How Much Can I Save by Refinancing My Home Loan in Malaysia?
On average, Malaysian homeowners save RM300-700 per month by refinancing from 4.5% to 3.85% interest rate. On a RM500,000 loan with 20 years remaining, that is approximately RM245/month or RM58,800 total savings.
Savings by Loan Amount
Based on refinancing from 4.5% to 3.85% with 20 years remaining:
| Loan Amount | Old (4.5%) | New (3.85%) | Monthly Savings | Total (20yr) |
|---|---|---|---|---|
| RM300,000 | RM1,898 | RM1,751 | RM147 | RM35,280 |
| RM400,000 | RM2,531 | RM2,335 | RM196 | RM47,040 |
| RM500,000 | RM3,164 | RM2,919 | RM245 | RM58,800 |
| RM600,000 | RM3,796 | RM3,502 | RM294 | RM70,560 |
| RM700,000 | RM4,429 | RM4,086 | RM343 | RM82,320 |
| RM800,000 | RM5,062 | RM4,670 | RM392 | RM94,080 |
Calculate Your Exact Savings
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Open Savings CalculatorWhen Is Refinancing Worth It?
Worth Refinancing If:
- Rate difference of 0.5% or more
- More than 10 years remaining on loan
- Loan amount above RM200,000
- Been paying for at least 3 years (past lock-in)
Not Worth It If:
- Less than 5 years remaining
- Rate difference under 0.3%
- High penalty fees still apply
Refinancing Costs to Consider
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Frequently Asked Questions
How much can I save by refinancing in Malaysia?
On average, Malaysian homeowners save RM300-700 per month by refinancing from 4.5% to 3.85% interest rate. On a RM500,000 loan with 20 years remaining, that is approximately RM245/month or RM58,800 total savings over the loan tenure.
Is it worth refinancing for 0.5% lower rate?
Yes, a 0.5% rate reduction is generally worth refinancing for loans above RM200,000 with more than 10 years remaining. For a RM500,000 loan, 0.5% lower rate saves approximately RM150/month or RM36,000 over 20 years.
How long to break even on refinancing costs?
Most homeowners break even on refinancing costs within 12-18 months. With typical costs of RM5,000-10,000 and monthly savings of RM200-400, the break-even period is usually 15-25 months.
What is the best refinance rate in Malaysia 2026?
The best refinance rates in Malaysia 2026 start from 3.85% at Public Bank, 3.88% at Maybank, and 3.95% at CIMB. Actual rates depend on your credit profile, loan amount, and property type.