Singapore Mortgage, Refinance home loan
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Singapore Mortgage: How to refinance a home loan in Singapore?
Many people are stuck in expensive home loans rates or mortgages because they do not bother to check the latest rates being offered. Some people are simply too busy with work to even bother or remember about it. Some people end up paying up to 2% p.a. more interests on a loan of $600,000. That is easily $12,000 a year and roughly $36,000 in 3 years.
People who can afford a $600,000 loan could earn between $50,000 to $100,000 per annum. Imagine, they work so hard in their careers, for 250 to 300 days a year for $100,000 and yet they forgot to structure their home loans so as to save them $36,000 in 3 years. That is like 3 months pay for many of them.
Why work so hard and then lose 3 months of pay for nothing?
Banks pay us separately so we have decided to offer this free of charge.
You may wish to email us at: -
You can contact us at loans@propertyBUYER.com.sg
People who can afford a $600,000 loan could earn between $50,000 to $100,000 per annum. Imagine, they work so hard in their careers, for 250 to 300 days a year for $100,000 and yet they forgot to structure their home loans so as to save them $36,000 in 3 years. That is like 3 months pay for many of them.
Why work so hard and then lose 3 months of pay for nothing?
Banks pay us separately so we have decided to offer this free of charge.
You may wish to email us at: -
You can contact us at loans@propertyBUYER.com.sg
Contents at a Glance
An overview
Home Loan
This page teaches you what to look out for in Mortgage refinancing in Singapore. As there are many possible pitfalls along the way, some potential savings may not materialize. For example when people switch from a Fixed Rate package to a Sibor Package, sometimes they forget that Sibor is a temperamental monster that fluctuates. Or they forgot about some packages that tie them into some unfavourable terms and conditions. Sometimes they go into some packages with hefty penalty on redemption. Sometimes people sign up to a Balloon interest schemes where the interest rate gradually increase, if the valuation falls, by the 2nd or the 3rd year, the person cannot refinance due to the fallen valuation and are locked into an expensive rate for several years.
Credit has tightened generally in the past few months, therefore there is no guarantee that a loan will be approved even if you go to a showroom and paid a 1% Option to purchase. If the banks refuse to lend you for your home loan, you will lose your 1% paid. If the property is $1,000,000 you will end up losing $10,000 dollars!!!
Credit has tightened generally in the past few months, therefore there is no guarantee that a loan will be approved even if you go to a showroom and paid a 1% Option to purchase. If the banks refuse to lend you for your home loan, you will lose your 1% paid. If the property is $1,000,000 you will end up losing $10,000 dollars!!!
Step 1:
Financial Vulnerability and Affordability Check
If you are buying a new home, it is important to stress test your finances to make sure you can afford the place. Do an affordability test at www.PropertyBUYER.com.sg/contactus.phpIf you are refinancing, you should also understand why you are Refinancing. Remember, refinancing may not make sense for everyone.
Understand your own financial situation. Are you comfortable with the current mortgage repayment? If you are, then Draw a Bubble in the middle. Draw a line outwards from the bubble on what could affect your ability to service your monthly installment. (E.g. If you lose your job or if you lose that big deal or commission, if the economy suddenly turns, if you get divorce (touch wood), if you fall ill, or if the bank raise interest rates, what is the shares I hold become worthless, etc.)
Very soon you will have a page full of Bubbles and linking to each other and you will more fully understand your own financial situation and what are the circumstances affecting your home loan serviceability.
It's really easy, try it.
Step 2:
Once you understand your financial situation, ACT on it. Does your current Home loan package expose you to some financial risks? Is it structured correctly? For example, you foresee a need to free up some cash for your child's education in 2 years, should you extend your loan tenure from maybe 15 years to 30 years? (If you qualify) and free up cash as SAVINGS?
Step 2 emphasizes on covering GAPS and risks, so think of what the package should be/do to give you that safety. If your current package is variable rate package, maybe you want a simpler job and less pay, but you cannot withstand the fluctuation in rates, you may want to consider locking in some rates.
Maybe you foresee a need for some emergency cash and your property qualify for equity loans, you may want to apply for an equity loan to stand-by the cash for the coming 1 to 2 years in case you need it. (Home Loan rates range from 1+% to 5%, this is the cheapest loan you can get. Personal loans are at least > 6%, credit lines > 10%, credit cards >20%)
Step 2 emphasizes on covering GAPS and risks, so think of what the package should be/do to give you that safety. If your current package is variable rate package, maybe you want a simpler job and less pay, but you cannot withstand the fluctuation in rates, you may want to consider locking in some rates.
