Refinancing is the process of transferring your outstanding loan from Bank A to Bank B. It make sense when Bank B is offering a lower interest rate than Bank A and there are interest savings for your home loan.
Click here for example of refinancing – refinance
Repricing is the process of getting a new loan package (lower interest rate package) from your existing bank.
So how to determine if you should refinance or reprice?
Things to compare:
- Interest rate offer by existing bank and new banks
- Any lock in period from existing bank
- Any clawback (legal free, valuation, fire insurance) from existing bank
- Loan amount (this help to determine how much legal subsidy you can get from new banks. If outstanding loan is low, this will required client to top up for their own legal fee)
Do contact us if you need us to do a detail calculation for you!