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Refinancing refers to switching your existing housing loan to a different financial institution in order to enjoy savings from a better package with lower interest rates. It could result in you actually repaying your housing loan in a shorter period, or cashing out (taking an additional equity loan on your property) from your new financier for some much needed cash. Cashing out is a good option if you have other attractive investments that can turn in a higher profit vis-a-vis the interest that is borne on the housing loan. This can be achieved as long as the collective refinanced amount falls within a certain percentage of the valuation of your property.

You should consider your net savings to see if it’s worth the effort to switch. It is important that you check out the following when contemplating to refinance your existing loan (or not):

1.	How much am I paying for my monthly repayments?
2.	Am I overpaying for my housing loan as a result of higher interest rates?
3.	Can I enjoy lower interest rates to save more money?
4.	Are my monthly instalments fully financed by my CPF or am I `topping up hard-earned cash to cover the shortfall?
5.	Is my savings account depleting due to higher monthly repayments?
6.	How can I repay my housing loan within a shorter time span so as to save on interest payments?
7.	Should I refinance?
8.	Will there be any prepayment penalties imposed? Can the new financier subsidise the charges that I would incur (if any)?
9.	What are the costs to be incurred when refinancing? Would I get any form of subsidy for the cost incurred?
10.	What are my immediate and mid-term savings?
11	What are the rates and packages offered by the other financial institutions?
12	What is the best rate currently offered in the market?
13	Can the new financial institution provide me with any additional funds and/or more flexibility to suit my needs?
14	What are my short- and long-term objectives?
15.	Do I have any immediate needs or opportunities that are causing me to consider refinancing and/or gearing up / cashing out?

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Refinancing your existing loan could be a good option if you find that your current housing loan can no longer meet your needs, or are dissatisfied with existing interest rates. With prudent mortgage planning, refinancing could save you some hard-earned money. Consider these factors before making the switch:

You should be free from any lock-in period so that no penalties would be imposed. (But not to worry; if there are penalties involved, we can arrange for the new financier to subsidise the penalties.)
You must switch financier to enjoy better rates.
You should have a very good understanding of all the various types of loans and promotional packages that are offered in the market today before committing to any refinancing exercise.
You should have a comprehensive mortgage plan detailing every aspect of your housing loan/s and the exact savings that you would be enjoying over a predetermined period of time prepared.
If you have any need for cash liquidity, be it short-or mid-term, cashing out / gearing up from your existing housing loan would be a wise option for it bears the lowest cost at this time.
The prevailing valuation for your property must be able to support the quantum to be refinanced. (All financial institutions have their respective credit guidelines that govern refinancing and/or cashing out.)