Refinance calculator: is refinancing my home loan worth it?
Enter your current loan and the new rate you've been offered. You'll see the new monthly repayment, how long it takes to earn back the costs, and what you save overall.
Is refinancing my home loan worth it?
You'd save each month
RM134
Worth considering only if you'll keep this loan for more than 45 months.
A new loan usually means new mortgage protection (MRTA or MLTA). We can review it with you.
💬 Review my mortgage protectionIllustrative estimate based only on the figures you enter. It isn't financial advice or a quote, and nothing you type is saved.
How this calculator works
It compares your repayment at both rates, then checks whether the savings cover the cost of switching:
- Monthly repayments: the standard repayment on your outstanding balance over the years left, at the current rate and at the new one.
- Total cost of switching: legal fees, valuation, stamp duty and new mortgage protection, plus any early settlement penalty.
- Break-even: total cost ÷ monthly saving. Before that month you're behind; after it you're genuinely saving.
- Net saving: the monthly saving over the rest of the loan, minus the cost of switching.
It's the break-even test from our guide on whether you should refinance your home loan. To see what decides the new rate, read how refinance interest rates work.
A worked example
A RM400,000 balance with 25 years left costs about RM2,223 a month at 4.50%. At 3.90% it's about RM2,089, a saving of around RM134 a month. With RM6,000 of switching costs, it takes about 45 months (almost four years) to break even, and the net saving over the rest of the loan is around RM34,000. A lower rate helps, but only if you keep the loan well past month 45. (Figures illustrative.)
What it doesn't include
- Rate changes. Most home loans are variable, so both rates can move over time.
- Cash-out refinancing, where you borrow more than you owe. That changes the maths and adds new debt.
- Your mortgage protection. Existing MRTA is tied to the old loan, so a new loan usually needs new cover. Compare MRTA vs MLTA before accepting the bank's default.
Frequently asked questions
When is refinancing worth it in Malaysia?
When the monthly saving pays back your switching costs well before you'd sell or settle the loan. Work out the break-even month: if you'll keep the loan comfortably beyond it, refinancing can make sense.
What does it cost to refinance a home loan?
Typically legal fees, a valuation fee, stamp duty and new mortgage protection, often a few thousand ringgit in total. If you're still in the lock-in period, add an early settlement penalty, often 2–3% of the outstanding loan.
Do I need new MRTA when I refinance?
Usually, yes. MRTA is tied to the original loan, so a new loan normally needs fresh cover. It's a good moment to compare MRTA and MLTA rather than accept the bank's default.
Should I refinance during my lock-in period?
It's rarely worth it. The early settlement penalty, often 2–3% of the loan, usually pushes the break-even point years away. Add it to the calculator to see the effect.
Keep going
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