What is refinancing?
Refinancing or remortgaging happens when you switch the mortgage you currently have on your property, to a new bank. Reasons to do so:
- Interests saving. Our Japan mortgage consultant will calculate the savings.
- Home loan tenure extension
- Loan restructuring (eg existing owner buying over the share from another co-owner)
- Mortgage is no longer available by existing bank
Refinancing considerations
Typical fees are for conveyancing and valuation. Conveyancing work is performed by lawyers or in-house. Inspection is required too, carried out by an appointed valuer. There could be fees imposed by banks for processing and administration.
Non-residents and foreigners investors may choose variable or fixed rates. Usually, fixed rates are higher because you pay a premium to protect against rising interest rates.
Some banks accept properties in selected catchment areas (also known as wards) in Japan and Tokyo. The mortgage purpose must be for investment only.
Your first step should be to check there are no penalties to move from your existing mortgage. Our Japan mortgage advisors will assist to ascertain that. After that, we will work together to compare and shortlist the right investment mortgage from Singapore.