Step 1: TDSR Check 

 

a) TDSR (Total-debt-servicing-ratio): The mortgage repayment & your other existing loan monthly commitment should not exceed 60% of your combine income.
If the subject property is an investment property with minimum 6 months balance lease, this portion of income could be included into the total income.

The loan tenure could be the passing factor. Some banks still able to offer up to age 75 or match your balance loan tenure. 

save your time & effort. Let MxRICH calculate for you. 

TDSR - Pass: We will recommend you the mortgage package based on your preference and loan size.

Normally, the following are few core criteria for MxRICH to shortlist bank packages for you:

i) Legal fee & Valuation fee subsidy: There are a few banks still provide legal fee subsidy and valuation fee subsidy. These are the main cost for refinancing. If the bank provides both subsidies, the cash outlay for the refinancing is almost zero. 

ii) Interest rate type: Floating rate or Fixed rate. It is depending on interest rate and individual risk appetitide. 
 
iii) Package features: Lock-in or NO Lock-in. Flexibility could be one of the main criteria for you to decide a package. A NO lock-in package provides you the highest level of flexibility. 

If you plan to sell your property in 2~3 year time, or plan to partially redempt your loan in near future, package with NO lock-in feature is important to you. Most bank package impose 0.75% to 1.5% penalty for loan redemption within lock-in period.  

save your time & effort. Let MxRICH calculate for you. 

TDSR - Fail: Loan-Reducing-Scheme. 

Not all banks provide Loan-Reducing-Scheme for client. Which means the loan option is limited. 

The major condition for loan reducing scheme is to paydown 3% of the outstanding loan at the point of refinancing. 

For example if the outstanding loan is $1mil, the subject bank approve your refinancing application based on the bank internal guideline, the bank will offer you the refinancing package with $970,000 only instead of $1mil. You need to set aside $30,000 to pay toward your existing bank upon the refinancing is executed. 
(Some banks allow client to pay down the 3% in the next 36 months, however, this portion of money may attract higher interest rate)
 

ii) Interest rate type: Floating rate or Fixed rate. It is depending on interest rate and individual risk appetitide. 
 
iii) Package features: Lock-in or NO Lock-in. Flexibility could be one of the main criteria for you to decide a package. A NO lock-in package provides you the highest level of flexibility. 

If you plan to sell your property in 2~3 year time, or plan to partially redempt your loan in near future, package with NO lock-in feature is important to you. Most bank package impose 0.75% to 1.5% penalty for loan redemption within lock-in period.  

save your time & effort. Let MxRICH calculate for you.