Refinance / Cash-out Calculator

Refinancing means transferring an existing mortgage to another bank to obtain a better interest rate, cash rebate or cash-out funds. Cash-out refinancing means increasing the mortgage loan amount on an existing property to turn the appreciated value into cash. Both are common financial tools for Hong Kong homeowners and can reduce mortgage costs or unlock property equity for other purposes such as renovation, investment or working capital.

The biggest attraction of refinancing is the cash rebates and low-rate offers banks use to win customers. Some Hong Kong banks currently offer cash rebates equal to a percentage of the loan amount and waive certain fees. However, refinancing involves legal fees, valuation fees and early repayment penalties, so you must calculate carefully whether it is worthwhile. Cash-out refinancing requires sufficient remaining equity in the property and must meet the bank's debt servicing ratio requirements.

HK FinBox's refinancing / cash-out refinancing calculator lets you enter your existing mortgage balance, property valuation, new interest rate, cash rebate, fees and cash-out amount to calculate the change in monthly payments after refinancing, the cash released and the total savings. The calculator helps you fully assess the financial impact of refinancing or cash-out refinancing.

Before refinancing, check the penalty period with your existing bank; refinancing within the penalty period may cost several months' interest. Also, if the cash rebate exceeds a certain percentage of the loan amount, the HKMA may require it to be deducted from the loan amount. Compare terms from several banks and weigh the interest savings against all costs.