For this loan product, it depends on the specific building society and the status of the loan agreement . If the loan is in the so-called regular loan phase, it is possible to refinance at any time and at any savings bank, either part or all of the debt. On the other hand, in the case of the so-called intermediate loan or bridging loan, it depends on the specific building society . For some, it is not possible to pay back at all. For others, a fine for which it does not pay.
However, there are a number of options where refinancing is possible and, moreover, it pays off to the debtor. Savings on higher loan amounts amount to hundreds of thousands of dollar. It is advisable to consult the financial advisor as soon as possible.
What can be refinanced
1 / Building savings loan – if the client refinances this regular loan, it is always possible.
2 / bridging loan / intermediate loan – in this case it depends on the building society or on the conditions given by the loan contract
Building savings loans Read article 1 / Reduction of interest rate and hence total overpayment
2 / Extension or shortening the maturity of the entire debt obligation
3 / Increase the current debt by additional funds (for reconstruction, completion, car, etc.)
4 / Possibility to use the effect of mirror mortgage
5 / Set the interest rate fixation period
Choosing a suitable refinancing loan
The suitability and type of credit should be discussed individually with a financial expert . Very often the current savings banks can withdraw from the existing expensive conditions. However, this is only possible if a competitive / cheaper bid is submitted. Therefore, it is advisable to go through more options with a financial expert and then push individual banks to more interesting conditions .
The difference between the interest rate of the building savings loan and the mortgage loan may be in the range of 1 – 5%. It depends on the signing time on the choice of credit tariffs. Despite these interesting differences, it is not always possible to refinance such a loan and sometimes it does not even pay off.
For comparison, it is good to reach a good financial advisor who will calculate everything.
Practical example: Refinancing an inter-loan with a target amount of USD 2,100,000
A young couple with two young children 3 years ago made a building savings with immediate intermediate loan for the construction of a family house – a total commitment of USD 2.1 million. Fortunately, it was a savings bank, where it is possible to repay the inter-loan with a relatively low fine. The couple asked for advice and to calculate the suitability of refinancing. The result was a total savings of about 700,000.- on interest. Moreover, they used the Mirror Mortgage principle, which saved another 150,000 USD.
Benefits of meeting a comprehensive loan specialist
- Non-binding and free consultation
- Find all energy saving options
- Settle administration in one place
- Discuss possible combinations you will save on
- Calculate multiple banking houses for easier orientation without losing your precious time
- Select the bank that best suits your requirements
- You do not have to circulate the banks and find out the differences and make a difficult analysis