Why do people choose refinancing loan? It could be due to them seeking for lower interest rates, or more affordable installment amount for repayment of debts. Additionally, it could also be for their children’s education, capital for starting up a new business or as an emergency fund for medical costs. This would also create the urgency in our lives hence causing us to refinance our assets.
However, due to Bank Negara Malaysia’s requirement, nowadays refinancing may not be easy to get. BNM’s new ruling states that the maximum tenure of such loan is only 10 years tenure. This is because BNM wants to manage the household debt of all borrowers.
Cash out portion from house refinancing falls within the definition of such loan. Hence it requires the borrower to fully settle the cash out portion of the debts within 10 years. This would also mean the installment repayment would increase because you need to fully repay within the stated tenure.
In most instances, people would consider refinancing to get extra cash out for additional financing. However, because of this rule tightening, not many people are able to qualify for refinancing. This is because their commitment has already max borrowing capacity, coupled with a shorter tenure, they just cannot afford much cash out the loan from the refinancing.
What other options for refinancing?
Why complicate your life when you can have a simple solution from our company? We assist to find a loan that is suitable to your needs with better features, get a better interest rate and payment term. In addition, when you refinance, you want the process to be quick, effortless and improve your cash flow without going through the hassle.
Firstly, we would assist customers to understand their financial standings. This is done by getting their outstanding balance of mortgage and remaining years of mortgage. Next, we will educate them on information regarding the new loan such as the current mortgage rates and number of years to pay off.
By doing so, customers are able to get a clearer picture of how refinance works and not be in the pit hole of running around in circles of not knowing what to do. Customers can also opt for our services to clear off all unfavorable outstanding debts such as credit card debts or car loans before proceeding to apply from commercial banks.
By doing so, homeowners are able to further understand how this process works. What homeowners need to understand is that they will have a larger debt, comprising original debts plus cash out amount. Thus, in times of need or emergency, refinancing is an easier way out of getting cash. However, it may have longer term implication of having a larger debt.
Some borrowers may use the cash out amount to settle their current personal loan or credit card outstanding amount. The main reason borrowers request refinance loan from private lenders is because of fast approval and quick disbursement.
Should the bank reject your refinance loan application, you can consider getting a private refinance loan from us. Do contact us for further enquiries and we will be glad to attend to all your financial needs. We cover KL, Selangor, Negeri Sembilan, and slowly expanding across Malaysia. Within Selangor, we cover area such as Petaling Jaya, Shah Alam, Putrajaya, Klang, Setia Alam, Ampang, Gombak, Subang and Puchong. In KL, we have agents in Cheras, Kepong, KLCC, Setiawangsa, Sentul and Pandan. Whilst in Negeri Sembilan, we specialises in Port Dickson, Seremban, and around Negeri Sembilan.
We do offer refinancing with the banks, and refinancing with private money lenders. For private lenders, the rates might be slightly higher, but they do offer easy approval process, fast disbursement and flexible tenure. The most important is that we can solve your urgent financial needs.