Last month, we spoke to several
experts on the basics of refinancing and what it entails. Read on for
the rest of their comments on the timing of refinancing and the types
of products and services available in the Malaysian market.
When is a good time to refinance?
is always a good time to refinance if there are significant nett
savings attained by refinancing the existing loan, says Moey Tan, chief
operating officer of personal financial services at Hong Leong Bank.
whether through re-pricing with your existing banker or with another
bank, will make sense when there is sustained decrease in rates,” says
Peter England, head of retail banking at CIMB Bank Berhad.
example, the current low interest rate environment makes it a good time
to consider refinancing. A borrower may want to change from a fixed
term loan product to a more flexible loan like overdraft when he has
more disposable income and knows how to leverage on the product
flexibility to save cost or invest for potentially higher returns than
his interest cost,” explains Goh Ching Chee, Citibank Berhad’s director
for mortgage business.
Keatky, head of mortgage of ING Insurance Berhad, feels that homeowners
may refinance at anytime as long as they have a valid reason to do so.
before they do so, they must ensure their needs are matched accordingly
with the new home loan offer and they have to make sure the up front,
ongoing and refinancing cost is properly calculated,” explains Lim.
What to do after deciding to refinance
your reason is to refinance, it pays to shop around for the best loan
product to refinance your current home loan, says Abdullah Abdul
Rahman, head of mortgage, consumer banking division of Maybank.
order to make the best decision for you and your family, it is
important to be aware of your short-term and long-term financial goals
pertaining to your financial situation and your home,” says Abdullah.
out your current situation, your immediate financial needs such as to
consolidate your debt or to renovate your home and your future
financial needs such as to send your kids to college. Also match this
with a long term savings and insurance plan to ensure that you have a
nest egg when you retire and no longer earn a constant stream of
income. The best decisions are based on the most thorough information,”
to Lim from ING Insurance Bhd, it is important to know what you want,
and to do a product search prior to deciding on which financial
institution to refinance with.
a basic financial plan for yourself. Some of the elements that are
important to include in this financial plan are the exact time period
you want to finish paying off your housing loan. In addition, be
certain how much interest will be incurred for the entire duration of
the loan,” advises Lim.
also important to know the different types of home loans available in
the market. Some home loans are based on fixed interest rate while some
are based on floating interest rate. Understand how each type can help
you achieve your financial plan. It is good to know to what extent of
certainty each type of home loan help you achieve your financial plan,”
Products and services available in the market
the myriad of products and services available, selecting the right
financial institution and the right product can be quite a hassle.
However, it pays to research thoroughly to find the best product to
suit your own financial needs.
Citibank, we offer flexible, best-in-class home loans that meet
customers’ different financial and lifestyle requirements. Our current
portfolio of housing loans includes our ever popular Citibank
Homecredit, Citibank Flexihome Loan, Citibank Housing Loan and Citibank
Home Partner-i,” says Goh.
default, Citibank will revise customers’ instalment payments when there
are revisions in interest rate. This is particularly helpful to
customers especially in the current low interest rate environment as
this translates to more disposal income for customers to tide over the
current tight economic environment,” he explains.
from ING Insurance include fixed rate home loan, 4.85 per cent for
non-zero entry cost, 4.99 per cent for zero entry cost, fixed up to 30
years, and up to 90 per cent financing, says Lim.
offers a great opportunity for the borrower to log in at low fixed rate
for up to 30 years. With the fixed rate home loan regime, the interest
rate is fixed throughout the life of the loan, which means the monthly
payments will not change for the whole period of the loan tenure
providing borrowers the peace of mind and stability needed,” explains
Hong Leong offers two major types of home loans namely, Hong Leong
MortgagePlus and Zero Moving Cost packages. The former is a flexi home
loan linked to a non-interest bearing current account to provide
customers advantages such as, daily interest savings, easy access to
cash, shortened loan period and the flexibility of depositing and
the Zero Moving Cost package, the customer would not need to pay legal
fees, processing fees, valuation fees and stamp duty when refinancing
with Hong Leong Bank.
Bank is the second largest property financing provider in the country,
offering both conventional and Islamic financing,” says England. The
bank offers flexible home financing where balances from both
conventional and Islamic account can be used to offset the outstanding
means that the more you have in your account, the less you pay in terms
of charges (interest or profit) for your home financing. Our Islamic
Flexi Home Financing-i, launched in January 2009, garnered more than
RM300 million in sales, within its first month,” says England.
Maybank, one will find the MaxiHome promotional package and MaxiHome
standard package, in addition to its range of facilities and benefits.
The former recognises and acknowledges the premium that properties
located in prime areas offer, therefore the packages are priced
competitively in the market. The latter, which also offers attractive
rates to complement the promotional package, is available at all
branches nationwide to meet the needs of customers throughout the
addition to these attractive low rates, the MaxiHome loan packages are
designed to offer attractive lower monthly repayments which will enable
customers to own their dream house without compromising on their other
financial commitments or lifestyle,” says Abdullah.
loan packages, depending on the type of property purchased, offers a
slew of attractive benefits including Zero Payment benefit, Pay Half
benefit, Pay Later benefit or Pay Less benefit.
find out more about the products and services offered by these banks,
kindly contact your nearest branch for a personal consultation