Short answer：Refinancing, caps and extra repayments can change rate exposure and cash flow, but they are neither free nor guaranteed hedges. Read repricing and prepayment terms first.
Understand the cap reference
A HIBOR mortgage with a prime-linked cap can still change when prime changes. For a fixed rate, verify its duration and the subsequent rate. Banks’ prime rates and advertised minimum rates should not be treated as identical offers.
Compare costs over the holding period
Include legal charges, penalties, rebate clawbacks and insurance costs. Retaining cash supports emergency spending; money prepaid into a loan may not be immediately borrowable again.
Before deciding
- Obtain written existing and replacement terms
- Compare the same balance and term
- Check reserves remaining after the change
Sources and method
Sources support the specific rules described. Checklists and hypothetical calculations are editorial explanations, not measured market results or individual approvals.
Revision：Removed unsupported experience, case outcomes and statistics; corrected the topic-specific rules and limitations described above.
Scope：General information only, not personalised legal, tax, immigration, admissions or investment advice.