View Full Version : Refinancing problem
Hi guys, just wanna ask for advice on what I can do in my situation. Recently, sign with Maybank to refinance my 1+1 condo loanfrom OCBC. The Maybank banker had a copy of our contract with OCBC and did not point out to us that we are still subject to penalties if we refinance like legal fee clawback. He calculated for us when we asked him twice if we will get any savings and reassured us we will as interest rates set to rise. He also promised us legal subsidy with Maybank which later he said was not approved. Do we still have to pay cancellation fee if we dun wanna go ahead as with the legal fee clawback and lack of legal subsidy with Maybank, it does not seem worthwhile to go ahead. The lawyer appointed by Maybank are rushing us to complete some questionnaire before they can go ahead but we dun wanna go ahead anymore so playing delaying tactics.
Just tell them you don't want to refinance, and ask them what is the cost.
I believe the cancellation fee is 1.5% of the loan amt which comes up to almost 6k or min 1k if they r nice. My hubby is very insistent that it is their fault and even says wants to bring up to CASE or MAS but I think partly our fault for not doing due diligence..he argues it was the Maybank banker duty to advise us properly.
I dun understand this : if the letter of offer from maybank does not contain legal subsidy, why did you sign on it ?
He verbally told us that he will add an amendment that legal subsidy will be provided that was why we signed.
Please look out for clauses that impose redemption fee and partial payment fee, even if you redeem or make partial payment after the lock-in period. I was not careful and end up paying 1.% redemption fee even though the lock-in period was over several years ago.
He verbally told us that he will add an amendment that legal subsidy will be provided that was why we signed.
Never trust sales talk from a salesman unless it's in black and white? Is there a cooling off period in which the contract can be nullified?
He did ask us if we still want to go ahead after saying no legal subsidy but did not point out the legal fee clawback from ocbc which we just realised today.
He did ask us if we still want to go ahead after saying no legal subsidy but did not point out the legal fee clawback from ocbc which we just realised today.
Like that I'm afraid you have no case ... You knew there would have no legal sub.
ocbc side legal clawback is a very common clause, you cannot really blame him for not reminding you. I mean seriously, you cannot depend on him to tell you what money you will lose/gain, can you ? It's your money.
For example, he can always say, " your ocbc is floating rate, who knows next year ocbc will raise floating rate to 5%, then my fixed rate savings will definitely be large enough to cover your legal cost. "
Actually problem not with me, I am ok to go ahead but hubby very insistent on not going ahead even after I offer to pay his share....we have another refinancing loan of a much larger amount with Maybank which I do not want to jeopardise because of this too...
Ocbc was 0.75% + sibor 3mth....or something like that....
I think you have no case against Maybank as the Sales person may or may not be aware of the OCBC's claw back clause in your Agreement and this fee is usually not that high to be a deal breaker for a long term deal. The legal fee clawback by OCBC will be around $2k if I am not wrong. If your deal with Maybank is still beneficial despite the clawback amount, then should go ahead.
I think you have no case against Maybank as the Sales person may or may not be aware of the OCBC's claw back clause in your Agreement and this fee is usually not that high to be a deal breaker for a long term deal. The legal fee clawback by OCBC will be around $2k if I am not wrong. If your deal with Maybank is still beneficial despite the clawback amount, then should go ahead.
There is also a cancellation fee and valuation fee clawback and Maybank's legal fee and valuation , all adds up to about 7k so we think prob not worth it. Consulted CASE today who advised going to FIDREC who advised writing in to Maybank first and wait up to 4 weeks for their reply. If necessary, they can mediate FOC, if still fail, pay $60+ to go for arbitration...issue is we were not given appropriate advice...
MortgageGuru
07-05-15, 15:33
There are always a lot of small details which you won't know unless pointed out to you vividly.
Banker have no obligations to tell you that you'll incur what penalty when you refinance as they're not your existing financier banker, they can't be bothered if you're paying any cost to it.
