Takeaways:
Generally, people transfer a mortgage between banks because they want to get a lower interest rate than the initial bank. That way, they can pay off the total mortgage with lower costs than the initial estimate.
The procedures and requirements needed are not difficult. If you have a good credit history, good repayment availability, and meet the requirements that are not much different from your initial mortgage, everything should run smoothly.
To transfer a mortgage from the initial bank to a new bank, you need to:
With this process, there are new mortgage fees and a penalty fee on the initial mortgage.
A penalty fee is for paying off the mortgage earlier than scheduled. You can find this amount in the mortgage agreement with the initial bank. If you don't know, you can ask the bank directly. Generally, the penalty fee charged by the bank is between 1% to 3% of the remaining outstanding debt. However, the exact amount depends on the bank.
As well as the penalty fee, you'll also have to pay new mortgage fees to the new bank. These fees usually include appraisal fees, notary fees, Deed of Encumbrance (APHT), Power of Attorney Imposes Mortgage Rights (SKMHT), bank provision fees, insurance and processing fees. Generally, the amount is around 7% of the ceiling amount. But again, it depends on the bank you choose.
To help things run smoothly, first know the mortgage penalty from the initial bank. Then think about the loan ceiling amount you need from the new bank.
HSBC Home Loan provides many different programmes suitable for different types of financing, such as property purchases, mortgage takeover, and even a top-up facility for your existing mortgage loan. HSBC also offers competitive fixed interest rates with a fast and simple process.
