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Singapore Refinancing Your Home

Felicia Chew — Sat, 06 Mar 2010 20:58:29 +0000

Even though refinancing a mortgage can save you thousands of dollars you will be stunned that not that many individuals in reality take the time to do it. If you considered the time it requires and figure out the cost saving and equate that to how much you get paid per hour it could be like not going to work for several weeks. Consider the following aspects so that you can see how easy it is to refinance your home loan today.

Current Mortgage Interest Rate

It is decidedly a good indication for you to research refinancing when your current interest rate is higher than available mortgage packages on the market. A first step to take is to go back to your current bank or financial institution and ask them to revise your package, otherwise known as repricing. If your lender comes back with an offer, it will ordinarily be better than your existing one. You can then compare this offer with offers from other lenders to see whether you should switch or stay put.

Lock-in and Clawback Periods

When you take up a mortgage, there may be a lock-in period where your housing lender will charge you a penalty fee, normally a percentage of your outstanding loan amount, if you were to fully repay your home loan. Almost all mortgages also come with a clawback period where the lender will claim back “freebies”, such as legal expenses, that they “gave” you when you take up your loan (Note: lock-in period is separate from clawback period). It may not be worthwhile for you to refinance due to such costs.

Loan Quantum

The larger your loan amount, the greater your savings for the same decrease in interest rates. For instance, 1% on a loan of S$100,000 is much less than 1% on a loan of S$500,000. However, fixed cost to refinancing, which represents mainly of legal fees, do not vary much with loan quantum. The difference between your current and refinancing interest rates, therefore, has to be bigger for a relatively smaller mortgage as fixed cost eats into a more substantial portion of your interest rate savings.

Perceived Interest Rate Movements

Your view on how interest rates is moving can be a factor when thinking whether you should refinance. If you are presently on a fixed rate package and think interest rates are dropping, you may want to refinance to a floating rate package. Conversely, if you are on floating rates and believe interest rates are skyrocketing, converting to fixed rates may be a solid choice.

Personal Financial Assessment

If there is a change in your financial state, you may want to vary your package details via refinancing. For instance, you are opening your own company and do not want unpredictability in other areas. Give some consideration to taking up a fixed rate package. Maybe you want cash to invest in another property. Consider increasing your loan quantum. Or your monthly income has increased and you want to reduce interest loan payments. Consider reducing your loan tenure.

Consider calling us today if you are looking for refinancing in Singapore. We can save you a lot of money plus give you the latest advice all for free.

Article Source: Singapore Refinancing Your Home

Related Blogs

What Should Foreigners Do If They Wish To Buy Houses In Singapore?

Avery Howard — Wed, 17 Feb 2010 15:04:06 +0000

Foreigners may find staying in a hotel room for the whole duration of their stay in Singapore to be a very expensive predicament. The alternative answer to this dilemma is for the expats to purchase residential properties in Singapore.

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The Singapore government officials do not prevent expatriates from buying residential properties in the country.

The Residential Property Act of Singapore basically supports Singapore nationals in their purchase of their own residential properties by giving reasonable rates. Also, the act encourages expatriates who have made an important contribution to Singapore’s economic prosperity to buy residential properties in the city-state.

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Even without any permits or approval from the Singapore government, a foreigner may buy non-restricted residential properties. Below are some samples of non-restricted residential properties:
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- apartment flats within a structure that is not higher than 6 floors – condominium units in authorized condominium development sites stipulated in the Planning Act – a lease term on a restricted residential property; the contract should not go beyond 7 years

Official sanction from Singapore’s Minister of Law is needed by foreign nationals who wish to own all units in an apartment or condominium in an accredited development property.

Likewise, a foreigner cannot purchase or acquire residential properties that are categorized as restricted not unless he or she has been issued an official sanction by Singapore’s Minister for Law to acquire any such residential property.

Under the Residential Property Act of Singapore, the following are categorized as restricted residential properties:

- a vacant residential lot – townhouses, separate or semi-linked homes, or terraced houses built on residential properties – lots not authorized for condominium development under the Planning Act

The foreigner who wishes to purchase a restricted residential property must fill out a form and then send this, along with the requisite supporting papers, to the Singapore Land Authority. The agency is accountable for assessing the foreign national’s eligibility to buy a restricted residential property and for granting the official sanction if it finds the expat’s qualifications satisfactory.

