Learn how to refinance housing loan Public Bank in Malaysia. Discover the benefits, process, and expert tips from our consultants with 20 years of experience. Get the best rates and save money today!
Refinancing your housing loan can be a game-changer, especially when you do it with a reliable bank like Public Bank in Malaysia.
Whether you’re looking to reduce your monthly repayments, shorten your loan tenure, or get some extra cash for renovations or other needs, refinancing can offer you the flexibility and financial benefits you need. In this guide, we’ll walk you through everything you need to know about refinancing a housing loan with Public Bank.
Why Refinance Your Housing Loan?
Benefits of Refinancing
Refinancing your housing loan can provide numerous benefits. Here are a few key reasons why you might consider it:
Lower Interest Rates:
Refinancing can help you secure a lower interest rate compared to your current loan, which can significantly reduce your monthly repayments.
Shorter Loan Tenure:
By refinancing, you may be able to shorten your loan tenure, allowing you to pay off your loan faster.
Extra Cash:
Some refinancing packages allow you to borrow additional funds for personal use, such as home renovations or paying off other debts.
Better Loan Terms: You might find better loan terms that are more suited to your current financial situation.
When to Refinance?
Timing is crucial when it comes to refinancing. Here are a few scenarios when you might consider refinancing your housing loan:
Interest Rate Drops:
If the interest rates have dropped significantly since you took out your original loan, it might be a good time to refinance.
Improved Credit Score:
If your credit score has improved, you may qualify for better loan terms.
Financial Changes:
Major changes in your financial situation, such as a salary increase or a change in employment, might make refinancing a viable option.
Understanding Public Bank’s Refinancing Options
Refinance Public Bank Housing Loan Features
Public Bank offers competitive housing loan refinancing options with features designed to benefit borrowers. Here are some of the highlights:
Competitive Financing Rates:
Public Bank is known for offering some of the most competitive interest rates in the market.
Flexible Repayment Options:
With flexible repayment plans, you can choose a tenure that suits your financial goals.
High Loan Margin:
Public Bank offers a high margin of financing, making it easier for you to get the funds you need.
Tenure up to 35 Years:
Public Bank provides refinancing options with tenures of up to 35 years. But, 10 years on the cash out portion.
Preferential Rates for Green Purposes:
Enjoy preferential rates if your refinancing is for green and environmentally-friendly purposes.
Redraw Facility Available:
If you’ve made extra payments, you can redraw these funds if needed.
Multiple Payment Channels:
Make your payments conveniently via PBe, ATM, and Public Bank/Public Islamic Bank branches.
Semi-Flexi and Full-Flexi Home Loan Products:
These products can help you save on interest by allowing flexibility in your repayments.
Conventional and Islamic Products:
Public Bank offers both conventional and Islamic refinancing products to suit your preferences.
Refinancing Margin:
Public Bank provides a refinancing margin of up to 80-90%.
Public Islamic Bank Home Equity Financing-i
In addition to traditional housing loans, Public Bank offers Shariah-compliant options through Public Islamic Bank. The Home Equity Financing-i product includes:
Home Equity Financing-i:
Home equity financing on a variable rate basis, where the monthly rental is calculated based on the Standardised Base Rate (SBR) + spread. Customers who select the redraw package may opt to redraw excess payments made towards the facility.
Home Equity Financing-i (Green) VBI:
Home equity financing for green and environmentally-friendly purposes, also on a variable rate basis with the option to redraw excess payments.
Refinance Housing Loan Public Bank: Fees and Charges
When refinancing with Public Bank, it’s essential to be aware of the fees and charges involved:
Processing Fees:
Up to RM30,000: RM50.00
RM30,001 to RM100,000: RM100.00
Above RM100,000: RM200.00
Termination Fee:
RM2,000.00, applicable if the facility is cancelled prior to disbursement. This fee is only applicable to facilities secured by properties and land, either partially or fully secured. It is not applicable to facilities fully secured by Islamic Investment-i, earmarking by marginal deposit/current account-i, or Government/Credit Guarantee Corporation (CGC) financing on a clean basis.
