Now, for those who have taken a home loan in Singapore, it's sensible to regularly review the package, as this affair is extended on a 25 to 35 years, and it stands to reason that a particularly good rate a few years ago might not be as satisfactory now, as interest rates are in constant change. The best option is refinancing your loan, a common decision for home owners in Singapore. They generally refinance their loans after the first three to five years, a process that transfers their home loans from one bank to another to ensure their interest rates are the lowest on the market.

Why refinance? Well, first of all, it achieves piermont grand ec lower monthly repayments. It often does that by allowing you to switch to a different loan type (for instance, from a fixed-rate loan to a floating-rate one). In addition, it helps you pay off your mortgage faster and unlock cash value from your property, because with property appreciation a property is likely to be worth more now than when you first took up your original loan. In Singapore, for instance, Central Property typically experiences faster growth at the beginning of a property market upturn in comparison to Outer Property. Similarly, it also normally appreciates faster after a property market correction than the overall market. Moreover, depending on the terms of your existing mortgage, refinancing your home loan may come with prepayment penalties or subsidy clawbacks. For these packages it makes sense to wait until the clawback period is over in order to avoid paying extra.