Maybe you foresee a need for some emergency cash and your property qualify for equity loans, you may want to apply for an equity loan to stand-by the cash for the coming 1 to 2 years in case you need it. (Home Loan rates range from 1+% to 5%, this is the cheapest loan you can get. Personal loans are at least > 6%, credit lines > 10%, credit cards >20%)
Step 3:
Step 1 and 2 is to prevent you from getting emotional and swayed to some "cheap rates" and so on, sometimes Cheap is good, sometimes Cheap will hurt you. We feel that first and foremost, you must consider your own financial situation, then zoom in on what the things that can help you in a loan. Then step 3, take at least 5 to 10 working days to search for banks packages offered by various banks.
Compare the rates (using Apple to apple, then using apple to oranges and find out what feels best)
Compare the terms and conditions
Compare and understand the structure of the loan
Compare the subsidies offered
Compare the penalties and it's duration
Compare the exit clauses
Compare the features
Remember, many banks tell you it's a standard package, sometimes it is negotiable.
Compare the rates (using Apple to apple, then using apple to oranges and find out what feels best)
Compare the terms and conditions
Compare and understand the structure of the loan
Compare the subsidies offered
Compare the penalties and it's duration
Compare the exit clauses
Compare the features
Remember, many banks tell you it's a standard package, sometimes it is negotiable.
Get in Touch with us
Singapore: Free Refinancing Advice & Evaluation
Banks pay us a fee on successful home loan disbursed as they save on staffing. Therefore this service is FREE for you.
- Contact us
- Fill in a simple form or simply leave your contact details, we will contact you within 1 working day. We do not sell your contact details.
We only handle Singapore home loans and refinancing.
For Australian home loans, please drop us your contact, our partner will contact you within 3 working days. - Amazon Store - Singapore Property Books
- Read about Singapore Properties. Knowledge can prevent very costly mistakes.
Even if you are not a speculator, when you buy a home and want to sell it at some point in time, you become an involuntary investor. You say you buy to stay and yet you want your property to appreciate if you sell it 10 years down the road. So what does that make you?
A property investor. Exactly. - Read more of our articles
- We have more articles here, please feel free to browse. The content are mainly regarding the following: -
1) Home Loan tips and tricks and how banks operate
2) Property Buying tips and tricks
3) Singapore Economy
4) Global Economy - Singapore Spring Loan
- Singapore SME loans or Spring Loans. Get some credit to tide over the economic crisis. Singapore government has given higher loan loss backing to the bankers to facilitate Small and Medium Enterprises (SME) loans. This has enabled the banks to be a little more tolerant about lending, leave an email to loans@propertybuyer.com.sg and we will get a banker to call you back within 1 working day.
Illustrated on a YouTube video
Sub-prime is one of the problems facing the entire banking industry. Sub-prime affects the bank's ability to lend you money as it sucks up the bank's cash and many such home-owners can no longer afford to pay. When banks do not have that much liquidity (cash), then less banks will be willing to lend or have the ability to lend, that can affect the interest rates. Interest rates can of course impact your monthly home loan repayment. So it is important that home owners understand or at least get an idea of the magnitude of the Sub-prime problems on how it can affect your own wealth.
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Reader Feedback
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freeship
Feb 2, 2012 @ 7:03 am | delete
- With so many types of mortgage calculator available, it is crucial that you understand the difference between some of the most common types before committing to a 30 year note.
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Adversecreditremortgage2
Dec 13, 2010 @ 9:26 am | delete
- In having a credit remortgage, it is required to have an income during your application because it is needed so that you will be able to pay your debt, if you don't have any source of income you will not be approved for any application.
Adverse Credit Remortgage
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CHEN
Aug 15, 2009 @ 11:37 pm | delete
- I want to know the lowest HDB loan rate in singapore
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runespear
Jul 16, 2009 @ 1:22 am | delete
- could you give examples or indicators that show that bubble is approaching?
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bubbletea
May 28, 2009 @ 5:59 am | in reply to Singapore Mortgage | delete
- bubble is coming back. I pity those genuine buyers, they will have to fork out more
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Singapore Mortgage
May 20, 2009 @ 11:41 am | in reply to Chee keong | delete
- Dear Chee Keong, We are monitoring the situation closely. While we believe the statistics look bad at the moment, all signs are still pointing to a recession, we don't know why is the market behaving in such an upbeat way. We are trying to dig up leading indicators to try and understand whether this is truly the start of a recovery. If you have other supplemental data, you can email us at loans@propertybuyer.com.sg
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Chee keong
May 13, 2009 @ 2:46 am | in reply to Singapore_Mortgage | delete
- Where is the market headed? I am clueless. I have been eying a property since last year, the prices have come down, should I consider now? Seems like the market is up now.
