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How This Condo Owner Scored Monthly Mortgage Savings by Learning to Manage His Home Loan

How This Condo Owner Scored Monthly Mortgage Savings by Learning to Manage His Home Loan
How This Condo Owner Scored Monthly Mortgage Savings by Learning to Manage His Home Loan

If you’re a homeowner financing your property with a floating rate bank loan, chances are, you’ve observed that your mortgage instalments have increased considerably in the past year.

Compared to the near-zero interest rates seen during the COVID-19 pandemic, interest rates are now considerably higher. A quick search on the PropertyGuru Finance Mortgage Comparison tool reveals that the lowest mortgage interest rates offered start at 3.75% (as of 10 March 2023).

Maybe you’re panicking slightly as you realise your monthly housing payments are eating into your daily spending budget. And perhaps you’re now wondering, “What can I do?” This is the situation Rizky Budiyanto, 38, was in.

But through a stroke of fate, the Creative Director stumbled across PropertyGuru Finance and learnt about the available online tools and resources needed to secure a more competitive home loan. Here’s how the condo owner learnt how to actively manage his home loan and save himself a few hundred dollars every month.

Dealing with High Interest Rates and Home Loan Application Processes

Before coming into contact with PropertyGuru Finance, Rizky professed that he was “pretty ignorant” about taking an active approach to managing his home loan via refinancing. He perceived refinancing as a cumbersome endeavour with opaque processes. Having to deal with paperwork, compile the relevant documents, and navigate the various steps was off-putting.

“As a typical creative person, I do find banking and finance to be complex and filled with mortgage jargon. It led me to approach it only when necessary.”

Rizky believed a mortgage was just another recurring expense you could take a hands-off approach. That’s why he initially opted for a bank loan with a longer lock-in period to manage his home loan as little as possible.

However, this “out of sight, out of mind” strategy had drawbacks. As Rizky was not actively monitoring his home loan, he didn’t realise his home loan lock-in period was over. He was now servicing a home loan with a 4.925% interest rate, way higher than what he was comfortable paying.

[ArticleCallout]{ “title”: “Interest Rates Are Expected to Increase Further In 2023: How This Affects Your Mortgage in Singapore<br><a href=\u0022https://www.propertyguru.com.sg/property-guides/author/joannepoh\u0022></a>”, “excerpt”: “Read more here.”, “link”: “https://www.propertyguru.com.sg/property-guides/pgf-rising-interest-rates-post-covid-57668”, “image”: “https://img.iproperty.com.my/angel/1110×624-crop/wp-content/uploads/sites/3/2023/03/PGF_MMM_Article_Enhancements_Interest_Rates.png” } [/ArticleCallout] [ArticleCallout]{ “title”: “Refinancing Versus Repricing – See Who Wins the Ultimate Battle!”, “excerpt”: “Read more here.”, “link”: “https://www.propertyguru.com.sg/property-guides/refinancing-vs-repricing-mortgage-broker-banker-62971”, “image”: “https://img.iproperty.com.my/angel/1110×624-crop/wp-content/uploads/sites/3/2015/04/25102453/hero_img_mortgage_broker_banker_HD.png” } [/ArticleCallout]

Chatting with PropertyGuru Finance Mortgage Experts

During this time, he got into contact with and talked to someone on the PropertyGuru Finance marketing team.

“During our chat, I briefly mentioned how I was shocked by my current mortgage rate. She then introduced me to one of the Mortgage Experts on the team to see if they could help me refinance my home loan.

The Mortgage Expert and I sat down for a detailed one-on-one chat. He explained everything about the refinancing process in layperson’s terms to me,” Rizky shared.

Tracking Loans with SmartRefi for the Best Deals

During this time, Rizky also got to know about PropertyGuru Finance’s SmartRefi tool.

For the uninitiated, PropertyGuru Finance’s SmartRefi tool tracks your existing mortgage against daily rates and available loan packages. Whenever SmartRefi identifies a favourable package, it will send you an alert so you don’t miss out on a golden refinancing opportunity. And when you’re ready to refinance, you are directed towards a Mortgage Expert who can help you secure the mortgage package.

“The SmartRefi tool is straightforward to use. All I had to do was key in my remaining mortgage amount and relevant loan details. Then, the system will let me know if it is the right time to refinance or if I have already gotten the best rate,” Rizky explained.

Learn More about SmartRefi

Taking an Active Hand in Managing Your Home Loan: Lessons Learnt

With the SmartRefi tool and some help from a Mortgage Expert, Rizky learnt more about refinancing and how to actively manage his home loan. With the knowledge he gained from learning about refinancing home loans, Rizky assessed his available mortgage alternatives and decided he would rather stick to his current bank. Though he did not end up refinancing his home loan, he did secure a new loan with a better mortgage interest rate.

For those looking to save on their mortgage but don’t know where to start, you can consider refinancing your home loan and contact PropertyGuru’s friendly Mortgage Experts to help you. They can assess your home financing situation and offer you tailored, professional advice – all at no cost.

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Disclaimer: Information provided on this website is general in nature and does not constitute financial advice.

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