Refinance Home Loan Calculator Malaysia 2026
Calculate your potential savings by refinancing your home loan. See how much you could save monthly and over your loan tenure.
Compare rates from 14 banks. Instant results. 100% free.
Calculate Your Savings
How to Use This Calculator
Follow these 7 simple steps to calculate your potential refinancing savings. You'll need your current loan statement handy for accurate results.
Enter your outstanding loan amount
Check your latest bank statement for the current outstanding balance. This is the amount you still owe, not the original loan amount.
Enter your current interest rate
Found on your loan agreement or bank statement. Most Malaysian home loans are on Base Rate (BR) + spread. If unsure, use 4.5-5% as an estimate for older loans.
Enter remaining tenure in years
How many years are left on your current home loan. If your loan was 30 years and you've paid 10 years, enter 20.
Select a new interest rate
Choose from the dropdown or use 3.85% as a realistic benchmark. The best available rates currently start from 3.80% (Bank Islam) and 3.90% (Standard Chartered).
Click "Calculate My Savings"
The calculator will instantly compute your monthly payment under both scenarios and show the difference.
Review your savings breakdown
See monthly savings, yearly savings, and total savings over remaining tenure. The total savings figure already deducts estimated refinancing costs of RM5,000.
Check break-even period
This tells you how many months it takes for your savings to exceed refinancing costs. A break-even under 36 months is generally considered good.
Understanding Your Results
Here's what each number in your results means and how to interpret them for your refinancing decision.
Monthly Savings
The difference between your current monthly payment and the new monthly payment after refinancing. This is extra money in your pocket every month. Most successful refinancers save RM150-500 per month.
Yearly Savings
Monthly savings multiplied by 12. This gives you a better perspective on the annual impact. For example, RM250/month savings = RM3,000/year that you can use for investments, education, or other financial goals.
Total Interest Savings
The total amount saved over the remaining loan tenure, minus estimated refinancing costs (RM5,000). This is the true bottom-line savings from refinancing. On a RM400,000 loan with 20 years remaining, this can easily exceed RM40,000.
Break-even Period
Refinancing costs (estimated RM5,000) divided by monthly savings = number of months to recover your costs. After the break-even point, every month is pure savings. A break-even period under 36 months is considered excellent.
Is Refinancing Worth It?
Generally yes if your break-even period is less than 3 years AND you have more than 10 years remaining on your loan. If your monthly savings exceed RM150, it's almost always worth refinancing once your lock-in period has ended.
Current Refinancing Rates — All 14 Banks (2026)
Compare refinancing rates from all major banks in Malaysia. Use these rates when selecting the "New Interest Rate" in the calculator above. For detailed reviews of each bank, click the bank name.
| Bank | Rate From | Type | Best For |
|---|---|---|---|
| Bank Islam | 3.80% | Islamic | Lowest rate |
| Standard Chartered | 3.90% | Conventional | Offset account |
| Al Rajhi | 3.90% | Islamic | Low rate Islamic |
| RHB | 4.10% | Conventional | Fast approval |
| Public Bank | 4.22% | Conventional | Reliable |
| Bank Rakyat | 4.20% | Islamic | Govt servants |
| Bank Muamalat | 4.25% | Islamic | Musharakah |
| HSBC | 4.30% | Conventional | RM50k costs waived |
| Maybank | 4.35% | Conventional | Largest network |
| CIMB | 4.35% | Both | Self-employed |
| Hong Leong | 4.38% | Both | High DSR (75%) |
| AmBank | 4.40% | Both | Flexible |
| UOB | 4.61% | Both | 95% margin |
* Rates are indicative and subject to change based on Bank Negara's OPR and individual bank policies. See the full rates comparison for more details.
Refinancing Costs Breakdown
Before refinancing, factor in these one-time costs. The calculator already deducts an estimated RM5,000 from your total savings, but actual costs vary.
| Cost | Amount | Notes |
|---|---|---|
| Legal fees | RM2,000 - RM5,000 | Depends on loan amount |
| Valuation fees | RM300 - RM1,000 | Property size dependent |
| Stamp duty | 0.5% of loan | Government fee |
| Discharge fee | RM200 - RM500 | Current bank charges |
| Total estimate | RM3,000 - RM8,000 | Some banks waive fees |
Cost-saving tip: HSBC waives up to RM50,000 in upfront costs. Standard Chartered offers zero entry cost packages. Many banks also offer cashback promotions that can offset these costs.
Example Calculations
Here are three real scenarios to help you understand when refinancing makes financial sense — and when it doesn't.
RM300,000 Loan — 15 Years Remaining
Monthly savings
RM139
Break-even
36 months
Total savings
RM20,020
Verdict: Worth refinancing — savings recover costs within 3 years with 12 years of pure savings after.
RM500,000 Loan — 20 Years Remaining
Monthly savings
RM170
Break-even
30 months
Total savings
RM35,800
Verdict: Worth refinancing — longer tenure means more years of savings, totalling RM35,800+.
RM200,000 Loan — 5 Years Remaining
Monthly savings
RM55
Break-even
91 months
Total savings
-RM1,700
Verdict: Not worth it — break-even period (91 months) exceeds remaining tenure (60 months). You'd lose money.
When Refinancing Makes Sense
Refinance If
- Rate difference is more than 0.5%
- Remaining tenure is more than 10 years
- Break-even period is under 3 years
- Lock-in period has ended
- Your credit score has improved since original loan
Don't Refinance If
- Less than 5 years remaining on loan
- Rate difference is less than 0.3%
- Still in lock-in period (2-3% penalty applies)
- Planning to sell property soon
Not sure? Check your DSR eligibility first, then compare banks to find the best fit for your situation.
What Affects Your Refinance Rate?
Not everyone gets the advertised rate. Here are the 6 factors banks consider when determining your actual refinancing rate.
1. Loan Amount
Higher loan amounts (RM500k+) often qualify for better rates. Banks are more willing to offer discounts on larger loans as they earn more interest overall.
2. DSR (Debt Service Ratio)
Lower DSR = better rates. Most banks cap at 65-70% DSR, but Hong Leong accepts up to 75%. Check your DSR →
3. Property Type
Landed properties and high-rise in prime locations typically get better rates than apartments or properties in rural areas.
4. Employment Type
Salaried employees generally get better rates than self-employed. Government servants can access special rates from Bank Rakyat and LPPSA.
5. Credit Score
Your CCRIS and CTOS record directly impacts your rate. Late payments or defaults in the past 12 months can result in higher rates or rejection.
6. Bank Relationship
Existing customers with salary accounts, credit cards, or other products with a bank may qualify for preferential rates or faster approval.
Like What You See in the Calculator?
Get exact quotes from multiple banks — our specialists compare offers and find the best deal for your profile. Free, no obligation.
Frequently Asked Questions
Next Steps After Calculating
Now that you know your potential savings, here's what to do next based on your results.
Check DSR Eligibility
Make sure your debt ratio qualifies for refinancing
Compare Banks in Detail
See pros, cons, and detailed reviews of 14 banks
Prepare Documents
Complete checklist of what you need for your application
Calculate Cash Out
See how much equity you can extract from your property
View Latest Rates
See updated rates from all banks, refreshed monthly
Ready to Start Saving?
Our calculator gives you an estimate. Get exact quotes from Malaysia's top banks today — it's free and takes only 2 minutes.