We have (finally) refinanced one of our properties. The refinancing involves:
1. a reduction in the interest rate of 0.5% (from prime - 2.50% to prime -3.0%);
2. a shift from monthly to fortnightly payments;
3. a cash rebate of 0.4% of loan principle (about 3 times the legal fees involved in discharging the old mortgage and registering the new mortgage);
4. a reduction in term by 16 months.
The principal amount and the payments are about the same.
The penalty period for early repayments is two years.