Most new homebuyers generally opted to take out an HBD housing loan to either finance or purchase their first home. This is because the buyers are often allowed to avail of the loan of as much as 85% of the valuation of the property. It is also relatively simpler to come up with a slightly lower down payment.
First-time homebuyers are unaware of the other several options available in the marketplace. Either way, the interest rates offered by the banks were slightly higher.
Furthermore, the homeowners potentially look for a mortgage loan with low-interest rates. If you are going through this reading, you can also be stuck between these consequences. But, don’t worry here. You will come to know about the aspects to refinance from hdb loan to bank loan.
When to refinance your HBD loan?
Although, if you have decided to refinance your HBD loan, you must know when to do it?
Lower interest rates
Lower interest rates mean more procurable income, which can be further mobilized into your other investment options like savings, retirement funds, or adventurous travel funds.
So, if you have no intention of shifting to a new place, you can refinance from an HBD loan to a bank loan.
Changing financial condition
If your financial condition has been improved or sabotaged, you may increase or decrease your loan period.
- Mitigating the repayment period can help you clear your loan faster, with lower interest rates.
- Lengthening the repayment period can drastically improve the cash flow. But, it generally increases the payable amount.