Two banks have the best rate of 4.85% p.a. now

RHB

Its not just the lower interest. You would get the capital which you can further reinvest in asb as cash

Worth it

Yes. but if your interest rate is high anyway, you would recoup that "loss" within a year or two. For example, your current financing is 5.45%, and the best rate is 4.85%. The difference is 0.6%. If you have RM100,000 financing, you would have lost RM600 for that year alone. By refinancing, you would lose 1 month's dividend which is when calculated equals to:

RM100k x 6.5% /12 = RM541.

So you sacrificed a year's worth of dividend to save 0.6% interest each year.
Can you prove it? Or did you just pull it out of you behind?
We could do a sit down or I could try to explain it here.

Take this example, someone who refinanced at the 5th year, he would have earn back RM12k in capital.

So when he refinance, his capital would be RM200k (new financing), RM17k (the capital returned to him) and RM74k which is the dividend he has collected over the 5 years, for a total capital of RM291k. So going forward, in the next year his dividend would be calculated based on the RM291k capital.

Compare this to him staying put, his capital would only be be RM274k

You are essentially comparing 6.5% (expected dividend) on RM291k vs RM274k

Thank you.
yeap, but limited units  You have to queue and wait for your turn/chance

Sorry, RM12k, not RM17k, as per the example. I was so used with a 30-year calculation that the new 35-year calculation threw me off. Just to be clear, all numbers and figures here is based on loan cancellation after the 5th year, for an RM200k loan with a tenure of 35 years at a rate of 4.85%

1. When you refinance, you current bank will sell off the collateral. The collateral would not change in value, it would remain as RM200k (in this example that is).

2. When the collateral is sold back to ASNB, the bank will get RM200k worth of cash. The bank will only take whatever loan balance which is RM188k, and the balance of RM12k would be returned to you. 

3. When you get your new financing, you would get the full limit available to you, which is RM200k.

4. So now your capital is RM200k (new loan) + RM12k (returned capital from the previous loan) + RM74k = RM286k vs a capital of RM274k if you had remained with the current bank

5. When you choose to refinance, consider advantages below, if they are suitable, go ahead and do so:

a) lower interest rates than the ones you are currently experiencing
b) longer tenure (new products, longer tenure)
c) returned capital (some of you have mistaken taken long and expensive ASB-f insurance, and would receive very little capital, you can get the rest from the insurance companies later but that is besides the point)