If you are thinking of saving money from home loan, when is the best time to start? To get the answer, ask yourself few questions as below before refinance your existing home loan. The 10 key questions are important to help you to understand your current home loan before consider to get a new financial package for its advantages.
Q1: What is my purpose of home loan refinancing?
- For lower interest rate, better cash flow, more savings or investment purpose?
- To restructure few home loan accounts into 1 bank 1 account for better property management purposes?
Q2: What does my chosen bank package offer?
- Type of home loan package: flexi, conventional, Islamic home loan?
- Home loan interest rate?
- Base Lending Rates, BLR?
- Lock in period?
Q3: What is my property market value?
- Sales & Purchase Agreement price (if you bought from property developer) or purchase price (if you bought from previous home owner, sub-sales)?
- Current market price?
Q4: What is my remaining home loan tenure?
Q5: What is my current home loan interest rate?
- Lower or higher than current market home loan interest rates?
Q6: What is my current home loan lock in period?
- 3 years? 5 years?
- Current home loan still within the lock in period?
Q7: What is my penalty if I opt to refinance?
- % based on total loan amount?
- % based on outstanding loan amount?
Q8: Did my current home loan incorporate with MRTA?
- Can I redeem the surrender value?
Q9: What is my current outstanding home loan?
Q10: What is my property current land title status?
- In the midst of changing strata title?