Repricing your home loan.
Repricing your loan within your bank helps you avoid lousy thereafter rates
Consult us, on which rates to take up and to check if it's profitable to move.
You might want to reprice instead of refinance because of your constraints.
Undisbursed Loans
If you have just reached the TOP stage of your property, you would have a 15% of your loans being undisbursed by your bank.
Your loan does not have a lock in period, but if you have committed to borrow the full sum of your property from your existing bank.
There will be a cancellation charge on the undisbursed amount of 1.5% or 0.75% depending on your letter of offer.
E.g.
Property price = 1,000,000
Total loan = 750,000
Upon TOP, disbursed loans = 600,000
Undisbursed loan = 150,000
Penalty = 150,000 * 1.5% = 2,250
or
Penalty = 150,000 * 0.75% = 1125
Refinancing may be profitable if the rates you were offered are lousy.
Check with us, it costs you 0 but might save you thousands.
Clawback Periods
If you have previously refinanced, you would have gotten a promotion from your current bank that pays for your legal and valuation fees.
Your legal and valuation fees are dependent on your loan size and your property valuation.
Your clawback period is typically 3 years, which means, even if your loan is out of the lock-in period, you may want to reprice to avoid the clawback.
Banks typically gives you a free repricing when you refinance and it usually makes the most sense for you to reprice within the current bank.
However, if your banks give you rates that are far from our unbeatable rates, do let us have a look, we might be able to save you more money from interest rate savings.
Lock-in
Your lock-in period is the mother of all constraints; the cost of breaking the lock-in is typically be 1.5% of your entire loan.
Some packages allow you to reprice within lock in periods, for these case, you should not be looking at refinancing.
On that note, when exiting the property, it is the only acceptable time to pay for thereafter rates, for the sole purpose of avoiding this penalty.
Get in touch for a free, non-obligatory consultation.