Do You Think You Might Be Paying Too Much For Your Housing Loan?

You took up a housing loan package with a bank couple of years back. Just how many years has it been since the last refinance or that new purchase? Maybe you can not recall due to your heavy workload and various lifestyle commitments. Are you paying too much for your housing loan right now?

Many consumers often wonder if they are paying too much for their housing loan. This is especially so when consumers tries to refinance by themselves without the full knowledge of the mortgage market. After they signed that piece of paper called the "Letter of Offer", they start to think: "Hey, there might be a better housing loan package out there and I might be signing away with a sub standard loan right here!" This type of mentality is very common as everyone wants the best for themselves. There are some steps which you can undertake to prevent the above situation from happening.

Before I go on, there is one important point to clarify. There is nothing such as the best housing loan available. Everybody has different financial and credit profile. What your mortgage advisor can offer you is the best housing loan package according to your credit profile. To know if you are really paying too much for that housing loan also depends a lot on your mortgage advisor. Your bank officer can only offer you the packages from his bank. That can really limit your choice and increases the probability of you paying more for your housing loan. By working with the right advisor, you expose yourself to more choices and can greatly enhance your shopping experience.

Alternatively you can try to minimize your payment by making sure that you shop around extensively for your lender. If you are a busy professional, try using the service of a mortgage broker or consultant, they can help you shortcut the process by offering you the best rate for your financial profile.

Once you have decided on a specific housing, take note of the expiry date of the lock in period. Key in a reminder in your organizer scheduled approximately about six months before the expiry of your lock in period, asking you to fix an appointment with your mortgage advisor to explore refinancing options. Do not fall into the habit of comparing your housing loan to other packages right after you have signed the contract. Anyway, to try to change your housing loan right now might evoke several penalties from the bank. Although your mortgage broker can assist you in getting another bank to pay off those penalties, it is only worth considering for certain people in the right situation.

Zeng Han Jun is the Business Financial Manager of Chan & Partners Consulting Group. He actively contributes articles about business and finance on a weekly basis, so as to share his knowledge with the financial consumers. He specializes in mortgage advisory and business brokering services in Singapore. He has been directly involved and plays a crucial role in marketing and sales of businesses in CPCG. He also provides advice on various kinds of mortgages and construction financing for private individuals.