thanks for the info, if the property remain unchanged under my parents' name, still can apply for refinance right ?

please elaborate more the bold statement please, property is fully own by parents no loan with bank & still pending individual title.

what is the different in term of fee if spa still under my parents name and or join name or my name ?

thanks for the info, if the property remain unchanged under my parents' name, still can apply for refinance right ?

WIth love and affection transfer you are still responsible to pay the transfer agreement feees, but you are exempt from paying the stamp duty on the transfer which can be more expenve than the transfer itself

So my suggestion is to transfer the property to your name, and then finance  it to get the cash out.

ALTERNATIVELY, if you are refinancing it without making any transfer, there wont be any transfer agreement fees, but your parent (the owner of the property) has to be part of the loan application and this will appear in their ccris report. Which can be good also, since for you, the loan is considered joint-loan and in the future when you are applying for another mortgage, this commitment will be split into two... your commitment would be low
Yes, as I mentioned above. They need to join in the application though.

Refinancing your property for cash and credit consolidation

Refinancing is a process that property owners could engage to unlock the full value of their properties. To initiate the process, the bank would request a valuer to perform a valuation on the property and proceed to offer up to 90% of the property value as loans, with the property being used as a collateral. If the property is encumbered, a portion of the money will be used to pay off the outstanding loan and the remaining amount will be credited into the applicant’s account.

In general, secured loan facilities such as mortgages, hire-purchases, and ASB loans are charged lower interest rates compared to unsecured facilities such as credit cards, personal loans, and to some extent over draft accounts. Secured in the phrase refers to the loan agreement having a collateral, e.g. property, car, ASB units. There is a number of overdraft facilities which we will go over one of these days, but for now it is enough to know that overdraft facilities can be granted with or without collateral.

Cashing out on the paper gain

Paper gain of a poperty is the unrealized gain from capital appreciation. Imagine buying a property 10 years ago at the cost of RM200,000 and today it has appreciated to RM400,000. You would be happy with the gain but there is no way for you to utilize the gain unless you either sell the property outright or refinance it.

Selling the property may not be suitable if the investers are planning to take advantage of the rental income as rental increases as property prices increases. For property owners that are staying in the property in question, selling it is also out of the quiestion as they may already be deeply rooted in the residential area and would prefer not to move.

As such refinancing the property may be one the options that property owners could take to unlock the value of their properties without selling them outright.

Consolidating your other loans into a single account

A typical person may have a few loan accounts attached to him, this can be seen in their credit report. These loan accounts may in the form of mortgages, hire-purchases, personal loans, PTPTN, and more. Each loan account has its own tenure, outstanding, installment amount, and most importantly interest rates. As mentioned above, loans with collateral have lower rates than those without.

The basic idea with refinancing to consolidate the other loans is to take advantage the lower interest rates offered for a secured loan facility (a mortgage) to fully settle other loan facilities with higher interest rates. A typical mortgage at the time of writing has an interest rate of around 4.2 to 4.6% per annum (p.a.), depending on the loan amount and credit profile of the applicant. A higher purchase of a passenger car taken at 9 years has an annualized interest rate of 5 to 6%, personal loan starts at 6%, while credit card is just stupidly high at 1.5% per month of the previous month’s statement balance.

Final thoughts

Refinancing is a quick and cheap way to unlock the paper value of your assets. The funds raised from the process of refinancing has lower interest rates than personal and business loans. It is also ideal as a way to consolidate other liabilities into a single, low-interest account.

Say I have inherited my parents' house, current value hovering around 350k (landed) and I want to refinance it so that I can dump it much more downpayment for a new house (roughly 600k price inclusive of stamp duty, MOT, etc.)

do people do this? for the sake of minimizing loan amount on new house. Would prefer to sell  off the first house but the situation is that if the new house is not finished building yet, nowhere to live   Intention is to borrow less than 100k.

Say I have inherited my parents' house, current value hovering around 350k (landed) and I want to refinance it so that I can dump it much more downpayment for a new house (roughly 600k price inclusive of stamp duty, MOT, etc.)

do people do this? for the sake of minimizing loan amount on new house. Would prefer to sell  off the first house but the situation is that if the new house is not finished building yet, nowhere to live   Intention is to borrow less than 100k.

is it a good idea to refinance a property to get more fund for business startup?