Learn more about a premier housing loan advisory firm, providing housing loans with free mortgage broking. Don’t reprint this exact article. Instead, reprint a free unique content version of this same article.

Buying A House?

Aubrey Reynolds — Tue, 16 Feb 2010 15:35:34 +0000

Congratulations! You are now financially capable of buying a house. And you have set your heart on just the place you know could be your home where you can establish a happy life with your loved ones.

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But hold on in there for a moment. Before you take that housing loan or pay off the down payment with your saved up money, you have to consider a few issues. After all, purchasing a house is going to be the greatest expenditure you will make in your life. You would not wish to regret this decision.
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People tend to let their emotions determine their decision-making in terms of house purchase. They ignore glaring issues that should have been addressed right at the start. Then, when the dust settles after moving in, they find themselves disenchanted and angry with their first home.
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Thus, here are some matters to closely look into in selecting and buying a house to call your own.

1. Consider the neighborhood

During that one visit to a neighborhood, you had an impression that it’s peaceful and safe. If preparing to buy a private property, try dropping by the neighborhood at various times of the day to see the actual comings and goings in the locality.

2. Consider the community

We know that we can safely rear our kids in a neighborhood where neighbors take care and look out for each other.

3. Consider the structural defects

What you are looking at could already be your dream house. It is still to your benefit, nonetheless, to closely check the house for signs of defects, leakages, plumbing problems, or pest invasions.

4. Consider the space

Since most of the time people buy their first house because they are establishing their own families, they must ensure that their home is spacious enough for additional family members.

5. Consider the price

Your bank or housing loan institution will appraise your income, credit history, employment track record, your available assets, etc., and through the the information will determine the amount that they will be able to lend you. You have to obtain a pre-approval on your mortgage in order to know if you can afford to purchase the house you’ve set your heart on.

Find out more about a premier housing loan advisory firm, providing housing loans with free mortgage broking. Get a totally unique version of this article from our article submission service

Refinancing Your Home

Andrew Gan — Fri, 18 Dec 2009 15:44:01 +0000

When it comes to housing loans, numerous people do not refinance. A substantial number are unaware they have the choice of changing their loan to different financier; others are simply indifferent. They stick with their very first lender and the “reward” for such loyalty tends to be higher interest rates. Due to the magnitude of mortgages and the tenure that the mortgage is amortised over, the interest we are speaking about here can easy stretch from 1000′s to 100,000′s of dollars. Take a look at the following factors to see whether it’s time for you to consider refinancing.

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Current Interest Rate

It is decidedly a good indication for you to explore refinancing when your current interest rate is higher than available loan packages on the market. A first step to take is to go back to your existing banking company or financial institution and ask them to revise your package, otherwise known as repricing. If your lender comes back with an offer, it will commonly be better than your current one. You can then compare this offer with offers from other lenders to see whether you should switch or stay put.

Lock-in and Clawback Periods

[ad#linie]
When you take up a housing loan, there may be a lock-in period where your mortgage lender will charge you a penalisation fee, ordinarily a percentage of your outstanding loan value, if you were to fully repay your home loan. Almost all mortgages also come with a clawback period where the lender will claim back “freebies”, such as legal subsidies, that they “gave” you when you take up your home loan (Note: lock-in period is separate from clawback period). It may not be worthwhile for you to refinance due to such costs.

Loan Quantum

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The larger your loan amount, the larger your savings for the same decrease in interest rates. For example, 1% on a loan of S$100,000 is much less than 1% on a loan of S$500,000. However, fixed cost to refinancing, which comprises mainly of legal fees, do not vary much with loan quantum. The difference between your existing and refinancing interest rates, therefore, has to be bigger for a relatively smaller home loan as fixed cost eats into a more substantial share of your interest rate savings.

Perceived Interest Rate Movements

Your view on how interest rates is moving can be a factor when considering whether you should refinance. If you are currently on a fixed rate package and think interest rates are dropping, you may want to refinance to a floating rate package. Conversely, if you are on floating rates and believe interest rates are skyrocketing, changing to fixed rates may be a effective choice.

