45% of Singaporeans feel unwise to refinance within lock-in period, a top home loan misconception hampering opportunities to save money
SINGAPORE – Media OutReach – 18 January 2021 – PropertyGuru Group, (“PropertyGuru” or the “Group”), Asia’s leading property technology company, today revealed Singaporeans’ top misconceptions around home loan refinancing, according to new research conducted between 23 October to 30 November last year.
When asked for the reasons for not refinancing their home loans, the research identified that 45% of Singaporeans feel that refinancing their mortgage during their lock-in period is an unwise decision, 34% perceive that a lot of effort is involved to refinance their mortgages, while 21% brought up the need to pay thousands of dollars upfront when refinancing as a drawback.
Paul Wee, Managing Director (FinTech), PropertyGuru Group said, “These findings all point to common mortgage refinancing misconceptions amongst property owners. Contrary to conventional wisdom, there may be circumstances where refinancing during lock-in periods or incurring break costs may still make sense. We have helped homeowners attain a revised loan structure with lower monthly payments and higher savings in the long run, despite having to incur a legal fee subsidy claw back. This is achieved by tailoring a cost-benefit analysis to determine if a homeowner’s long-term savings outweigh the costs incurred to their current loan.”
Commercial banks’ interest rates have also reached historical new lows due to the pandemic, serving as a good checkpoint for homeowners to review their current financial commitments, including home loans, and ensure long-term household economic health.
“Just like going for a regular health check, it is prudent to re-evaluate your finances periodically to ensure that the mortgage is serving your needs optimally. Everyone’s situation is different, and so is each home. Singaporeans should take a strategic and holistic approach to mortgage refinancing by considering other key factors such as their current financial situation, employment outlook, personal cash flow, and even life plans,” added Paul.
On the back of this discovery, PropertyGuru Finance‘s latest “#Switch2Save” campaign in Singapore aims to shed light on the process of home loan refinancing — thereby encouraging Singaporeans to act on the benefits of refinancing their home loans, thus saving money in the long run.
Bjorn Sprengers, Chief Marketing Officer & Head of FinTech, PropertyGuru Group said, “Getting a mortgage is often associated with uncertainty and inefficiency, as well as reams of paperwork, industry jargon, and tricky fine print. PropertyGuru’s #Switch2Save campaign shares the benefits of seeking one’s home loan through PropertyGuru Finance, a trusted mortgage advisor that is free, easy to work with and provides independent, personalised services for consumers’ better long-term financial benefits.”
To extend its reach amongst consumers, the campaign will be progressively rolled out through paid, owned, and earned media channels, running from 11 January 2021 till 31 March 2021, as part of a multi-channel marketing approach.
Why Refinance with PropertyGuru Finance?
- Choose from over 140 attractive rates
PropertyGuru Finance partners with all major banks in Singapore, including DBS, OCBC, Citibank, UOB, Standard Chartered, and Maybank. This means that property owners can choose from a wide range of refinancing options to get the most competitive rates and promotions. PropertyGuru’s proprietary data is also used to regularly monitor home valuations and interest rates to help property owners optimally time moments of refinancing and enjoy the full benefit from capital gains.
- Get future-proof advice and enjoy a seamless transition of home loans
Being independent from financial institutions, PropertyGuru’s team of experienced Home Finance Advisors can offer unbiased, personalised advice, and recommend the right home loan package. They will then navigate through the home loan marketplace, track indicative property valuations, submit the home loan applications, and share regular updates about the application status with homeowners/homeseekers — absolutely free of cost.
- Smart, digital tools to simplify property finances
PropertyGuru’s technology offers a range of smart tools and features for every step of the home finance journey, from understanding loan eligibility and comparing loans to easily applying for multiple loans online. Some tools include a home affordability calculator, refinancing calculator, and a mortgage comparison tool. These services enable property owners to consume home financing services conveniently, securely, and instantly online.
#Switch2Save with PropertyGuru Finance at http://bit.ly/Switch2SavePGF today!
About PropertyGuru Group
PropertyGuru.com.sg was launched in 2007. It revolutionised the Singapore property market by taking it online and making property search transparent for everyone. For the past 13 years, PropertyGuru.com.sg has been helping property seekers in Singapore make confident property decisions. With over 5.5 million monthly visits* and 75%** consumer market share, PropertyGuru is the No.1 destination for Singapore homeseekers.
It is part of PropertyGuru Group, Southeast Asia’s leading property technology company and the preferred destination for 24.5 million property seekers to find their desired home, every month. PropertyGuru Group of companies empower property seekers with the widest option of over 2.7 million homes, in-depth insights and solutions that enable them to make confident property decisions across Singapore, Malaysia, Thailand, Indonesia, and Vietnam.
Over the decade, the group has grown from a regional property media powerhouse to a high-growth technology company with a robust portfolio of No.1 property portals across its core markets; award-winning mobile apps; best-in-class developer sales enablement platform, FastKey; mortgage marketplace PropertyGuru Finance; and a host of industry-leading property offerings including Awards, events and publications across Asia.
*Source — Google Analytics data, Jan-Jun 2020
**Source –SimilarWeb – Engagement market share, last six-month average as of July 2020