Ravi Chandran
Thanks to the return of the low interest rate environment, home loan saving is now possible if you follow a few simple steps
If you are a homeowner, chances are that you are on the lookout for home loan saving as interest rates fall.
Thanks to the return of the low interest rate environment, cheap home loan is now becoming the norm again as banks’ interest rates for floating home loans drop to their lowest in recent years. If you are thinking about refinancing right now, then you got to check out some of the refinance hack that we have put together to help you save on your home loan.
These 4 hacks will help you make home loan saving:
Hack 1: Utilize Your Chance To Reprice Even When Your Lock-In Period Isn’t Up
Many of you know that home loans come with a lock-in period that prevents you from refinancing your home loan. Some might point out that you can technically still refinance your home loan during the lock-in period. However, you will incur a penalty that is sometimes much more than what you will be saving when you refinance. As such, those who are still in your lock-in period will have to continue letting the bank charge you the higher-than-current interest rate.
Well, there’s one refinance hack that you can use to help you save, i.e. you can ask your bank to reprice your home loan. Most home loans come with 1-2 chance for such a repricing, even during the lock-in period. This refinance hack is somewhat lesser known that fly under the radar of most homeowners.
Hack 2: Find The Cheapest Home Loan At The Click Of Your Mouse
One of the most common complaint that we hear from homeowners is that finding the cheapest home loan is difficult. You have to visit 10 different bank websites to scrape the interest rate, put it in an Excel sheet and then compare them. Honestly, nobody has the time and motivation to do that. That’s why we started iCompareLoan to make this a refinance hack for you to find the cheapest home loan. All you need to do is to visit a trusted mortgage consultant and put in a few refinancing details. Their algorithm will do the rest for you to find the cheapest home loan at the click of your mouse.
Hack 3: Take Advantage Of Lower TDSR Limits To Refinance
The total debt servicing ratio (TDSR) of 60% has been creating problems for homeowners who are looking to refinance. Because of the TDSR, some of you might not be able to refinance to a cheaper home loan package. Well, luckily for you, the banks are now lowering their TDSR limits to help homeowners refinance because of COVID-19.
For instance, you can check out this article on how SCB is waiving TDSR limits so that you can refinance to a cheaper home loan. This is part of MAS’ efforts to help homeowners manage their cash flow during this COVID-19 period. If you use this refinance hack wisely, it can save you quite a bit of money every month.
Hack 4: Interest Rate Matters More Than Branding
For most things, the branding matters. But when it comes to home loan, it really doesn’t matter. This refinance hack will change the way you think about searching for a refinancing package for your home loan. Indeed, the most important thing when comparing home loan is to search for the one that comes with the lowest interest rate. The lower the interest rate, the more you can save from your monthly mortgage repayment.
But still, it is a good idea to check out what kind of home loan deals you can find from different banks in Singapore. You can sometimes find cheap deals, especially when they are doing a promotion.
Check out the best DBS home loan guide, best OCBC home loan guide and best SCB home loan guide if you are on the hunt for low interest rate home loan.
Use These Refinance Hacks Now To Enjoy Savings On Your Home Loan Today
Knowing these refinance hacks is just one step towards enjoy savings on your home loan. Still, you need to take the second (and most important) step of turning the refinance hack into action. If you don’t take action today, you will not be able to enjoy savings on your home loan. So, what are you waiting for? Head over to a trusted mortgage consultant now to start your refinancing process today.
