Why you should Refinance your Mortgage in Singapore

Why you should Refinance your Mortgage in Singapore – Congratulations for being a property owner, as an investor or as a home owner, having a property means having an asset. Assets are great in this market where capital gains are strong and especially in Singapore. Singapore is a small nation with very limited land and this makes property prices in Singapore move upwards for the past many years and is expected to continue its gain for the foreseeable future.

With this the government has taken on strong policies such as those of additional buyers stamp duties (ABSD, you can visit IRAS website to learn more about ABSD if you are keen) to cool the market down so that investor or speculators will slow down their pace and not cause a bubble in the property market in Singapore.

When you invest in a property, you will wish to maximize the income you can generate from the property. Property investments means you should try to buy low and sell high but at the same time, through much of the investment ideologies to also use other people’s money (bank’s money) to do your investments.

The good thing about this form of investment is when you buy a property you only need to make a down payment of roughly 20 to 25% of the whole property value. The rest of the amount can be borrowed from the banks through a Mortgage Loan arrangement.

Banks are willing to lend you money because Singapore has a strong and robust property market and if you are not able to pay up your mortgage, the bank will repossess that said property. And they can in turn sell it to recoup the losses they suffered.

So for most people who do end up investing, why is it important that you should refinance your mortgage in Singapore?

Singapore Mortgage Refinancing is important to decrease your overall outlay in terms of rental cost. By doing a refinancing after your lock in of 2 or 3 years, you will be able to adjust downwards your interest rates that you are paying for.

For most banks that have a fixed rate, usually there will be an increase of close a 0.5% to 1% amount after you are out of lock in.

This means every month, if your loan quantum is 1 million Singapore dollars, you might be paying close to $1,000 more a month in interest.

This will bite into your actual income from a property investment and end up not earning you much money from actually buying a property in Singapore.


At Avant Mortgage we sit down with our Mortgage Loan Clients to assist them to understand how to go about getting their Mortgage Loans arranged and get them the best rates available in the mortgage market.

We look forward to helping you get the best deals and save money on your interest with Singapore Mortgage Refinancing Services.

Why you should Refinance your Mortgage in Singapore



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