What the refinancing calculator does
This calculator compares your current home loan with a new one at a different rate and tenure: the change in your monthly instalment, the cost of switching, and how many months the saving takes to pay that cost back.
It also compares the total still to pay on each loan, and lets you add cash out on top of the balance.
What you should know
- Lock-in period
- Many loans charge an early settlement fee, for example 2% of the balance, if you settle within the lock-in period, often the first 2 or 3 years. Some loans have none. Your letter of offer has the exact terms
- Costs of switching
- Lawyer's fees for the new loan, 0.5% stamp duty on the new loan, a valuation fee and disbursements. Some banks pay part of these
- Cash out
- Borrowing more than your balance raises the new instalment and the total interest you pay
- Longer tenure
- Stretching the loan lowers the instalment but usually raises the total interest
Good to know
- Ask your current bank first: it may lower your rate without a full refinance, which saves the switching costs.
- Compare the effective rate over the full loan, not a low rate that only applies for the first year or two.
Figures reflect the rules as we understand them and can change. Check with your bank, lawyer or LHDN before you rely on them.