In any case, how long is your lock-in period left to go?
There are always a lot of small details which you won't know unless pointed out to you vividly.
Banker have no obligations to tell you that you'll incur what penalty when you refinance as they're not your existing financier banker, they can't be bothered if you're paying any cost to it.
In any case, how long is your lock-in period left to go?
For BUC property, is it common to have no lock-in period but penalty clauses for cancellation of any part of the loan?
StormyNormy
07-05-15, 16:13
For BUC property, is it common to have no lock-in period but penalty clauses for cancellation of any part of the loan?
From my own I can say yes it doesnt have lock-in period but you need to allow the full loan amount to be disbursed. Any undisbursed portion will constitute a penalty.
From my own I can say yes it doesnt have lock-in period but you need to allow the full loan amount to be disbursed. Any undisbursed portion will constitute a penalty.
Thanks!
MortgageGuru
08-05-15, 01:06
For BUC property, is it common to have no lock-in period but penalty clauses for cancellation of any part of the loan?
usually there will be cancellation of 1.5%, aside from the regular lock-in period and undisbursed amount.
My hubby wrote in to Maybank to complain about us not given appropriate advice and they actually agreed to waive off abortive charges! So very happy....
My hubby wrote in to Maybank to complain about us not given appropriate advice and they actually agreed to waive off abortive charges! So very happy....
In SG, most important is to learn the skill of writing an outstanding complaint letter.
In SG, most important is to learn the skill of writing an outstanding complaint letter.
Yeah man, he wrote a pretty fierce letter...he is also very good at writing in to the traffic police to get our fines waived :)
Yeah man, he wrote a pretty fierce letter...he is also very good at writing in to the traffic police to get our fines waived :)
But actually I found it a little odd that your hubby and yourself should easily be earning in the top 10th percentile of households here, provided I am not mistaken about what was read sometime back. Why bother with these little sums here and there? So much time and energy vested, unless you guys find it fun and engaging...
I was more of the opinion that some of these investment options (MMs, Malaysia properties) are more pitched at the middle to at most the 70th percentile income group.
Surely there are many more other kinds of hassle-free investment opportunities that avail to you?
But actually I found it a little odd that your hubby and yourself should easily be earning in the top 10th percentile of households here, provided I am not mistaken about what was read sometime back. Why bother with these little sums here and there? So much time and energy vested, unless you guys find it fun and engaging...
I was more of the opinion that some of these investment options (MMs, Malaysia properties) are more pitched at the middle to at most the 70th percentile income group.
Surely there are many more other kinds of hassle-free investment opportunities that avail to you?
Actually, I dun think we r at the top 10th percentile of household income as his job is a bit unstable, hence income variable. More likely, middle or upper middle income....
wildfaye29
11-05-15, 09:54
mummy, sorry to tag on this thread, just wana ask a quick question.
if a redemption notice has been servedto the bank (3 month notice), can the redemption be cancelled?
anyone knows?
MortgageGuru
11-05-15, 10:13
mummy, sorry to tag on this thread, just wana ask a quick question.
if a redemption notice has been servedto the bank (3 month notice), can the redemption be cancelled?
anyone knows?
Yes you can. However, there will be cost incurred definitely.
Yes you can. However, there will be cost incurred definitely.
Hello Mortgage Guru
I have friend who need money urgently to settle some business debts. He has 2 properties, on little loan.. possible to refinance the property and take out some cash from there? how long it takes?
MortgageGuru
11-05-15, 11:42
Hello Mortgage Guru
I have friend who need money urgently to settle some business debts. He has 2 properties, on little loan.. possible to refinance the property and take out some cash from there? how long it takes?
Yes he can, it takes up a few months time usually.
wildfaye29
14-05-15, 11:08
Yes you can. However, there will be cost incurred definitely.
Thanks
Powered by vBulletin® Version 4.2.2 Copyright © 2024 vBulletin Solutions, Inc. All rights reserved.