When you buy a property and it appreciates, you cannot count it as a gain yet unless you cash it out by selling the property off or refinancing it.

Meanwhile your money is "lock in" in the sense of paper value because it's not realized yet, but at the same time you don't intend to sell that property off because there might be few possibilities
1. You still think the property value will go up further
2. You want to stay in that house
3. It's not the right time to sell it off now

Then refinancing the housing loan is an alternative because you don't have to involve selling off the property to someone else while cashing out the money from the appreciated property at the same time.

With the housing loan interest of 4 - 5% nowadays, if your business is able to give you back more than 5% return then it's definitely a good deal to refinance the house otherwise better put the money elsewhere.

Statistically, 90% of new business fail in the first 3 years.

Statistically, 90% of new business fail in the first 3 years.

is it a good idea to refinance a property to get more fund for business startup?

That's called taking a risk to be an entrepreneur.

You can't be jealous at successful business owner who earns millions or thousands daily and envy at their establishment.

The question is are you willing to make the jump and take the risk or forever be a basic income earner and play safe?

This is no different from the question of putting your money into Fixed deposit or the share market

If you're afraid of losses then gain a 3% from FD. If you're complaining on the low interest then why didn't you put into shares? Oh because it's high risk, then what do you want?

You can't keep dreaming about being somewhere in your mind achieving it if you're not taking the action.

U see, I'm not the only one who tell you that you mental stop you from archieve anything in your life ...

Hi TS,

Want to check with you, is now a good time to refinance?. I have 1 property that I bought since 2010. Rented it out till now. I need money to continue my study. How long does it take to refinance normally?. I ve read that people say its not a good move to refinance, as you are resetting your loan again. Please advise on this, thanks!!.

Hi TS,

Want to check with you, is now a good time to refinance?. I have 1 property that I bought since 2010. Rented it out till now. I need money to continue my study. How long does it take to refinance normally?. I ve read that people say its not a good move to refinance, as you are resetting your loan again. Please advise on this, thanks!!.

Got 2 property. 1 already fully paid, 1 still on loan. Can both be refinance? Like to get some cash fund to grow my business, hope can guide/assist me.

Hi TS,

Want to check with you, is now a good time to refinance?. I have 1 property that I bought since 2010. Rented it out till now. I need money to continue my study. How long does it take to refinance normally?. I ve read that people say its not a good move to refinance, as you are resetting your loan again. Please advise on this, thanks!!.

Got 2 property. 1 already fully paid, 1 still on loan. Can both be refinance? Like to get some cash fund to grow my business, hope can guide/assist me.

Refinancing takes about 1 week for the offer, and 2-3 months (could be more though) for money to be released...

1. If you first got the property financing in 2010, your rate may be a little worse or on-par with the current market rate, which starts at about 4.25% and above, it may be ok to refinance to get a better rate, but if  you need the money instead....

2. Refinancing for cash is one the cheaper options available out there.. it is cheaper than personal loan, hire-purchase, cc... if you have the cash to fund your business/studies/etc. sure, don't refinance, don't reset and extend your mortgage... but at this point you need the money to continue your studies... you have the option between:

a. personal loan, 10 year tenure and 8%~ above rate (unless you get good deals from your company)
b. friends/family loan, which is dependent on the situation
c. refinancing, 35 year tenure (you can choose to take 10 years by paying more each month through a flexi account) and rates start at 4.25%...

Sure you are resetting your mortgages and paying more interests, but you if don't need the money from a loan you wouldn't need to discuss it anyway... keep in mind that not everyone is in the position to refinance their properties, many people don't have any asset to mortgage, so they need to take personal loans or credit card cash advance instead
Yes, can, not an issue. The only issues would be to show proof that you have enough income vs banking commitment, also referred to as debt-service-ratio (DSR), to fund the refinancing of the properties.

Your incomes can be in the form of business income, employment income, investment income, or a combination of them

2-3 months process.. any info which process that consumes too much time? Land office? What are the process after signing the docs?