Are you currently paying more than the market interest rate? Have you passed the lock-in period for your home loan with your current bank? If your answer is yes to both these questions, you may want to consider refinancing your home loan.
As Singapore's biggest financial institution, we offer a highly-competitive refinancing package that comes with an extensive list of benefits. Ready for refinancing? Below are some steps to guide you along.
|Understand the Costs|
Before you opt for refinancing, be sure to review with your existing loan provider to fully understand some of the costs that you may incur.
Check with our Home Advice Specialists for penalty subsidy to help you finance part of your exit costs, if any. Some of the exit costs or penalty fees may include:
If you refinance a property bought before September 2002, you will be subject to the CPF Housing Withdrawal Limit prevailing as at the date of the Letter of offer provided by the refinancing bank. If you refinance a property bought after September 2002, you will be subject to the CPF Housing Withdrawal Limit prevailing as at the date you bought the property.
For the latest CPF news, click here .
You will need to appoint a lawyer to act for you in the refinancing of your property. Do check with our Home Advice Specialist for more details.
For the bank to process your loan, you will need to submit these documents:
Additional documents may be requested on a case-by-case basis. Upon approval of your application, you will receive a Letter of Offer (LO)* from the Bank, stating the details such as loan amount, tenure and terms and conditions. Before signing the LO, you should ensure that you understand its contents entirely, as it becomes legally binding upon acceptance.
Once you have accepted the LO*, the Bank will then instruct the law firm and valuation company to proceed with the necessary mortgage documentation and valuation report respectively.
A caveat^ will be lodged by your lawyer with the Singapore Land Authority against the property.
|*||An LO is a formal offer of housing loan from the bank, setting out the terms and conditions governing the housing loan offered therein.|
|^||A caveat serves as a public notice that the person lodging it is claiming an interest in the property, and it will lapse 5 years from the date of lodgement, unless it is discharged or renewed.|
|Meet your Lawyer|
Your lawyer will go through the mortgage documents in order to ensure that you fully understand all the terms and conditions stated therein.
|Pay Legal Fees|
Before the date of completion, your lawyer will prepare the necessary mortgage documents to be signed upon the following:
The legal fees are usually payable at this stage.
|Be Ready To Act|