Calculate potential savings from refinancing your mortgage including penalties and costs.
Monthly Savings-
Break Even-
Total Savings-
Total Costs-
Current Total Interest-
New Total Interest-
How to Use the Refi Calculator
Key Takeaways
A break-even of 18 months or less almost always makes refinancing worthwhile — that leaves years of savings ahead even if you sell earlier than planned.
Legal fees ($2,500–$3,500) and valuation ($500) are the main switching costs — compare these directly against your monthly saving to gauge payback speed.
Check for clawback before switching: subsidies received in the first 2–3 years of your current loan may need to be repaid, significantly extending break-even.
Extending your loan tenure on refinance lowers your monthly payment but can increase total interest paid — always compare total interest cost, not just monthly figures.
What It Does
Should you refinance your mortgage? Compare your current loan against a new offer, factoring in lock-in penalties, legal fees, valuation costs, and any subsidy clawback. See your monthly savings, break-even month, and total interest saved over the remaining tenure.
You can find this calculator in the Calculators tab on ShiokNest. It updates results instantly as you adjust inputs — no waiting, no page reloads.
Why It Matters
Interest rate savings compound over years of mortgage repayment. Even a 0.5% reduction in your rate can translate to tens of thousands of dollars in total savings over a 20-year loan. This calculator matters because:
How It Works
Navigate to Calculators — Click the "Calculators" tab in the ShiokNest navigation bar. All 26 calculators are grouped by purpose for easy access.
Select the calculator — Choose "How to Evaluate Mortgage Refinancing" from the calculator list. You will see default values already loaded so you can explore immediately.
️ Enter your values — Replace the defaults with your own numbers. The key fields are:
Review the results — The calculator updates instantly as you change any input. Monthly savings, break-even month, total savings, and a cumulative payment comparison chart.
Run what-if scenarios — This is where the real power lies. Change one variable at a time to see its impact. For example, try increasing the interest rate by 1% or extending your holding period by 5 years. Note how the results shift.
Compare and decide — Run 2-3 different scenarios and note the results. This gives you a range of outcomes to base your decision on, rather than relying on a single projection.
Examples
Meet Amanda, who has $800,000 outstanding on her mortgage at 3.5%. Her lock-in period h…
Inputs
Outstanding Balance
$800,000
Current Rate
3.5% p.a.
New Rate
2.6% p.a.
Remaining Tenure
20 years
Legal Fees
$3,000
Valuation Fee
$500
Results
Monthly Saving
$361/mo
Break-Even Point
10 months
Total Saving (net of fees)
$83,230
How to read this:
The math: By switching from 3.5% to 2.6%, Amanda saves $361 per month. After accounting for legal fees ($3,000) and valuation ($500), she breaks even in just 10 months. Over the remaining 20 years, the net saving is approximately $83,230. The verdict: With a break-even of 10 months and 20 years of savings ahead, refinancing is a clear win for Amanda. The calculator shows this analysis instantly for any rate combination.
Tips & Pitfalls
Expert Tips
Use realistic assumptions — Singapore condo appreciation has historically averaged 2-4% per year. Avoid overly optimistic projections. When in doubt, use 3% as a baseline.
Wait until your lock-in ends — Refinancing during lock-in triggers penalties (typically 1.5% of outstanding balance). The savings rarely justify the cost.
Check for clawback — Some banks claw back subsidies (legal fee reimbursement, cash rebates) if you refinance within 2-3 years. Factor this into your break-even calculation.
Common Pitfalls
Focusing only on the monthly saving — A lower monthly payment is meaningless if penalties and fees exceed the total savings over the remaining tenure.
Forgetting the break-even timeline — If the break-even is 18 months but you plan to sell in 12 months, refinancing loses money.
Frequently Asked Questions
When is the best time to refinance my mortgage in Singapore?
The optimal window is during the last 3 months of your current lock-in period. At this point you can begin the new loan application (which takes 4–8 weeks) so the new package activates the moment your lock-in expires — avoiding both clawback and any "rate drift" period at your current bank's higher post-lock-in rate. If you have already exited your lock-in, refinance immediately — every month you wait is a month of avoidable interest at a higher rate.
What are the typical costs involved in refinancing?
Main costs: legal fees ($2,500–$3,500), valuation certificate ($500), and any clawback if your current bank provided subsidies in the first 2–3 years. Some banks offer to absorb legal and valuation fees as a subsidy on the new package — always ask. If you received a $2,000 legal fee subsidy from your current bank 1 year ago and are refinancing now, that $2,000 is typically clawed back. Factor all of these into the break-even calculation.
Is it worth refinancing if I only have 5–7 years left on my loan?
Possibly, but the maths gets tighter. On a short remaining tenure, the total interest savings are smaller, so switching costs consume a larger share of the benefit. Run the break-even calculation: if your monthly saving is $200 and switching costs $3,500, break-even is 17.5 months — still worthwhile if you have 5+ years left. But if monthly saving is $80 and your outstanding balance is low, the hassle and fees may not be worth it. Use this calculator with your exact figures to get a clear a...