How to get a leg up on your property financing and refinancing journey

Buying a property is never a one-off journey - for most of us, it is a long-term commitment.

After reaching a decision on the property you would like to purchase, the next step is to work out the details of how you will pay for your purchase. And through the years, there will often be plenty of opportunities to save on your instalments by refinancing your property loan.

Whether you're buying a new property or refinancing an existing property loan, having an experienced mortgage advisor can help you navigate this important episode in your life smoothly. Here's how:

Get answers from experienced advisers

It can be very daunting to have to figure out all the intricacies of property financing on your own, especially if you are a first-time property owner. Even for personal finance wizards or seasoned property buyers, it is always helpful to have an experienced mortgage professional to provide mortgage guidance and advice.

Partnering Citi's mortgage advisor can help cut through the fog of confusion, save you time and give you peace of mind when making such a major financial decision.

First, Citi's website offers a mortgage calculator that illustrates the projected payments and also the interest savings that you can enjoy with Citi's mortgage loan interest offset feature.

This information then helps you make a decision about the total mortgage amount, you are willing and can afford to take up.

Citi's experienced mortgage advisory team is on hand to provide advice on your property purchase process from start to end, as they guide you step by step through the entire experience of purchasing a property.

Unlock new possibilities with property loan refinancing

Through your property ownership journey, you will cross many milestones which often present good opportunities to refinance your property loan at more favourable interest rates.

Catalysts arising from your current property loan can include reaching the end of your lock-in period, increased loan interest rates, and expectations of rising interest rates.

These serve as gateways for many owners to shop around other banks for more "pocket-friendly" arrangements that can yield significant savings - for example, refinancing a property with a S$800,000 outstanding loan amount that has 10 years left, at a fixed rate of 1.5 per cent, instead of 2 per cent, could save you S$178 a month.

Citi offers many opportunities for property owners to save - for example, a legal fee subsidy to help property owners defray the upfront costs, subject to applicable loan terms and conditions.

In the above example, you could save up to S$2,500.

Pick from a wide range of mortgage solutions

Moreover, Citi's mortgage interest offset scheme can help you save more over the years. That means that if you take up a floating interest rate package, you can use interest earned from your Citi deposits to offset your mortgage loan interest payable. With Citi, you can choose from a range of mortgage packages, including variable, fixed or hybrid loans (a mix of fixed and variable rates).

In particular, hybrid loans can be the best of both worlds. This arrangement allows you to benefit from more stability in planning (especially helpful for the risk-averse or for young families) while still enjoying the potential upsides from the changing interest rate environment.

You can also speak to Citi about using eligible financial assets, such as investment funds, to improve your loan eligibility. This may vastly increase options for professionals who have a significant investment portfolio in addition to their salary, or those who are enjoying their golden years but have built up a nest egg of investments over their lifetime. Citigold and Citigold Private Client customers can enjoy preferential mortgage interest rates. Citigold Private Client customers can also enjoy exclusive benefits such as no lock-in mortgage packages.

Are you ready to embark on your property financing journey? Check out Citi's mortgage promotions on its website here.