MPIG
  • Home
  • New Property Launch
    • Best Investment 2022 PJ Damansara Low Risk Low Entry Price High ROI
    • 2022 PJ Rumah Mampu Milik RM270k Damansara
    • Bangsar South 2 Rooms from RM390k BELOW Market Price
    • 10% ROI PJ Project near Ikea and One Utama Mall
    • Mid Valley Seputeh New Launch
    • Pavilion Damansara Heights 柏威年 白沙罗岭 马来西亚 吉隆坡 精选楼盘
    • 马来西亚RM300千的PJ屋子-首购族,年轻人月入3千能买房
    • 2021 Penang Most Awaited Project
    • 2021 New Launch - KL Metropolis
    • 2021 PJ Spacious and Affordable 5 Star Condo
    • Freehold LRT Linked 3 Room Suites in Glenmarie
    • New SPACIOUS Kepong Landed 6 Room 6 Bath
    • Bangsar Last Piece Land New Launch
    • Avara Seputeh (Mid Valley)
    • Project Announcement Registration. Malaysia New Property Launch
  • Existing & Past Project
    • 2020 Lowest Risk & Price in Klang Valley with Great ROI
    • Kiara East Suite Dex
    • 2019 SAFEST PROFITABLE HIGH CASHBACK INVESTMENT
    • Best Property Investment Projects in 2018
    • KL City Freehold Spacious Affordable 3 room Project
    • Jalan Kuching Freehold New Office & Shoplot
    • Jalan Ipoh New Freehold Shoplot & Offices
    • RM300k KL Sentral New Prelaunch
    • The Olive Condo, Sunsuria City
    • Prelaunch Landed House Bukit Rahman Putra
    • RM260k No Downpayment Puchong South Suites
    • PJ North RM400k High Cash Back Project
    • Denai Sutera @ Alam Sutera, Bukit Jalil
    • First Phase of Banting New Township
    • Neu Suites 3rdNVenue @ Embassy Row by Titijaya & CREC
    • COURT 28, Jalan Ipoh KL City New Property Launch Service Apartment. Malaysia New Property Launch
    • Semanja Kajang New FREEHOLD Kajang Double Storey Houses. Malaysia New Property Launch
    • M Suite @ Desa Park North
    • BIJI LIVING @ Sek 17 PJ City by Conlay. Malaysia New Property Launch
    • Amani Residence Bandar Puteri Puchong New Freehold Service Apartment. Malaysia New Property Launch
    • SFERA RESIDENCY @ Puchong South. Malaysia New Property Launch
    • KL North Last Release
    • PreLaunch Freehold Double Storey
  • LAND
  • News & Articles
    • Educational Articles
    • Ho Chin Soon Greater KL Map Sharing
  • Other Reference Link & Services
    • Land Sale Malaysia
    • Malaysia New Property Launch
    • Lets Buy Property Malaysia
    • Other Professional Services
  • Referral
  • Career
  • MPIG
    • About Us
    • Contact Us
  • Get Professional Advice
  • PJ八打灵2021全新地产项目分析手册

News Updates & Article sharing

Loan Refinancing Basics & Tips Used by Experts

9/10/2015

1 Comment

 
Picture
Do you know the term Refinancing? Its one of the powerful investment skill and here's some information about it. Some may agree on refinancing and some maybe not. Its individual preference, there is no right or wrong.

Refinancing basics and tips used by experts
BY LOANSTREET.COM.MY

Refinancing your mortgage is something you should re-visit every once in awhile if you have a property loan. In this article, we explore the basics of property refinancing and some tricks from the experts.

Know your objective
Firstly, before refinancing, it is important to know why you are doing it. Knowing your objectives makes it easier to know what to compare and what to watch out for. It usually falls within these 4 categories:

1) Get overall monetary savings. Usually from interest rate reductions against your existing home loan.

2) Withdraw cash for other usage.

3) Debt consolidation e.g. credit cards, personal loans, overdraft facilities, car loans. Housing or property loans have the cheapest interest rates compared to other types of loans and credit facilities.

4) Change the installment repayment pattern to suit your goals / ability.
Refinancing basics and tips used by experts

Beware of the dog
Once you know why you want to refinance your house / property, there are potential costs and pitfalls to consider.

1) Lock in periods on your existing loan:

Terminating your loan prematurely may result in early exit penalties.
Penalties typically range from 2%-3.5% of the original loan amount.
If you were on Zero Entry Cost packages (e.g. Valuation Fees, Legal fees absorbed by the bank), there are potential claw back charges.
It is safe to start the refinancing application process 4 months before the lock in period expires. You can usually get away with no exit penalties.

2) Loan redemption fees:

Paid to lawyers for the documentation necessary to redeem a loan (also known as Perfection of charge).

3) Termination of existing MRTA policies (not applicable to MLTA):

Typically, MRTA policies are not transferrable to the new loan, except if you refinance with the same bank.
Insist to cash out on the surrender value of your existing MRTA policy. This will bring down the total redemption sum. Many people neglect to take this step.

4) Loan documentation fees for the new loan:

You can know your legal fees of refinancing by using our Home Loan Calculator.
You may not get the best possible interest rates or get locked into a longer lock in period. But consider Zero Entry Cost (ZEC) packages if you want to refinance for no money down at all.

Look around
After you know your refinancing costs, start looking around for the best home loan/commercial property loan packages available. The interest rate comparisons will be especially useful for those seeking monetary savings and those looking to consolidate their debts (credit cards, personal loans, overdraft facilities).

