Refinancing of Mortgage Loans

Refinance HDB loan, Singapore

One of the major benefits of refinancing is that it helps one save on interest charges. Apart from benefitting from the currently-existing low housing loan interest rates for loan refinancing in Singapore, one should also consider changing the loan tenor, changing the interest rate structure, and using existing investments to take up a loan against property value. By extending the tenor of the loan, you will be paying more in interest charges, but shall also service a lower-monthly installment in terms of money. If there is a big reduction in housing loan interest rates obtained from refinancing, you stand to benefit. One can also consider changing their housing loan to one with a fixed rate, which is a more sensible idea. In addition, if you happen to have great investments, it is advisable to take up a loan against it – to maximise personal financial returns.  Utilising funds from your home equity loan on investments with a higher return than the interest rates paid from a refinance home loan in Singapore makes it profitable for you.   

Mortgage Refinancing, Singapore

It always makes sense to restructure your current housing loan, however, when the offer from your current lender is not competitive with what’s available in the market, it’s better to find a new lender. At SMARTz, make this process easier for you, and enable you to switch lenders with ease. The main motive of taking up refinancing is to benefit you, helping to save interest costs compared to remaining with your existing home loan. Thanks to our services you can select the best refinancing deal for your specific needs island wide, without wasting too much time and effort to carry out enquiries.   

What is Refinancing?

Based on your existing home loan, you either renew the loan with your existing bank’s interest rates or to have other banks taking over the financing of the loan.

To enjoy the latest interest rates out in the market, which might be lower than your current interest rates.

Refinancing with your current bank is known as Re-pricing.

 

Why should I refinance?

OF COURSE it is to save more ‘$$’ ! Why spent the extra dollars paying higher interest rates when you can actually save it or even spent on other meaningful things in this world? Don’t you agree?

 

Am I Eligible for Refinance?

Follow this guide:

Check – remember to jot it down!

1. Which Bank offered me the mortgage loan?
2. When did I take up the loan?
3. What is your existing interest rate package?
   1. Fixed rates?
   2. Swap Offer Rates (SOR)?
   3. Singapore Interbank Offer Rates (SIBOR)?

      *More details on the difference of the interest rates, click here.
       

4. Are you still in the lock-in period?
   1. Yes. how many more months left?
   2. No. (You’re Safe)
       
5. Any Clawback? [If answer is ‘Yes’ to 4(2), please check ]

In Singapore, clawback applies usually in the first 3 years of the mortgage loan. The bank has the rights to get you to pay back the subsidies (valuation fees, fire insurance premiums etc.) if you decide to pay up the mortgage.

 

Should I refinance?

NOTE: If you are still in a lock-in period, you might want to check with your existing banks on the penalties involved if you want to refinance the loan with other banks.

 

Contact us! We will get the friendly bankers across all the various banks to provide you with all the necessary information (interest rates, Loan tenure, loan to value [LTV] etc.) so that you can Compare and Calculate the savings if you were to refinance.