Refinance Calculator Malaysia
Refinancing pays off when the interest saved beats the costs. RM300,000 over 25 years from 4.5% to 3.9% cuts the instalment from RM 1,667.50 to RM 1,566.99 and saves RM 30,150.24 in interest. After RM 7,350.00 in costs (0.5% stamp duty, legal fees, valuation), the net saving is RM 22,800.24, breaking even in 74 months. Enter your loan below.
Comparison
Net saving
Save RM 100.51 a month · break-even 74 months
| Current instalment | RM 1,667.50 |
|---|---|
| New instalment (same balance) | RM 1,566.99 |
| Interest saved | RM 30,150.24 |
| Refinancing costs | − RM 7,350.00 |
| Net saving | RM 22,800.24 |
| Break-even | 74 months |
| Stamp duty 0.5% | RM 1,500.00 |
|---|---|
| Legal fees (SRO 2023) | RM 3,750.00 |
| 8% SST on legal fees | RM 300.00 |
| Lock-in penalty | RM 0.00 |
| Valuation fee | RM 800.00 |
| Other costs | RM 1,000.00 |
| Total costs | RM 7,350.00 |
The saving compares the same balance for fairness; cash-out raises the new instalment separately.
Advertisement
Saving by new rate (RM300,000 balance, 25 years, from 4.5%)
| New rate | Saved a month | Interest saved | Net of costs | Break-even |
|---|---|---|---|---|
| 4.25% | RM 42.29 | RM 12,683.52 | RM 5,333.52 | 174 months |
| 4.00% | RM 83.99 | RM 25,195.61 | RM 17,845.61 | 88 months |
| 3.75% | RM 125.11 | RM 37,529.97 | RM 30,179.97 | 59 months |
| 3.50% | RM 165.63 | RM 49,687.51 | RM 42,337.51 | 45 months |
How refinancing is worked out
- Instalment = loan × r ÷ (1 − (1 + r)−n), where r = rate ÷ 12 and n = months.
- Interest saved = total interest on the old loan − interest on the new loan for the same balance.
- Costs = 0.5% stamp duty + SRO 2023 legal fees + 8% SST + penalty + valuation + other.
- Break-even = costs ÷ monthly instalment saving.
Advertisement
Refinancing stamp duty and legal fees
| New loan | Stamp duty 0.5% | Legal fees + SST | Total |
|---|---|---|---|
| RM 200,000.00 | RM 1,000.00 | RM 2,700.00 | RM 3,700.00 |
| RM 300,000.00 | RM 1,500.00 | RM 4,050.00 | RM 5,550.00 |
| RM 500,000.00 | RM 2,500.00 | RM 6,750.00 | RM 9,250.00 |
| RM 800,000.00 | RM 4,000.00 | RM 9,990.00 | RM 13,990.00 |
When refinancing pays off
- The new rate is at least 0.5% below your current rate.
- You are past the lock-in period, or the penalty is small next to the saving.
- You will keep the house longer than the break-even period.
- A longer tenure lowers the instalment but adds interest; compare total interest, not just the instalment.
Sources
- Bank Negara Malaysia: monetary policy statement (OPR)
- PropertyGuru: refinancing guide
- iProperty: how to refinance a housing loan
Disclaimer: An estimate only, not financial advice. The bank sets the rate, fees and approval, and the actual legal fees follow your lawyer's quotation.
Frequently asked questions
Is refinancing a home loan worth it?
Usually, if the rate falls by at least 0.5% and you will keep the house longer than the break-even period. RM300,000 over 25 years from 4.5% to 3.9% saves RM 100.51 a month and RM 30,150.24 in interest; after RM 7,350.00 in costs, the net saving is RM 22,800.24.
How much does refinancing cost?
0.5% stamp duty on the new loan amount, SRO 2023 legal fees (1.25% on the first RM500,000, minimum RM500) plus 8% SST, a valuation fee, the cost of discharging the old charge and a lock-in penalty if you are still within it. For a RM300,000 loan, stamp duty is RM1,500 and legal fees RM3,750 + RM300 SST.
Is stamp duty exempted for refinancing?
No. The 0.5% stamp duty is charged again on the new loan agreement. The first-home stamp duty exemption applies to purchases, not refinancing.
How do I work out the refinancing break-even?
Divide the total refinancing cost by the monthly instalment saving. RM7,350 in costs ÷ RM100.51 a month = 74 months. If you sell or refinance again before then, refinancing loses money.
What is a lock-in penalty?
Most home loans have a lock-in period of 3 to 5 years. Settling the loan within it carries a penalty, usually 2% to 3% of the balance or original loan under the agreement. Check your loan agreement.
Can I cash out when I refinance?
Yes, a cash-out refinance borrows more than the current balance, subject to the home's value and your DSR. Stamp duty and legal fees are worked out on the new loan amount, and the instalment rises because the loan is bigger.
What is the current OPR?
Bank Negara held the OPR at 2.75% on 3 September 2026. Variable home loan rates follow each bank's Standardised Base Rate (SBR), which moves with the OPR.
Share this calculator
Advertisement