Aside from that, the maximum loan tenure and other product features e.g. flexi, payment holidays, fixed rates will be especially useful for those seeking to reduce their monthly installment commitments. If you are looking to cash out for other usages e.g. renovations, other investments, pay attention to the property valuations offered by banks.

Alternatives to Mortgage Refinancing
If you are looking for monetary savings, your existing bank may be open to restructuring your existing loan with better interest rates, subject to conditions. Check with them before you go hunting. If you are looking to cash out, your existing bank may be able to offer Top Up Loans. Some also have what is known as a Renovation Loan. Enquire with them, or submit an application to Loanstreet.

If you only want a small amount of cash, a Personal Loan may be a better option to avoid all the legal fees involved in refinancing. It is also faster.

Other tips and tricks
By refinancing from Conventional to Islamic packages, you can enjoy 100% stamp duty waiver on the existing loan balance. Factor this into your decisions.

Conclusion
Before refinancing, determine your objectives. Know the costs involved, and check with your existing banks on restructuring or top up possibilities. Use Loanstreet’s Home Loan Refinancing Comparison tool to compare your available options. Once you are happy and certain about doing a mortgage refinance, you can continue by submitting an application to Loanstreet for the fastest and best results.

>> Loanstreet.com.my is a website enabling one to compare and apply for loans online.


1 Comment
jen lyn link
4/8/2017 12:53:15 pm

Reply



Leave a Reply.

    MPIG News 

    In this section we will be sharing on articles & news update related real estate and some other interesting topics.

    Archives

    December 2021
    November 2021
    October 2021
    September 2021
    August 2021
    July 2021
    June 2021
    May 2021
    April 2021
    March 2021
    February 2021
    November 2020
    October 2020
    September 2020
    August 2020
    July 2020
    May 2020
    April 2020
    March 2020
    February 2020
    November 2019
    October 2019
    July 2019
    May 2019
    April 2019
    March 2019
    February 2019
    December 2018
    November 2018
    October 2018
    August 2018
    July 2018
    June 2018
    May 2018
    March 2018
    February 2018
    December 2017
    November 2017
    October 2017
    September 2017
    August 2017
    July 2017
    June 2017
    May 2017
    April 2017
    March 2017
    December 2016
    November 2016
    October 2016
    September 2016
    August 2016
    July 2016
    June 2016
    May 2016
    April 2016
    March 2016
    February 2016
    December 2015
    November 2015
    October 2015
    September 2015
    August 2015
    July 2015
    December 2014

    Categories

    All

    RSS Feed

Thank you for visit our website. We proudly present you our official MPIG homepage.
We wish you a pleasant experience on surfing the website.


Hours

M-S: 9.30am - 9pm

Telephone

+60 12 3760864

Email

mpighome@gmail.com
  • Home
  • New Property Launch
    • Best Investment 2022 PJ Damansara Low Risk Low Entry Price High ROI
    • 2022 PJ Rumah Mampu Milik RM270k Damansara
    • Bangsar South 2 Rooms from RM390k BELOW Market Price
    • 10% ROI PJ Project near Ikea and One Utama Mall
    • Mid Valley Seputeh New Launch
    • Pavilion Damansara Heights 柏威年 白沙罗岭 马来西亚 吉隆坡 精选楼盘
    • 马来西亚RM300千的PJ屋子-首购族,年轻人月入3千能买房
    • 2021 Penang Most Awaited Project
    • 2021 New Launch - KL Metropolis
    • 2021 PJ Spacious and Affordable 5 Star Condo
    • Freehold LRT Linked 3 Room Suites in Glenmarie
    • New SPACIOUS Kepong Landed 6 Room 6 Bath
    • Bangsar Last Piece Land New Launch
    • Avara Seputeh (Mid Valley)
    • Project Announcement Registration. Malaysia New Property Launch
  • Existing & Past Project
    • 2020 Lowest Risk & Price in Klang Valley with Great ROI
    • Kiara East Suite Dex
    • 2019 SAFEST PROFITABLE HIGH CASHBACK INVESTMENT
    • Best Property Investment Projects in 2018
    • KL City Freehold Spacious Affordable 3 room Project
    • Jalan Kuching Freehold New Office & Shoplot
    • Jalan Ipoh New Freehold Shoplot & Offices
    • RM300k KL Sentral New Prelaunch
    • The Olive Condo, Sunsuria City
    • Prelaunch Landed House Bukit Rahman Putra
    • RM260k No Downpayment Puchong South Suites
    • PJ North RM400k High Cash Back Project
    • Denai Sutera @ Alam Sutera, Bukit Jalil
    • First Phase of Banting New Township
    • Neu Suites 3rdNVenue @ Embassy Row by Titijaya & CREC
    • COURT 28, Jalan Ipoh KL City New Property Launch Service Apartment. Malaysia New Property Launch
    • Semanja Kajang New FREEHOLD Kajang Double Storey Houses. Malaysia New Property Launch
    • M Suite @ Desa Park North
    • BIJI LIVING @ Sek 17 PJ City by Conlay. Malaysia New Property Launch
    • Amani Residence Bandar Puteri Puchong New Freehold Service Apartment. Malaysia New Property Launch
    • SFERA RESIDENCY @ Puchong South. Malaysia New Property Launch
    • KL North Last Release
    • PreLaunch Freehold Double Storey
  • LAND
  • News & Articles
    • Educational Articles
    • Ho Chin Soon Greater KL Map Sharing
  • Other Reference Link & Services
    • Land Sale Malaysia
    • Malaysia New Property Launch
    • Lets Buy Property Malaysia
    • Other Professional Services
  • Referral
  • Career
  • MPIG
    • About Us
    • Contact Us
  • Get Professional Advice
  • PJ八打灵2021全新地产项目分析手册