Refinancing

[pantieileen 2]

This is the first time i'll need to do refinancing for my mortage loan. Currently on DBS 2yr fixed rate signed in Nov 2009 so it's going to expire in Nov 2011.

Normally how long prior to expiry do we need to shop for refinancing packages?

Coz i asked my parents they say they forget, never take mortage loan for so long.

I called Citi but they said they don't do home or car refinancing loan, which is strange.

[watchthewaves 0]

2 to 3 months should be comfortable I suppose. Depends on how much time you have and how extensive you want to check around and negotiate. I suppose the easiest thing is first ask the existing bank if you re-finance with them, what can they give you. Take that as the starting point/benchmark to look around. Packages linked to SOR/SIBOR seem to be popular now.

[leechaorui 2]

This is the first time i'll need to do refinancing for my mortage loan. Currently on DBS 2yr fixed rate signed in Nov 2009 so it's going to expire in Nov 2011.

Normally how long prior to expiry do we need to shop for refinancing packages?

Coz i asked my parents they say they forget, never take mortage loan for so long.

I called Citi but they said they don't do home or car refinancing loan, which is strange.

Hi Pantieileen,

You can get a mortgage consultant to help you source for a bank loan that meets your needs. His service is free and you pay the same rates if you go direct to the bank. Only difference is the mortgage consultant helps you to check out on the banks and give you more personalised service.

Cheers!

[godloveyou 0]

This is the first time i'll need to do refinancing for my mortage loan. Currently on DBS 2yr fixed rate signed in Nov 2009 so it's going to expire in Nov 2011.

Normally how long prior to expiry do we need to shop for refinancing packages?

Coz i asked my parents they say they forget, never take mortage loan for so long.

I called Citi but they said they don't do home or car refinancing loan, which is strange.

Need 3 months to inform existing bank of your decision as to carry on or switch.

Plus another 1-2 months to hunt for new package. Depending on yr speed.

Remember, lawyer speaks to lawyer only. Meaning, engage new bank and ask its lawyer to write to yr existing bank's lawyer for the switch.

[pantieileen 2]

ok so it's probably time to start asking dbs. Coz i'll need to fedex the documents back and forth

[Warrior88 0]

You may be off the hook for the 2 years.

But do note that DBS tie up the legal fees as 3 years ....

Legal fees: Costs for legal services rendered in the property purchase and mortgage documentation relating to the bank loan; typically there is a 3-year clawback period.

http://dbs.com/sg/personal/homeloans/refinance-your-loan/default.aspx

This may not affect you since your purchase you sgin the loan after 2002. But if not,

do note this ....

Will the CPF Housing Withdrawal Limit affect me when I refinance my loan?

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.

[Warrior88 0]

Taken from CPF website... For old homeowners, bought before 2002, pls note

I bought my property under Residential Property Schemes and took a housing loan before 1 September 2002. What happens if I refinance my housing loan after 1 September 2002? Will the new housing rules - the revised CPF Withdrawal Limit and financier's first charge on the property apply to me?

A: When you refinanced your housing loan (i.e. there is a new contract between your bank and you), the new bank will have the first charge on your property and a Withdrawal Limit will be imposed on your CPF usage. The CPF Withdrawal Limit will depend on the date you refinanced your loan (determined by the date you sign the contract with your bank - please refer to Table A below for the various CPF Withdrawal Limits. Once the Withdrawal Limit is set, it does not change with subsequent refinancing.

If you are below age 55 and your housing loan is still outstanding when the total CPF usage for the property has reached 100% VL, you may continue to use your CPF Ordinary Account savings to repay the housing loan up to the applicable CPF Withdrawal Limit, if you can set aside half of the prevailing Minimum Sum. Savings in the Special Account (including the amount used for investments) and Ordinary Account can be used to meet half of the prevailing Minimum Sum.

However, if you are aged 55 and above when 100% VL is reached, you may use the excess CPF Ordinary Account savings to repay the housing loan up to the applicable CPF Withdrawal Limit after setting aside your Minimum Sum cash component shortfall.

When you sell the property, the sale proceeds will be used first to pay off your housing loan, followed by the CPF principal amount withdrawn and the accrued interest.

[Warrior88 0]

Check you loan agreement ...

Interest-in-lieu of notice: Interest costs for refinancing. Typically, you will need to serve a 3-month notice in writing to your existing financier. This is the interest you may have to pay your existing financier, if you give less than three months notice to fully repay your loan.

[wuga98 0]

Citi does refinancing, in fact they are agressively wanting to get a piece of the pie. If you are their gold client, the rates are lower than what you will get from their published rates.

PM me if you need help. Thanks

This is the first time i'll need to do refinancing for my mortage loan. Currently on DBS 2yr fixed rate signed in Nov 2009 so it's going to expire in Nov 2011.

Normally how long prior to expiry do we need to shop for refinancing packages?

Coz i asked my parents they say they forget, never take mortage loan for so long.

I called Citi but they said they don't do home or car refinancing loan, which is strange.

Edited August 8, 2011 by wuga98