Clauses to Look out for when refinancing a newly TOP Property

There are a few clauses to look out for when refinancing a newly TOP Property.

1) Cancellation fee on the undisbursed amount
2) Legal Clawback ( Only Applicable for those who enjoy Legal Subsidy )

1) Cancellation Fee:
Do take note that after your project TOP , there is still  13% of your fund undisbursed until the "Expiry of the defects liability period ended. If you were to switch a bank right after the TOP , you are bound to a cancellation fee of either 0.75% or 1.5% depending on the contract you sign.

Ie:
Right after TOP
PP: $1mil
13% of $1mil is $130,000

Cancellation fee:
a) 0.75% of $130,000  = $975
b) 1.5% of $130,000   = $1,950

Banker always mention that they can give Free Conversion 3month upon TOP, but
1) Can anyone predict what will be the rate like in 2-3 years time?
2) Will the current bank be providing you a competitive rate?
3) Do you know ,if you missed the conversion 3month upon TOP, you will have to pay a fee for the conversion?


2) Legal Clawback:
Based on the older scheme , bank actually subsidize legal fee. If you were to enjoy the legal subsidy and refinance within 3 years , most bank will want you to pay back the Legal subsidy.


If you have any question unsolved, you can either get me via my Mobile at 9 1 7 6 7 9 7 0 or email me at den@housingmatters.com.sg or even drop a comment below :

Den Ng
Housing Matters
http://www.housingmatters.com.sg