan term (they didn’t want to reset to 30 years) and structured the new loan to match their remaining years.
They settled within four weeks.
What Most People Get Wrong About Refinancing
“My break fees will be too high.” Break fees only apply to fixed-rate loans being exited early. Mike and Sarah were on a variable rate — there were no break fees.
“It’s too much paperwork.” We handled the entire process: gathering documents, liaising with the new lender, coordinating discharge from the old one. Their time investment was roughly two hours across the entire process.
“We’ll lose our loan progress.” The loan term and offset history don’t transfer — but the remaining balance and equity do. You don’t start over; you continue from where you are, just with better terms.
This scenario is illustrative only. Savings depend on your loan, the rate environment and switching costs, and aren’t guaranteed. Rates change frequently — book a free call to see what’s available now.