Readers who pay attention to the opening of the property market believe that they have noticed that property prices will continue to decline in 2023. In 2022, property prices fell by 15%; from 2023 to November, property prices continued to fall by 5.6%, and the downward trend in property prices broke the 2003 The record for the longest SARS epidemic in 2020 has been rising. While the market continues to bottom out, rents have continued to rise. According to November data, rents are expected to rise to nearly 8% in 2023, a sharp trend; another trend that goes against the trend of the market is rising. This situation occurs during remortgage registration.
According to Centaline data, in the first 11 months of 2023, a total of 14,711 bank remortgage registrations were recorded. Although the number is 30% less than the same period in 2022, the number of remortgages has actually increased for many consecutive months in the past seven months. , which is a new high in the past year. The time when most people will remortgage in 2023 will be the beginning of the second quarter, because the government relaxed mortgages in July, and the bank's cash rebates were still quite high at that time. However, in September, the temporary craze for remortgage quickly cooled down due to banks raising interest rates and reducing cash rebates.
4 common reasons for remortgaging
Common reasons for remortgage (1): Switching away from "Breath Plan". In the past, there were usually only a few reasons for remortgage, one of which was closely related to new building owners, which was switching from a "breathing plan" to a bank. In the past few years, many buyers of new buildings, perhaps due to their financial situation or wanting to use up the developer's discounts, would choose to apply for a mortgage plan provided by the developer, and wait until the honeymoon period is over before transferring to a bank, so they do not need to continue to pay the "low" High interest rates after the "private honeymoon period".
Common reasons for remortgage (2): Return of mortgage insurance premiums. For buyers who originally used a high-percentage mortgage, remortgage has another use, that is, it can be used to get rid of mortgage insurance and get back part of the mortgage insurance cost. For example, if a buyer surrenders the policy in the first year of buying a property, he or she can get a refund of 40% in premium; if he surrenders the policy in the second year, he can get back 25% in premium; if he surrenders the policy in the third year, he can get back 15% in premium, which will help the buyer get back his funds. Common reasons for remortgage (3): Cashing out assets. Another main motivation for remortgage is to cash out. In the past, the property market has continued to appreciate. Owners can use remortgage to cash out without selling the property and use their cash flexibly. With the recent decline in the property market, bank valuations have also continued to decline. Some owners who bought properties earlier in the year want to cash out first while taking advantage of the "good price" and will choose to remortgage.
Common reasons for remortgage (4): Switch to a bank with lower interest rates. In addition to new home buyers abandoning the "breathing plan" and needing to remortgage, the United States has the opportunity to start cutting interest rates in 2024. The author believes that this will help drive an increase in the number of remortgages. After all, in 2023, as banks continue to raise interest rates, many property owners will significantly increase their mortgage expenses due to the impact of high interest rates; and after the interest rate cuts begin, I believe banks will gradually launch preferential remortgage plans to attract mortgage users from other banks. Remortgage. Homeowners who entered the market during the period of high interest rates can also take advantage of remortgage and transfer to banks with lower interest rates to underwrite mortgages to reduce their monthly mortgage payment burden. For buyers who are unfamiliar with mortgages, when choosing a remortgage plan, in addition to comparing the mortgage plans provided by banks to which one has the lower interest rate, you can also find a reputable mortgage referral company to help process the application. If the application is successful, Get extra rewards.
Especially after banks have lowered their cash rebate rates, if you want to get more discounts, you have to apply for a mortgage through a mortgage referral company.
(Picture source: Data picture)