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Singapore_Mortgage
May 2, 2009 @ 1:32 am | in reply to Singapore_Mortgage | delete
- The Straits Times index has risen above the 1900 level. This is the best level not see for many months. Given that the STI has a lead of about 6 months to the property prices, if this STI stays at this level, property prices will stabilize.
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P.S.
Are there people out there that does mortgage advice for Free? Yes, we do it for you, it's Free to you because the banks pay us a fee on successful loan disbursed as they save on front end costs. Our website is at
http://www.PropertyBUYER.com.sg
or you can contact us and fill in a simple form at
http://www.PropertyBUYER.com.sg/contactus.php
we will get back to you within 1 working day.
We are a Research Focused Mortgage Advisory Based in Singapore. We help busy individuals and families find Home Loans and Refinance packages that fit their family's needs, not simply the cheapest. We always aim to balance Risk and Benefit and suitability for the individual and families.
http://www.PropertyBUYER.com.sg
or you can contact us and fill in a simple form at
http://www.PropertyBUYER.com.sg/contactus.php
we will get back to you within 1 working day.
We are a Research Focused Mortgage Advisory Based in Singapore. We help busy individuals and families find Home Loans and Refinance packages that fit their family's needs, not simply the cheapest. We always aim to balance Risk and Benefit and suitability for the individual and families.
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Knowledge central on Properties
Knowledge prevents costly mistakes in Home ownership or property investing. If you want to invest in the Singapore Property market, you may want to read more about Urban planning and related Singapore property books.
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Grameen Foundation
We have homes, many people in poorer parts of the world have no homes, no food, no clean water, no education. While we always strive to get a bigger house, bigger car, bigger burger, bigger carpet and lament that we didn't manage to afford the latest sports car or how that house by the sea is out of our reach. Count our blessing that we still have food on the table, clean water to drink, nice hot shower and a small car.
When we count our blessing, we will then appreciate life more and take things in the proper perspective. Not simply more, more and more and Me, me and ME!
When we count our blessing, we will then appreciate life more and take things in the proper perspective. Not simply more, more and more and Me, me and ME!
Grameen Foundation uses microfinance and innovative technology to fight global poverty and bring opportunities to the world's poorest people. With tiny loans, financial services and technology, we help the poor, mostly women, start self-sustaining busines
Firefly Mission
Helping victims and people who need help
http://www.fireflymission.org is our favourite charity because it comprises 100% volunteers. There is no staffing, no offices, etc. 100% of the donation goes towards helping victims.
On the overseas missions to help with building of schools and re-build communities hit my floods, earthquakes, etc. The volunteers even pay their own airfares, their own accommodation, so all the money goes straight to the victims.
Some charities which had gotten into trouble of late, they pay their CEOs more than 500,000 a year in Salaries and only <10% of the money collected is actually used for the victims.
So do visit them.
http://www.fireflymission.org
This charity is registered in Singapore.
On the overseas missions to help with building of schools and re-build communities hit my floods, earthquakes, etc. The volunteers even pay their own airfares, their own accommodation, so all the money goes straight to the victims.
Some charities which had gotten into trouble of late, they pay their CEOs more than 500,000 a year in Salaries and only <10% of the money collected is actually used for the victims.
So do visit them.
http://www.fireflymission.org
This charity is registered in Singapore.
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maybank2u
Oct 26, 2010 @ 9:56 am | delete
- When refinancing a home loan, it's important to make sure to do your own research. You must understand the home refinancing basics to determine whether such a move is the right one for you. You must also be comfortable with the amount of time it will take for your overall savings to compensate for the cost of the refinancing.
Singapore Savings Account
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Singapore_Mortgage
Mar 30, 2009 @ 9:48 am | in reply to Benjamin Harrison | delete
- Hi Ben,
Thanks for your compliments. We are trying to help people from going simply for CHEAP packages because cheap may not be the best option. So at www.propertybuyer.com.sg we do not emphasize Cheap loans.
Do feel free to visit www.propertybuyer.com.sg and leave your links in the Forum page. Happy to link with you.
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Benjamin Harrison
Mar 23, 2009 @ 12:00 am | delete
- Nice to see others giving free advice, and cool to hear whats going on in Singapore. If you ever want to check out whats going on in Nashville feel free to check us out at
Refinance Nashville
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by Singapore_Mortgage
Singapore_Mortgage
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