Are you paying too much interest on your loan financing? We have a few simple tips for you.
Your existing loan on your property mortgages, businesses, working capital, term loans, homes, equipments and machineries may have been taken up many years back when the interest rate environment was vastly different. Interest rate policy changes frequently according to the economic environment and government’s policies.
Secondly, some financing interest rate plans are tied upwards, so it is likely you are paying more when your loan is “stale”. Example, 1st yr Sibor + 0.75%, 2nd yr Sibor + 0.85%, Thereafter Sibor + 1.25%. Refinance and Refresh your financing plan to enjoy savings and reduce your financing cost.
2) Reduce the loan tenure
Let’s do a comparison for a $100,000 mortgage loan at 1.5% /yr over 20 yrs vs a $100,000 loan at 1.5%/yr over 25yrs. The proportion of your monthly instalment is about 25.87% (20yrs) vs 31.25% (25yrs) respectively. Stretch the loan to a 35 yrs tenure and the ratio goes up to 40.8%. That means that for every $100 monthly repayment instalment, $25.87 (20yrs) goes into paying your interest vs $31.25 (25yrs) vs $40.80 (35yrs) every single month. Add that up over 25 to 35 years and your savings are massive.
3) Engage the experts
Seek expert’s help and advice for the finest and best-valued solutions for you and/or your business. That is what they do every day for a living. Their time and work is focused purely on sourcing the best financing solutions for you, providing you value-added convenience, savings, time and headache sorting out the financial jargon and information.
Last but not least, as an Independent Advisor, they stand neutral to offer you impartial advices only for your maximum benefits. Contact us to discuss your savings today!