The COVID-19 pandemic has caused a severe disruption to global economic activity and these difficult times could very well continue into late 2020 and beyond. Hence, we should prepare ourselves financially for the recession, now more than ever.
One silver lining amidst this pandemic, is the fall in interest rates. While it's not great news for our bank saving accounts, it comes in pretty handy for anyone who is looking into getting a new home loan or refinancing their house.
Head over to our web/app and give our Home Loan Calculator a whirl!
Let us to do an assessment report for you and find out how much you can potentially save after 5 years, should you choose to refinance your home loan.
Based on the image above, you can see that different bank packages will yield you different savings. Assuming you chose the one that gives you the highest savings of $21,878.25, at the end of 5 years, you may choose to re-invest this money via other financial instruments since it is not wise to leave it in the bank given the current low interest rates.
Our suggestion is to use our Investment Illustrator to explore the effect of different investments on your current financial portfolio. This tool can help you to estimate projected values and expected returns to improve the diversification of your portfolios and move closer to your goals.
As seen in the snapshot, if you choose to invest the $20,000 you had saved from refinancing, in an investment that can yield you 6% interest rate, you could eventually get back $102,581 by the time you are 64 years old, due to the effects of compounding interest!
We understand that amidst such volatile climate, making any major financial decisions can prove daunting. This is why, we aim to bring together multiple parties of interest with integrity and commitment, to help you make the most informed choice by ensuring smooth processes via virtual meetings and our trusted platforms.
Feel free to drop us an email or use the tool available on our website, to help you come to the most cost effective decision.