Why do people refinance? It could be due to them seeking for lower interest rates, or more affordable instalment amount for repayment of debts. Additionally, it could also be for their children’s education, capital for starting up a new business over even something as critical as an emergency fund for medical costs. This would also create the urgency in our lives hence causing us to refinance our assets.
However, due to Bank Negara Malaysia’s requirement, nowadays refinancing may not be easy to get. BNM’s new ruling states that in order to manage the household debt, the maximum tenure of such loan is limited to only 10 years tenure. Cash out portion from house refinancing falls within the definition of such loan, and hence it requires the borrower to fully settle the cash out portion of the debts within 10 years. This would also mean the instalment repayment would increase drastically, because you need to fully repay within the stated tenure.
In most instances, people would consider refinancing to get extra cash out for additional financing. However, because of this rule tightening, not many people are able to qualify for refinancing, because their commitment might already have been maxed, coupled with the stricter requirement of shorter tenure, they just cannot afford much cash out loan from the refinancing.
What other options for refinancing?
Why complicate your life when you can have a simple solution from our company? We assist to find a loan that is suitable to your needs with better features, get a better interest rate and payment term. In addition, when you refinance, you want the process to be quick, effortless and improve your cash flow without going through the hassle.
Firstly, we would assist customers to understand their financial standings. This is done by getting their outstanding balance of mortgage and remaining years of mortgage. Next, we will educate them on information regarding the new loan such as the current mortgage rates and number of years to pay a off. By doing so, customers are able to get a clearer picture of how refinance works and not be in the pit hole of running around in circles of not knowing what to do. Customers can also opt for our services to clear off all unfavorable outstanding debts such as credit card debts or car loans before proceeding to apply from commercial banks.
By doing so, homeowners are able to further understand how this process works. In short, this will allow them to make better decisions and judgments instead of impulsive decisions. What homeowners need to understand is that they will still have debt of the same amount and payment charges will change as well. It doesn’t mean that the debts go away, it just moved from A to B. Thus, in times of need or emergency; refinancing is an easier way out of getting cash.
Should there be any difficulty in getting a refinanced loan from your preferred bank, you can consider getting a private refinance loan from us. Do contact us for further enquiries and we will be glad to attend to all your financial needs.
We do offer refinancing with the banks as well as if it fails, refinancing with private licensed money lenders. For private lenders, the rates might be slightly higher, but they do offer easy approval process, fast disbursement and flexible tenure for their lending. The most important is that we can solve your urgent financial needs.