How to find your remaining loan term

RateCity Staff

By RateCity Staff

2 min read

One of the most popular reasons to refinance is to reduce the amount of time you spend paying off your home loan. 

Say you have a 30 year loan term and are comfortable meeting your current repayments, a drop in interest rates by even one percentage point could shave years off your term. 

The below case study demonstrates how: 

How Maria took four years off her loan term

Maria bought an apartment in the Sydney suburb of Croydon in 2011. The property was $500,000 and she borrowed $400,000. She elected a 30-year loan term with one of the Big Four banks, which would see her paying off her property until 2031. Maria became disenchanted when her bank repeatedly failed to pass on RBA interest rate cuts, but didn’t switch lenders because she could comfortably meet her monthly repayments of 1,881. However, she discovered by moving to a lower cost lender, she could keep her repayment rate the same, but reduce the number of years she held the loan for. She chose to ditch her 5 per cent interest rate and take a 3.75 per cent rate with a new lender. In doing so, she reduced her remaining loan term from 25 years to 20 years and 11 months.


Refinancing for the purpose of reducing a loan term doesn’t receive as much attention as other refinancing goals. One of the reasons is it can be difficult to figure out how a change in interest rates can reduce a loan term. 

RateCity’s switch calculator allows borrowers to specify their refinance goal and if the goal is to cut down a loan term, borrowers can find out what their loan term would be if they changed to a low cost lender. 

Refinancing home loans

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