Home Mortgage: Cancellation Fee 0.75%

[Vincent_G]

It seems to be common that most bank charges 0.75% cancellation fee on the amount facility that has been cancelled (according to my banker). Is it really common term for uncompleted property here?

Correct me if I am wrong..

For example, loan 800k. If I cancel the loan after only 50% of my loan has been disbursed, the bank will charge me 0.75% x 400k. Is that correct?
After CSC (100% has been disbursed), this cancellation fee will not be applicable anymore, right? Is there any other fee if I cancel the loan after 100% has been disbursed?

If I decide to move to other bank after 100% disbursement, will the bank charge me any other fee, other than legal fee?

 

[therat]

read your bank loan letter. All the charges had stated black and white which you had sign.

Every one bank loan letter is different

 

[Fifa2006]

Hi Vincent,

normally CSC will be 1 year after Top. Once full 100% of loan is disbursed there will normally be no fee involve unless your package is still within the lock in period (which is unlikely). do read through the LO clause before you sign.

If you need any help on the package , do let me know so that I can assist you

 

[Vincent_G]

Yeah, I clarified with the bank.. It is after CSC then there is no more charges to move bank. But there is one more term I find bit strange, it only allows me to make payment only on rate review date.. Is this common term?

 

[Fifa2006]

Not all bank practise that.some bank do not have a rate review date to follow. If you were to stick with the bank with rate review date, you will have to highlight to your lawyer when you do the refinancing else some cost will be involve.

 

[Vincent_G]

Is this review date thing very strict and troublesome to handle in the future? I understand if I miss the review date, I might need to wait until 3 months for the next review date.

 

[Fifa2006]

just check with the bank when you need to
1) refinance
2) do partial payment
3) do full payment

They were be the best person to advice you