7 Refinance Tips Everyone Should Know in 2023

Hey guys, this week we have a few tips to help you effectively refinance your property.

We are going to talk about 7 Refinance Tips Everyone Should Know.

So, before we dive in today, let’s talk about refinancing.

What is refinancing?

Refinancing is a process of obtaining a new housing loan, with a new bank, to reduce monthly payments, lower your interest rates, change your home loan package or take cash out for personal use.

So, Let’s begin.

Tips 1: List Down Your Refinance Purpose

List down the reason you need to do a refinancing.

This purpose will give a sense of direction or a guide for refinancing.

Different people will have a different purpose. Search for that ultimate purpose.

Some people doing refinancing for lower down interest rates, changing package, expanding a business, renovate a house, child education and so on. You need to find your purpose.

Tips 2: Know Your Home Loan Outstanding Amount

It is important to know what is your home loan outstanding amount.

It will determine how much cash you will get later.

Usually, the bank will send out a semi-annual home loan statement or if you don’t receive. Just call up the bank to check!

Tips 3: Check Your Property Current Market Value

Current Market Value will define how much loan you will get.

So, how to get your current market value?

You can call up the banks or contact us at Malaysia housing loan.

we will provide more in-depth consultation like your home loan eligibility, home loan tips, and advice.

Tips 4: Print CCRIS Report

Before getting whatsoever loan, it is important to get a CCRIS report from Bank Negara. The report is FREE.

Once you have CCRIS report in hand, you are ahead of the bank. You just need to find someone like us to evaluate your CCRIS report.

Who will tell you whether your report is clear or otherwise.

CCRIS report will show all your loans conduct, how much your commitment like and your payment pattern.

To be honest, this will be the most important step, and yet a lot of people neglect it.

Tips 5: Check Your Eligibility

Before applying for a loan, you want to know how much you can borrow and how much cash out you get.

You can check your loan eligibility with us at Malaysia housing loan, or you can call banks to check it.

In general, you want to make sure all your commitments including the new installment does not exceed 60 to 70% of your net income.

However, refinance calculation can be slightly complicated. It is the best if you consult us for the ideal calculation.

Tips 6: Check Your Lock-in Period

Most banks will offer a Lock-in Period Home Loan package.

So, before go ahead with refinancing, you have to know whether your home loan is still within lock-in period.

If it does, you need to check the penalty fees.

The penalty fees can be in the range of 2-3% of the original loan amount. Sometimes, it can be a huge amount.

It’s good that you know the cost involve before go ahead with refinancing.

Tips 7: Know The Cost of Refinancing

The last tip is to know how much the refinancing process will cost you.

The costing mostly comes from entry cost. Entry cost is including lawyer fees, disbursement fees, valuation fees, and stamp duty.

The general rule of thumb, is the Entry cost will be in the range of 2 to 3.0% of the original loan amount.

It is varying, because of property status like freehold, leasehold, with a title or without a title, different state and so on…

And if you have penalty fees, you want to add that as your cost too.

For more Home Loan information and enquiry, please call/ WhatsApp us at 012-6946746 or visit our website www.malaysiahousingloan.net.

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