i heard there is new rules (it has been 3-4 years) for the re-financing

what up with the max 10 years repayment period thing or if i just re-finance to other bank, will i still can only get 10 years of max tenure?

Yes, and no. Ill elaborate.

1. When refinancing, there are 2 portions of loans that you are getting:

a) Refinancing of the outstanding balance

b) Cashing out based on the value of the property.

For example, if you have a property with the MV of RM500k, and the outstanding of RM200k, you can refinance the RM200k outstanding (refinancing potion) and cashing out up to RM250k (cash out portion)

2. For most banks, the refinancing and cash out portion is limited to a repayment period of 10 years, even if the loan with you current bank has a tenure of longer than 10 years. Doing this will usually affect your cashflow significantly since you are reducing the tenure of your loan.

3. For some other banks on the other hand, the refinancing potion can be extended to a maximum of 35 years; and the cash out portion will be calculated based on 10 years repayment period for the approval process. HOWEVER, if your loan is approved, the repayment period and instalment will be based on 35 years, for both REFINANCING and CASH OUT portion

Hope that helps.

yes sir, that's my understanding too...the 10 years is a stress test to see what's your DSR like...if it pass then you may pay up to maximum number of years (depending on your age) which is 35 years

so the #3 basically has no different than previous, right??
let say i have MV 500k on MBB, i now refinance with CIMB, hence i will paying 2500 to CIMB (loan of 500k) per months for 35years,eventhou it is said 10y

you are correct. For everyone's benefit... this is valid for banks like ocbc alliance hong leong as far I know


Yes and no.

1 if you can get the loan after your DSR is atress tested, then sure the installment will be the same since it will be calculated based on the maximum of 35 years.

2 I think cimb doesn't have this feature la. You need to check but I know hong leong ocbc and alliance do. Ambank and maybank no.

Try AiA fixed loan. They are easier than normal bank as they calculate based on the tenure you wish to apply such as 35years if not mistaken!

Thanks for sharing. This is news to me, I will have to find out more!

wow interesting...thx for sharing