Back
Refinance My Home
Assessing your goal
Refinancing is moving your current home loan from one bank to another. The new bank will pay off your current loan and set you up with a new one, potentially with an adjusted principal amount and interest rate.
Start determining your reasons for refinancing. Common reasons are:
- Reduce monthly payments by snagging a better interest rate or stretching out your home loan tenure
- Getting extra cash for renovation, education or other needs, by tapping into your home equity (if your home has appreciated from the time of purchase)
- Shorten the tenure to cut down on the total interest payable and speed up paying off your home loan
Weighing the Pros and Cons
You'll also need to evaluate the home loan you already have.
- Dive into your Loan Agreement terms and make sure you have passed the lock-in period, so you don't incur penalty fees (lock-in periods usually range between 2-5 years)
- Consider the costs (such as valuation fees, legal fees, disbursement fees and stamp duty) versus the potential savings you'll get from refinancing
- Check your CCRIS/CTOS report to ensure no missed payments, as this will be taken into consideration by banks for application approval
Applying for new financing
Reach out to your chosen bank to start the application process. Make sure to:
- Inform the bank of your intention to refinance from another bank
- Request for the mortgage representative to spell out the fees associated with the application and choose if you'd like to pay them upfront or add them into your loan
- Choose your home insurance and answer the health questionnaire truthfully to avoid any issues with your home insurance
1 - 3 daysProcessing your loan
Once you've submitted your application, the bank will conduct an appraisal to assess your home's market value. This helps them decide the new amount that they can offer you for your home loan.
Don't worry, banks will handle this portion so all you've got to do is sit tight and wait for them to give you an offer.
1 - 3 daysAccepting your loan
It can take the bank 1-3 days to return a decision on your application. The bank can offer you up to 90% of your home's current market value. You can choose to refinance only what's left on your current home loan or cash out additional funds.
Just like with your first home loan, once it's been approved, you'll get a Letter of Offer. You can sign it digitally or set up an appointment with the bank to sign it in person.
5 daysSigning with the lawyer
Now your bank-appointed lawyer will prepare the loan documents for you to sign. You'll need to head to their office to sign the papers once it's ready.
Lawyer fees are usually 3-5% of the property price. Remember to also set aside 1-4% for stamp duty. You can choose to pay these fees upfront or add it into your home financing.
2 - 4 weeksGetting your health checked for home insurance
When applying for home insurance, you would have filled in a health questionnaire that asked about your daily habits, such as exercise and diet, and your medical history. Depending on the results, you might need to go for a check up to ensure you’re eligible for the home insurance you have chosen.
A clinic appointed by the insurance company will call you to set up an appointment.
2 - 4 weeksGetting your home valued
Your bank may need to get your home professionally valued to ensure your financing is accurate. Your mortgage representative will engage one of the bank's panel valuers, and they'll call you to set up a time for the inspection.
They'll prepare a written valuation report for the bank. You'll also receive a copy if you pay for the valuation upfront.
Valuation fees can range from 0.1% - 0.3%, depending on the property's value. You can choose to pay upfront or add it into your home financing.
3 - 6 monthsEnjoy your newly disbursed funds
Now that everything's been signed and stamped, the bank will first settle your previous home loan's outstanding balance. Any additional funds will then be disbursed into your bank account for you to use as you see fit.
You just need to wait for the SMS notification that the fund has been disbursed. Don't forget: once you get the SMS, you'll need to start paying your instalments.
apply for home financing online
Enjoy hassle-free home financing on the MAE app. Check eligibility & apply today!
finance your dream home renovation
Renovate your home with a loan amount of up to 120% of your property's value!
RM1.1 mil worth of home makeovers to be won!
Finance your home or your home renovation/decoration & stand to win RM1.1 mil worth of home makeovers
Dec 22, 2023 
08 min read 
