Hi,

This is case study. Assume you got the house where already paid off all the bank loan but still not yet
discharged from the bank. (Can't discharge due to exit penalty by bank). Base on the current market value, the loand can go up to RM250k.
The current bank loan package is 1st year 0%, 2nd year BLR-1%,3rd year onward BLR+0%. Now, the is on 3rd year).

Now, assume you want to buy one new condo worth RM180k. The following options you can have buy this
house :
Option 1. Pay 10% down payment and apply new loan.
Option 2. Refinance existing house, to get lower bank loan package, and use cash to buy new condo. And installment
only at current house.

Please give your opinion and why.

Thanks.

applying a new loan for the 180K condo would be better as the current package from banks easily can get BLR -2%. also, refinancing the current house would incur penalty as it is still within the lock in period. since you are "not" paying any money for the existing house, it does not make any difference whether you are serving loan for the house or the condo. monthly outlay is still the same.