Refinance in Singapore
Refinancing your home loan can often help ease the burdens of the high interest amount you might currently pay. However, you must also be aware of and recognize all the refinancing costs involved, and most financial institutions won’t remind you when it’s time to refinance (after all, it’s not exactly in their best interest to do so!). If you’re considering to refinance your housing loan, SMP Mortgage Brokers are here to help – at no cost to you.
Advantages of Refinancing
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When is the best time to refinance your housing loan?
Determining the best time to refinance your home loan depends on a several factors, including:
- the length of time you intend to keep the mortgage
- Singapore and world market condition
- the interest savings involved in refinancing
- any costs you may incur in taking on the new mortgage loan
SMP’s Tip: Generally, the rule of thumb is once your lock-in period is over, and if the interest savings you’ll receive by refinancing is substantial, it’s worth exploring. There are also times when banks come out with penalty subsidy packages with attractive housing loan interest rates.
Are you unsure of whether now is a good time to look into refinancing? An SMP Broker is waiting to help you decide. Remember – our services are for free.
“At SMP, we will be there for all your Mortgage Refinancing Needs”
The following scenario describes a typical mortgage refinancing situation.
In Singapore, Mr. & Mrs. Koh have a housing loan with an outstanding loan amount of $800,000. The remaining loan tenure is 20 years. Their 3-year lock-in period with their existing bank will expire in 3 months.
Interest Package Comparison
|Existing Bank package||New Bank Package||Interest Saving|
|1st Year Interest||3.5%||2%||1.5%|
|2nd Year Interest||3.5%||2.25%||1.25%|
|3rd Year Interest||3.5%||2.5%||1%|
If they were to refinance to the new package offered by the new bank over a period of 3 years, Mr & Mrs Koh will have a potential interest savings of: $29,000
For the 1st year, their monthly installment will be reduced from $4600 to $4,000.
Want to figure your own savings? Use our refinance calculator.
Your One-Stop Mortgage Solution – Your Interest | Our Business
At SMP, we take pride in taking care of our clients’ best interests – after all, it’s the core of our business. We provide a door-step appointment, comprehensive mortgage analysis, easy-to-understand and non-biased loan package comparisons – and we even assist you in monitoring your existing loans to identify when refinancing would be beneficial.
Engage an SMP Mortgage Broker today for your refinancing needs. We’re here to help …and at absolutely no cost to you!
To estimate your home loan monthly repayment, try our refinance calculator now!