Mortgage reduction service helps loan borrowers save thousands of dollar in mortgage interest by making partial prepayments with a detailed Mortgage Reduction Plan (MRP). The MRP contains amortisation schedules illustrating how partial prepayment rescheduled by a lump sum prepayment or monthly prepayment.
When a loan borrower decides to engage with the service, her/she will appoint a mortgage reduction consultant by authorising the consultant to liaise with his/her mortgage lender on behalf of him/her on the execution of MRP.
All bank allows loan borrower to make prepayments, why I do need to engage a consultant?
You are absolutely right. All housing loan agreement allows loan borrower to make prepayments. However, most of the loan borrowers are misled by the mortgage lender when it comes to making repayments (please refer to Types of Repayments for details). You do not need a mortgage reduction consultant if you are absolutely sure how to prepay correctly (please refer to Mortgage Reduction DIY Checklist).
When a loan borrower decides to engage with the service, her/she will appoint a mortgage reduction consultant by authorising the consultant to liaise with his/her mortgage lender on behalf of him/her on the execution of MRP.
All bank allows loan borrower to make prepayments, why I do need to engage a consultant?
You are absolutely right. All housing loan agreement allows loan borrower to make prepayments. However, most of the loan borrowers are misled by the mortgage lender when it comes to making repayments (please refer to Types of Repayments for details). You do not need a mortgage reduction consultant if you are absolutely sure how to prepay correctly (please refer to Mortgage Reduction DIY Checklist).
How long does a mortgage reduction service take to complete?
Depending on the prepayment notice, it normally takes 3 (for 1-month prepayment notice) to 6 months (for 3-month prepayment notice) to complete. The entire process flow includes collection of copies all relevant documents (Letter Offer, account statements, loan agreement, and other correspondence from the financial institution and developer), preparation of MRP, revision of MRP (if any), submission to the financial institution, and reminders for MRP execution (if required).
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