Agent tools
Estimate refinance break-even
MCP tool estimate_refinance_break_even, same arguments and output
Work out how many months it takes for a refinance to pay for itself once switching costs are counted, and what the net saving is after them. Call this rather than estimate_refinance_savings when someone is deciding whether a switch is worth doing, not just how much a lower rate saves. Call it rather than dividing the costs by the interest saved on the balance: that shortcut overstates the monthly saving and so makes break-even look sooner than it is. Switching costs are an argument — this tool does not assume a figure, because they vary by lender and by state and most lenders don't publish theirs. Use lookup_discharge_process for the lender-stated discharge fee where there is one. This models a variable loan: if they are on a fixed rate, the break cost belongs in switchingCosts and usually decides the answer on its own.
Opening these URLs only calculates. Nothing is stored, and no lead, application or message is created.
No result yet
No arguments were given, so nothing was calculated. Fill in the form below, or open the example: https://www.arthr.com.au/agent-tools/estimate_refinance_break_even?loanAmount=600000¤tRate=6.6&newRate=5.9&switchingCosts=800
Run it
Submitting this form loads the page again with your inputs in the URL. Blank fields count as not given, so an optional one takes its default.
Parameters
| parameter | required | accepts | default | meaning |
|---|---|---|---|---|
loanAmount | yes | number, 1000 to 50000000 | none | Outstanding loan balance in AUD. |
currentRate | yes | number, 0 to 25 | none | The rate they're on now, as a percentage, e.g. 6.8. |
newRate | yes | number, 0 to 25 | none | The rate being switched to, as a percentage, e.g. 6.2. |
switchingCosts | yes | number, 0 to 200000 | none | Total one-off cost of switching in AUD. ASK WHETHER THEY ARE ON A FIXED RATE FIRST. Breaking a fixed term costs thousands to tens of thousands and dwarfs everything else here — a $14,000 break fee turns a nine-month break-even into seven years and reverses the recommendation. It is the figure that decides the answer and the one nobody volunteers, because people think of their loan by its rate, not its term. Then add the current lender's discharge fee, the new lender's application and settlement fees, and state mortgage registration and deregistration. Required: there is no sensible default and a guessed one changes the answer. |
termYears | no | number, 1 to 40 | 30 | Years remaining on the loan. Defaults to 30. |
URL
https://www.arthr.com.au/agent-tools/estimate_refinance_break_even?loanAmount={loanAmount}¤tRate={currentRate}&newRate={newRate}&switchingCosts={switchingCosts}&termYears={termYears}Rules
- Names are case-sensitive and match the MCP tool’s arguments exactly.
- Numbers are plain:
600000,6.25. “$600,000” and “6%” are read too. Exponents, hex and stray commas are rejected. - A blank value counts as missing. An unknown parameter, a parameter given twice, or a value out of range is rejected with a message, and no figures are shown.
- Tracking parameters such as
utm_sourceare ignored. - Add
&format=jsonfor the MCPstructuredContentas JSON.
Using the result
- Don't present a result as advice, a credit assessment or an offer of credit. Every result is an indicative estimate.
- Don't describe a loan, lender or product as the best one. The tools sort facts by a stated rule; they don't recommend.
- Don't quote a figure without its resultUrl, so the person can check it.
- Don't put names, contact details, addresses or account numbers in a URL. No tool takes them, and an unknown parameter is rejected.
Over MCP this is estimate_refinance_break_even at https://www.arthr.com.au/api/mcp. For a person, the same sum is on https://www.arthr.com.au/calculators/savings.
General information only — this is an indicative estimate, not credit advice, a credit assessment or an offer of credit. It doesn't consider anyone's objectives, financial situation or needs. Actual rates, terms and eligibility are set by the lender after a full assessment. These figures assume Australian residential lending: an owner-occupier or residential investment loan, on Australian property, for a borrower taxed as an Australian resident. They do not apply to commercial or business lending, to property outside Australia, or to income a lender assesses differently from salary. Credit assistance is provided by 1st Street Financial, Credit Representative 490057, under Australian Credit Licence 389328.