As the standard of living and interest rate climate in Singapore rise, we are going to discuss about 4 ways to reduce monthly instalment for your home loan to further relieve your financial burden.
1)Full Loan Redemption
If you have excess CPF or cash funds and have no better place to grow your money, you may like to redeem your home loan. Before you do that, it’s advisable to talk to a dedicated mortgage broker to Ensure that you are not subjected to any penalties due to cancellation fees imposed during lock in period etc.
2)Partial Loan Redemption
Most bank loan packages have a prerequisite of a minimum amount for partial loan redemption. Ample time notice has to be served to the bank before carrying out any redemption.
3)Refinancing to a Lower Interest Rate
If you are paying at or more than 2.5% on your home loan interest currently, it’s time to do a review. Based on our observation, there’s still some banks that offer home loan packages at rate at below 2%.
4)Extend your Loan Tenure
if your home loan fulfils the guidelines, you can have the option to extend your home loan tenure which will help to reduce your monthly home loan instalment amount. But do note that you may end up paying more interest instead over the Long run.
To get in touch with our Mortgage Advisory Manager, do PM us at +65 85565271.