Assuming that the outstanding balance is now RM350,000, your monthly instalments are now at RM1,633.Ĥ. The monthly instalment is around RM1,771.Īfter paying this for 10 years, you decide to refinance the property at a lower rate (4.35%) over the same tenure length. for 35 years (flexi loan, 90% margin & lock-in period of 5 years). You get a new housing loan for RM400,000 with an interest rate of 4.8% p.a. This can leave you with more disposable income for your monthly expenses.Į.g. If you face any problems with your monthly cash flow, taking up a refinancing scheme with a longer loan tenure can help reduce the amount you pay as monthly instalments. You can therefore use the RM400,000 to pay off the mortgage, and keep the remaining RM50,000 for your own use. You are eligible to refinance your home at a 90% margin out of RM500,000, which totals to RM450,000. However, the current valuation of your property is RM500,000. You have an outstanding balance of RM40,000 on your mortgage. Over time, you too can see a value growth on the assets you own, and home refinancing is a way to directly benefit from this.Į.g. or RM625.00 per month.Ĭapital growth is the rise in asset value, including property. With this interest savings, you can save as much RM7,500 p.a. Say the value of your property is RM300,000.

Through refinancing, you will get a total interest savings of 2.5% throughout the rest of the loan tenure. A bank offers you to refinance your home with a new interest rate of 4.35% p.a. Say the fixed rate on your mortgage is 6.85% p.a. Leveraging on the changes in the Base Rate (that influences the interest on home mortgages), home refinancing is the best way to reduce your monthly mortgage instalments particularly if you apply while the base rate is lower or while the bank is offering a better interest rate.

Refinance rumah bank rakyat loan rumah