Check whether refinancing your home loan saves money after legal fees, valuation, stamp duty and any lock-in penalty.
You'd save overall
RM 31,201.81
Interest saved over the loan, after switching costs
You'd save overall: RM 31,201.81
Stretching the tenure lowers the instalment but can raise total interest. Check your current loan’s lock-in period: settling inside it usually costs a penalty, which belongs in switching costs.
RM400,000 at 4.5% for 25 years, refinanced to 3.9%
RM134 a month lower; RM9,000 costs recovered in 68 months.
Saves about RM31,200 overall
How the figures above are worked out — the rules, rates and reasoning behind every line.
A lower rate cuts your instalment and total interest, but switching banks costs money upfront. The calculator compares the interest you would save with those costs and shows how long the lower instalment takes to pay them back.
If you plan to sell before the break-even point, refinancing may not pay off.
Legal fees for the new loan agreement, valuation fees and loan stamp duty (0.5% of the new loan).
A lock-in penalty if your current loan is still in its lock-in period, often the first 3 to 5 years.
Some banks offer to pay legal fees, which shortens the break-even time.
A longer tenure lowers the monthly instalment but usually increases the total interest. Compare both with the calculator.
Yes. Many banks will reprice an existing loan to keep you, often with lower costs than refinancing elsewhere.
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