What It Means
Refinancing means replacing an existing mortgage with a new one — either with the same lender or a different one — usually for better terms or to release equity.
Why It Matters
Borrowers refinance to seek a lower rate, adjust the tenure, consolidate the facility or access equity. The benefits must be weighed against costs — valuation, early settlement, registration and processing fees — and criteria vary by lender.
Simple Example
A borrower three years into a mortgage compares refinancing routes and checks whether the overall savings exceed the switching costs before deciding.
Related Terms
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