Re-financing

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Dennis Ng
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Post by Dennis Ng »

it depends on what interest rate you're paying on this loan and any penalty payable if you switch to another bank.

Interest rates are still moving up so might make sense to refinance sooner than later.

You can email to us at info@motorinsurancesg.com the above info and we will provide you a no-obligation 3rd party analysis.
Cheers!

Dennis Ng - When You Master Your Finances, You Master Your Destiny

Note: I'm just sharing my personal comments, not giving you investment advice nor stock investment tips.
candy_chia
Investing Mentor
Posts: 1731
Joined: Sun Jul 17, 2011 11:36 am

Re-financing

Post by candy_chia »

With historical low home loan rate of 1.25% or lesser, it may be a great time to consider refinancing, even when one is still imposed with penalty of 1.5% on outstanding loan.

My current 5-years fixed-rate package with Maybank taken via housingloan.sg : (1st year -0.88%, 2nd year 2%, 3rd year - 2.25%; 4th year - 2.5%; 5th year - 2.5%).

There is a substantial saving of $8,600 by converting to their 3 years fixed rate loans.
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candy_chia wrote:Hi Serene,

Have been a loyal customer of Dennis' housingloan.sg for my current and earlier flat's bank loans.
sereneloong wrote:
I'm so glad that u can save as much as $8600! Kudos to you for taking action and finding out the actual savings!

You may already have thought of this but I shall mention it, nonetheless. Why not use the services of an independent mortgage broker like Dennis' housingloansg.com to shop for the most attractive new loan for you? You can tell them your criteria like no lock-in etc. After all at any one point, Dennis has estimated that there are some 130 loan packages in the markets if you add up all the permutations of loans by each bank/financial institution. Hard for u to research all but easy for a specialist like housingloansg.com Plus the service is free to you. They will take their commission from whichever bank you end up choosing.

Let's keep sharing as our Sifu would have wanted!
Serene
P.S. I will continue to make useful Real Life Theory videos as inspired by Dennis and put them at http://www.reallifetheory.com
candy_chia wrote:
Called up Maybank to enquire whether it is cost effective to refinance my remaining $466k housing loan. Surprisingly, after deducting the 1% penalty ($4,647.90) and conversion fee ($500), there is a substantial saving of $8,600by converting to their 3 years fixed rate loans. (1st year - 1.25%, 2nd year - 1.35% and 3rd year - 1.45%)

Not keen in their floating rate package as there is still 2 years lock-in period involved (1st year - 0.98%, 2nd year - 1.48%).

Cheers!
candy_chia wrote:Hi Serene,

I believe your loan should have lower to $500k plus by the time you refinance, that is why it is published as $1.8k (actual figure of monthly instalment should be $1,861 as you stated).

Would love to enjoy the rock-bottom interest rate, but too bad took a 5-years fixed rate loan with Maybank, so will be liable for 1.5% penalty if refinance now since only in 2nd year of financing! :cry:
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