Hi Sifus,

I was told that during underconstruction period, we are not allowed to refinance. Is it true?

What's the purpuse you wanna refinance in this stage? to reduce interest?
what's the interest rate for the loan currently? And penalty amount?

Refinance or you're planning to sell during under construction?

just to refinance

Have to wait for a mortgage consultant to your question.
But if you ask me, usually banks don't accept refinance for under con property because there's still no actual collateral. Unless the developer is under the bank's trusted list.

This is something that bank officer also cannot help, they will just ask you to refer to the loan agreement. Some REALLY nice ones may help out la. Check out the loan letter you got, the reason is that every person may have diff terms and conditions. Some restrictions are by developers, some by banks, some none.

i dont think it can be do so. If can also very hard and troublesome,
Bank will ask you to wait for the money fully disburse then only refinance.
By the way, can tell us whats the current rate for your loan?

no, u can't refinance when property under con.

btw, even if u refinance, they new loan only offers about 85% for condo, and 90% for landed. during construction period, u pay only interest, principal is untouched or unpaid for in any way.

so, if say ur loan amount was RM200k with the original bank, new bank can only offer u RM170k if condo unit. so u need to settle RM30k with ur original bank plus other admin & lock in period charges just to settle the original loan amount, not to mentioned all the interest u've paid during construction.

that oso depends on the value of ur property. If your property is valued less than ur earlier purchased price, u have bigger problem. cos for refinancing case, bank will only offer max 85% for condo & 90% for landed based on current market value of ur property.

based on current economic situation, property prices has dropped by about 12-13% from its original price. so u will get refinance offer much less than ur original bank loan amount.