i am wondering if it makes sense to refinance my homeloan. it's only 1 year plus down the tenure. i currently have BLR -1.95 whole remaining tenure and aroun 380k outstanding. this is zero entrycost, no mrta or anything like that, flexi loan, can make payment anytime, can withdraw anytime (no fee). am looking for a flexi-loan, zero-entry cost. any banks can offer a deal that makes it worth paying the early settlement fee?

onnying88,

thanks for the tip. do you think i can still check with my bank for a better rate? not sure if it's even worth it but well... a penny saved is a penny earned

I'll take it into consideration. i think i'll need around 10 years to finish so if the offer is decent and the lock in is just 5 yrs then not so much of a problem.

i dont agree that this holds for all cases. for normal cases where you intent to fully serve the tenure yes, ZEC loan is more expensive. but if you take a 30 / 35 yrs loan package fully knowing you need say 10 yrs to settle only, the bank can not factor in the entry cost properly and you end up significantly better. for example we took a ZEC loan much higher than needed to get a good ZEC package with lower rate. then paid back 35% straight away and keep paying the orginally calculated rate + extras depending on the alternative profit rates. loan should be paid back within approx. 8 yrs. i think the ZEC provided a significant reduction in costs in that case. all i'm saying is that there are situation where you can benefit from ZEC due to your very personal repayment structure.

wilz,

currently on BLR -1.95 but still in lock-in with RHB. loan amount exceeds 500k, outstanding above 300k. for refinancing - can i get BLR -2.3 or should i just talk with RHB (which apparently hasnt yet joined the "war"). do you negotiate rate adjustments with banks too (what's the price)? if i can get RHB to give me BLR -2.x then i'd be happy.

thanks

wow vong,

this is some statement. if i would believe that what you said is true i'd be ever so much worse off.

let me ask you how is your salary paid? by the bank from the profits they make from their customers. it's naturally in your best interest (and the banks) to give me the worst deal that you can get away with. anything else would be a bad business modell. this is why customers will and should use ways to make banks compete for the loan. only then better offers will be laid on the table. you seriously want to claim that if i ask you nicely you will make sure i get the very best deal in town because you fought for me? i dont think so. when i go loan shopping i NEVER get the best deal by just asking one banker and then hope for the best. of course you must compare and haggle. it's just like making any other purchase- customer dont want to haggle, his loss.

and one more question: what sets loans apart from each other? the smile from the loan officer? how often do i have to see them? probably not too often. what other services can i get? i get my loan, pay my installments, make add. payments and renegotiate if necessary to get even lower rates - or i leave. if you have a big loan you get better rates by default already and even better rates if you ask for it. i am actually currently having my loan with a bank i dont like a lot at all because they gave me the best deal in town. i'll pay and leave them again - its just business afterall.

but then again you might be the exeption here. i dont think however that your suggested strategy will serve a whole lot of loan seekers well.

currently in negotiation with RHB for rate adjustment. what is the lowest rate i could possible get for a loan between 500k and 1 M with perfect credit history and no other outstanding loans of any sort. got offered BLR -2.5 after some haggling from alliance. i wonder if i can possibly can get any better rate. since i am under lock-in with RHB my nego power only good if outside offers can also offset the penalty. RHB is willing to adjust to BLR -2.2 at the moment unless i can find an even better rate than -2.5 outside for them to "consider".

thanks for any info on this guys!

tiffneedle,

rates after first year?