In
recent years, in the banks’ effort to
compete for market share for the “relative
safe” mortgage loans, the banks have
reduced the interest rates as well as
introduced various innovative features for
their loan packages. Consequentially if your
existing loan is more than three years, it
is very likely that you would be able to
find another loan package which would reduce
your interest cost.
However
you may incur some costs in refinancing your
loan, more particularly the legal fees,
stamp duty and disbursements of the
discharge and loan documentation, the cost
of a valuation report on your property and
possibly the premium of a Mortgage Reducing
Term Assurance (“MRTA”). Such costs may
be substantial and have to be paid upfront
prior to the release of your new loan. And
as such some borrowers are prohibited from
refinancing their existing loans. For such
borrowers, some banks offer zero moving
cost loans whereby all or some of the costs
of refinancing are absorbed and paid by the
banks. Of course the banks would have
priced such costs into the interest rates of
their zero moving cost loans. You should
weigh the cost savings offered by a zero
moving cost loan against the financial
saving of the more attractive interest rates
of a conventional refinancing loans.
Why should I consider refinancing?
You
should consider refinancing when you want:
| | 1. |
A better interest rate |
| | 2. |
A lower monthly instalment |
| | 3. |
Additional funds (to consolidate your debts which attract high interest rates, ie, credit cards or for personal use) |
| | 4. |
Enjoy some tax advantage |
Making
the right refinancing decision
Ultimately,
whatever your reason for refinancing, it's
important to have a clear objective in mind.
You need to explore all the options and make
an informed decision as to which form of
refinancing is right for your individual
needs and overall financial situation.
Refinancing
with Mortgage Broker
We can
help you make that informed decision. Our
mortgage consultants will wade through all
the loans available in the market to
help you get the most suitable loan.
If your
circumstances have changed or may change in
the near future, you should seriously
consider refinancing. Call us on 603-77183600
today or book
an appointment online to arrange
a free no-obligation appointment. Our
mortgage consultant will call you to arrange an
appointment at a time and a place that suits
you.
Refinancing Checklist
| 1. |
Am I liable to pay any penalty for prepaying my existing loan? |
RM |
| 2. |
How much are the legal fees and disbursements? |
RM |
| 3. |
How much is the stamp duty? |
RM |
| 4. |
Do I need a valuation report? |
RM |
| 5. |
Am I required to take up an MRTA? |
RM |
| |
Total costs of refinancing |
RM |
| |
What are my savings over the term of the loan if I switch? |
RM |
Ask our mortgage consultant to recommend you the
latest refinancing loans which meet your
needs
|
