Thanks CFA28 for the summon
1. The rates depend on the loan amount, generally, and I said this without guarantee, HLB and AMBANK are giving more competitive rates. In the end of the day though, the rates depend heavily on these 3 factors:

a) The bank you are applying for
b) The loan amount you are applying for
c) Your credit rating (good paymaster vs bad paymaster vs having no loans at all)

2. As for the legal fees, only HSBC that I know of can absorb the legal fees in its entirety, but the rates CAN (not necessarily) be worse than the other banks by about 0.2 to 0.3%. On the other hand, other banks do offer to include the legal fees into the loan amount, so your refinancing would be at a margin of 90% + 2~%.

- Faiz Azmi (+6 013  369 3993)

1. HLB would probably give the better rates, but all offers are only final when the LO is issued by the respective banks, and I really cannot speak for them although my firm empannel all 3 (we have 5 banks under us); I cannot guarantee that HLB would give the best offers. I usually apply up to 3 banks for each customer, any more than this is a waste and it may affect the customers future applications since these applications (whether they are approved or rejected by the bank, accepted or rejected by the customer) will be recorded in the CCRIS

2. The loan is equivalent to 90% (plus 2~3% for legal fees that can be financed into the bank) of the MV. Provided that these are your 1st and 2nd house. But if it is your 3rd house, your refinancing would be capped at just 70%

3. Typically, to calculate the difference without a calculator.... 0.1% in interest charge for RM100k loan amount is RM100 a year. So if the difference is 0.3%, for a loan amount of say, RM500k, the nominal difference is 3 x 100 x 5 = RM1,500 a year that you overpay (or save, depending on which bank you take la)

Typically the Legal fees is about 2% of the loan amount only. So at 0.3% difference in interest rate, in 6.66 years you would already  have  covered the legal fees, and if you go beyond the 6 years, you would be over paying the bank that initially covered your legal fees. The legal fee absorption is good if you are planning to sell or refinance the house within 6 years of purchasing/refinancing.

Sorry late reply, went for Friday Prayers

Refer to the table below

RHB has a good HL Calculator which is very transparent

The monthly installment is used to repay Interest first and the balance to principal

Under what reason you want to refinance?
If you take the current loan from past 5 years, it is not worth at all to refinance as you are delaying the time(if you are still young) and losing out on the interest.
Just do your self a calculation and see what is your principle is.

I only consider refinance if the interest rate between 2 loans are > 5%, 10-15 years back, housing loan are freaking high at 9-11%.
Else just continue to pay the current loan. Unless you have too much money to waste, then just take it.
If you feel under pressure with current situation, consider use credit card to make money.

Just say you are taking your loan in 2005 for 25 years, which you will settle it by 2030. BLR at that time should be about 6% - 0.5-1%, so 5% I guess? Hope you can state clearly on all this.
You already paying the loan for 9 years, which should be paying quite a sum of interest.
Use cash back credit cards to make money, buy groceries and sell it back, each month you can make about rm30-100.
And you no need to get any quotation, since refinance is still a "new loan".
At the end of refinance period, you will know that you paid extra interest and only can settle it after 2030.

Current is between BLR less 2.2% to 2.4%, depending on loan amount and credit profile

You can request for your Bank to revise the rate bit they will probably go as low as between 1.8% to 2.0%

Good luck and do bear in mind if the Banks revise their rate, it comes with a new Lock-in-Period

If the Banks refuse to give you a better rate, then u can give wild_card a call.

Do provide me your loan repayment period, interest rate and each month's cost.
But without looking at it also I can tell you the answer : you are wasting your money.
Just follow what I'm doing, quite effective to gain money without taking too much risk :
I have MBB's dual card with 5% cash back + 5 X TPs(which I convert it back to cash vouchers), that used for paying my TM, TNB bills that only cost me rm250 and some once a blue moon online shopping(now with USD so strong, I can forget about it). I need to spend at least rm1000 to get rm50 of cash back, so balance of the rm750 I use it to pay my wife's kindi TM and TNB bills, rm400, so I give less money to my wife. The balance rm350 is used to pay my uncle's TNB bill, so rm50 every month sure on hand.
Then for my groceries, petrol and Maxis are settled by HLB's STUPID card. My own spending on groceries are about rm200 a month, petrol about rm400(2 cars), so again I got extra rm400 that I can use it to make money.
With rm400, I can buy 13 bags of Milo 2KG soft packs for rm30(during promotion I sure take few)and then sell it for rm30.5-31. As I'm getting 8.25% of cash back, the actual price of the Milo is rm27.52, so I gain rm3 per pack or rm39.
But found a better deal, Libresse pads for rm2(original price rm8), already bought 20 packs and wait till the offer finishes then sell it back at rm8, so rm120 once sold out.
With both the cash back cards, I only pay rm1867.5 for rm2000 spending, which partly are my spending and others are used to make money. With rm132.50, you can use this money to offset your interest.
So this is how I free up my money.

Nope, to neighbors and traditional coffee shops.
Just go to Tesco, Giant, AeonBig and see whatever are cheap, just sapu them, then no more offer sell it back.
Let bank work for you, don't work for bank.
That's why I never encourage people do refinance unless really in deep trouble.
As your loan's interest rate and current loan offer's difference are about 1%, so just forget about it.

I've presented my numbers, the other guy has not done the same. Probably because he is afraid that his lack of knowledge in this matter would mean that his numbers are wrong in the first place.

Anyway, the simplest way to think about this is that: going forward 240 months from today, would you prefer to pay:-

(don't refinance) Scenario A: RM1,179.88x240month = RM283,171.20

(refinance) Scenario B: RM1,086.10x240month = RM260,664 in total

Listen to the other guy if you want the bank to earn RM22k++ in the next few years. I am not asking everyone to start refinancing their mortgages, everyone has their reasons when deciding on a financial maneuver. But when the numbers have been presented, and peer-reviewed for all to see, and the other guy still insist that he is right, then there must be something loose in his head.

I am betting that he is so red-faced by now and couldn't stand down to admit that he was wrong. But whatever it is, this is the true face of supersound, I'm glad we had this exchange, it has exposed him for what he is.

Nope, he paid more, about rm80-90k in actual.
So before you decide to do refinance, you need to know total interest paid for the new loan. Then must add together the total interest paid on the first loan together with the legal fees you need to fork out.
By ignoring the interest paid on first loan, for sure you see "savings" on the second loan.
And another myth to be busted again, if your loan amount are <rm200k, you may only get BLR-2%, not 2.4%, so 6.85-2=4.85.
5% sure can't be used for current, but for the past 10 years, the average interest was 5.25%(sure I can't use this average to do calculation but so do the so-called pro also by using 5.85%), but this is a reference to do calculations.
Financial institutions workers like to play with figures just to secure a business. We must be good on this.

Thank you for the vote of confidence. My calculations and arguments have also been vouched by other verteran forummers in both FINANCE, BUSINES and INVESTMENT HOUSE subforum as well as PROPERTY TALK subforum.

In any case, if you are interested to refinance, I would like to put forward my services to you. As a mortgage broker, my job is... to secure my clients the mortgage that they need. My services are free, I earn my pay from the banks. Thanks