Service Fee for Redraw Facility-i:
RM50.00 for each successful redrawal transaction.
Lowest Interest Rate
Public Bank offers a competitive interest rate of 3.85% (SBR + 0.85%) if you have a good profile and good scoring. However, Public Bank does require you to purchase their Mortgage Reducing Term Assurance (MRTA). Rarely can MRTA be waived.
The current low interest rate is as at 11/6/2024, may change from time to time.
Refinance Housing Loan Public Bank: Eligibility Criteria
To refinance your housing loan with Public Bank, you’ll need to meet certain eligibility criteria. Here are the general requirements:
Age: Borrowers must be between 21 and 70 years old.
Income: There is a minimum income requirement, which varies depending on the loan amount and other factors.
Employment: Stable employment or business income is a key factor in determining eligibility.
Refinance Housing Loan Public Bank: Required Documents
When applying to refinance your housing loan with Public Bank, you’ll need to provide several documents. Here’s a checklist to get you started:
Identification: NRIC or passport
Income Proof: Recent salary slips or income tax returns
Property Documents: Title deed and valuation report
Existing Loan Statements: Statements from your current bank
How to Refinance Your Housing Loan with Public Bank
Step-by-Step Process
Refinancing your housing loan with Public Bank is straightforward. Here’s a step-by-step guide:
Research and Compare: Start by researching and comparing different refinancing options to ensure you’re getting the best deal.
Calculate Savings: Use an online mortgage calculator to estimate your potential savings.
Gather Documents: Collect all the necessary documents for your application.
Submit Application: Complete and submit your refinancing application to Public Bank through our recommended Public Bank Banker.
Loan Approval: Once your application is approved, Public Bank will provide you with the loan agreement.
Settlement of Existing Loan: Public Bank will settle your existing loan with your current lender.
New Loan Disbursement: Your new loan will be disbursed, and you’ll start making repayments under the new terms.
Tips for a Smooth Refinancing Process
To ensure a smooth refinancing process, keep these tips in mind:
Check Your Credit Score: A higher credit score can help you secure better loan terms.
Review Loan Terms: Make sure you understand all the terms and conditions of the new loan.
Consult an Expert: Consider consulting a mortgage consultant to help you navigate the refinancing process.
Common Questions About Refinancing with Public Bank
Is Refinancing Worth It?
Refinancing can be worth it if it helps you achieve your financial goals. Whether it’s lowering your interest rate, reducing your monthly repayments, or freeing up some cash, refinancing can offer significant benefits. However, it’s important to carefully consider the costs involved, such as legal fees and stamp duty.
How Long Does the Refinancing Process Take?
The refinancing process typically takes a few weeks to complete, depending on how quickly you can gather and submit the necessary documents. Public Bank aims to process applications efficiently, but it’s always good to allow some extra time for any unexpected delays.
Can I Refinance If I Have a Poor Credit Score?
While having a poor credit score can make it more challenging to refinance, it’s not impossible. Public Bank considers various factors when assessing applications, so it’s worth exploring your options. Improving your credit score before applying can also increase your chances of approval.
Conclusion
Refinancing your housing loan with Public Bank can offer you the financial flexibility and benefits you need to achieve your goals. With competitive interest rates, flexible repayment options, and a straightforward application process, Public Bank makes refinancing an attractive option for homeowners in Malaysia. Our experience consultants are here to guide you through every step of the way.
Ready to refinance your housing loan with Public Bank? Contact us today and let our experts help you secure the best deal. With our extensive experience and personalized service, we ensure a smooth and successful refinancing journey for you.
This article aims to be your ultimate guide to refinancing a housing loan with Public Bank in Malaysia. With over 20 years of experience, we understand the intricacies of the process and are committed to providing you with the best advice and support. Don’t wait – take control of your finances and explore your refinancing options today!
LIKE, SHARE & FOLLOW US!
#malaysiahousingloan
Leave A Comment