Let’s show you the costs vs benefit and why it’s almost free when you refinance through us.
What You Pay
Costs
For those new to refinancing, there are always two costs involved: Legal fees and valuation fees.
Legal fee: $1,800/1,600 (for private/hdb)
Valuation fee: $400/200 (for private/hdb)
The fees above serves as a guide on the average costs for outstanding loan balances of below $3m and for private properties valued usually at no more than $1.5m or smaller than 1300 sqft. Note valuation fees can range between $350 to $550 for condo units and even higher for landed properties. Still, most banks will be able to get valuation at around $400 for typical condo sizes.
Total costs for average homeowner = $1,800+400 = $2,200
(Legal fees can be paid via CPF in some cases so cash outlay is reduced)
What You Get
Benefits
Most banks eager for your business will offer a legal subsidy or cash rebate of up to $2,000 if you move your loan over. And when you refinance through us, we add a $150 gift card (Fairprice) subject to min loan of $500,000:
Legal subsidy/rebate: $1,800-2,000 (from bank)
Valuation fee offset: $150* Fairprice gift card (from us)
We give a token gift of $150, not in cash, but in form of Fairprice gift card which helps to offset some of your transaction costs, subject to min loan $500,000. The new bank will also give you a legal subsidy or cash rebate depending on your outstanding loan amount (usually not less than $500,000), provided you stay with them for not less than 3 years (clawback period).
Total maximum benefits for average homeowner = $2,000+150 = $2,150
(when you refinance through us here at MortgageWise)
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