Individual Financial Appraisal

If there is a change in your financial state, you may want to alter your package details via refinancing. For example, you are opening your own business organization and do not want unpredictability in other areas. Give some thought to taking up a fixed rate package. Maybe you want cash to invest in different place. Consider raising your loan quantum. Or your monthly income has increased and you want to reduce interest loan payments. Contemplate reducing your loan tenure.

Consider calling us today if you are looking for refinancing in Singapore. We can save you a lot of money plus give you the latest advice all for free.

Find out more about a premier Housing Loan advisory firm, providing Housing Loans with free mortgage broking. Get a totally unique version of this article from our article submission service

Variable Or Fixed What Will Be The Decision

Adam Bell — Thu, 17 Dec 2009 19:50:06 +0000

Once you decide to take up a home loan, the next thing that storms your head is selecting between fixed and floating rate of interest. It is easy to get dumbfounded at this point if you are not financially educated.

Normally, when news media splashes reports on banks raising home loan interest rates in and their affect on Monthly Installments, you may take for granted that it is better to select fixed mortgage rates. In fact, your banker may also suggest you to go for the same.

Now ideally as it should be, we take for granted that once you select fixed rate plan for yourself the rate of interest will remain unchanged for the entire period you have fixed the interest rate for irrespective of any incidental increase in the same. But actually this is not necessarily the case.

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Here we demystify the nature of fixed interest rate housing loan transaction for you so that you can make an educated decision over the matter.

* Check the small print of a loan. The bank has the right to serve you 30 or 60-days notice that it intends to increase its rates.

* The bank’s first-year rates are binding on the bank only for that short period of 1 or 2 months. The 2nd-year home loan rates are not binding at all. Neither are the bank’s 3rd-year loan rates.

* Force Majeure Clause

So, while you read your home loan agreement papers, you can spot statement like this:

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“Provided further that from time to time, the bank may in its sole discretion alter the rate of interest suitably and prospectively on account of change in the internal policies or if unforeseen or extraordinary changes in the money market conditions take place during the period of the agreement.”

This is called Force Majeure Clause that enables the bank to undertake appropriate alterations in the interest rates on home loans they sanction to their borrowers.

So remember to look at refinancing every couple of years so that you do not pay too much. If you select a good home loan company you can save a lot of money over the life of your mortgage and in most cases the consultation cost is free.

Find out more about a premier Housing Loan advisory firm, providing Housing Loans with free mortgage broking. This and other unique content ‘housing loan’ articles are available with free reprint rights.

Reinvest Your Home

Myra Hopkins — Thu, 17 Dec 2009 14:22:52 +0000

Most of the people don’t know that take can change their loan to other investor; others are simply uninterested. They tend to be loyal with their very first lender but they don’t know that such loyalty will bring higher interest rates. Because of increasing number of housing loans and amortization period, the interest can range from thousands to hundreds of thousands of money. The following factors may help you consider reinvesting your home.

Latest Interest Rate

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If your latest interest rate is higher than other housing loan packages, consider reinvesting. Go back to your current bank or financial institution and ask them to reprice your loan package. Most likely, your lender will give you an offer, which is better than your current one. Make a comparison between this offer and with offers from other lenders to see whether you should switch or stay put.
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Lock-in and Clawback Time Periods

Lock-in period is when your lender give you a penalty if you want to fully repay your loan. Many housing loans have drawback period. This is when the lender will take back what they gave you when you get your housing loan. Lock-in period is different from clawback period. Because of this, reinvesting is not recommended.

Loan Quantum

If the amount of your loan is larger, the savings for the same decrease in interest rates will also be also larger. However, fixed cost to reinvesting, which comprises mainly of legal fees, does not vary much with loan quantum. The difference between your current and reinvesting interest rates has to be larger for a relatively smaller loan as fixed cost consumes into a more significant portion of your interest rate savings.

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Identify Interest Rate Movements

Analyze how interest rates flow. If you are currently on a fixed rate package and believe interest rates are dropping, you may want to reinvest to a floating rate package. Conversely, if you are on floating rates and believe interest rates are increasing, switching to fixed rates may be a good choice.

Own Financial Evaluation

Think of reinvesting when your financial states change. Try to get a fixed rate package. Think of increasing your loan quantum. When your monthly income increased and you want to decrease interest payments, try to reduce your loan tenure.

Learn more about a premier Housing Loan advisory firm, providing Housing Loans with free mortgage broking. Get a totally unique version of this article from our article submission service