What is Hire Purchase?
You want to buy something but you don’t have the money. For certain items, you might just want to consider Hire Purchase. Hire Purchase, in a nutshell, means hiring goods with the option to purchase it. You are the hirer and the financial institution is the owner. Upon full payment of the installments payable, ownership is transferred to you. Meanwhile, you get the benefit of possessing and using the goods.
Common items or goods which may be available under Hire Purchase schemes include:-
- Motor vehicles - eg. cars, motorcycles, buses, taxis, etc;
- Industrial heavy vehicles - eg. forklift, tractors, bulldozers, cranes, etc;
- Electrical consumer goods - eg. washing machines, vacuum cleaners, refridgerators, etc;
- Commercial equipment - eg. baking ovens, commercial freezers, printing machines, etc;
- Computer equipment - eg. desktop computers, notebooks, etc.
But why Hire Purchase? The first reason is of course, it is a means to enable you to possess and use items which you would not be able to afford to purchase outright. Using a Hire Purchase facility enables you to improve your lifestyle and / or standard of living. Read more
When You Should Reconsider Refinancing Your Mortgage?
Let’s face it. Not everyone is born with a silver spoon and many people need to take up a mortgage in order to purchase their house or apartment. Mortgages can be as long as 30 years or up to age 65 depending on where you live but it is a fact that a huge chunk of one’s salary goes towards mortgage repayments. Whilst having a mortgage is quite common and most of us live with it and dutifully pay our instalments, there are some people who might face certain financial difficulties during the mortgage period in which event, they might want to consider refinancing. Well, even if you are comfortably paying your mortgage, you might want to consider refinancing in the following circumstances.
When the current refinancing package offers a better deal than your current mortgage
Financial institutions are always trying to outdo one another with innovative mortgage products by promising better deals to their customers. At today’s standards, calculation of interests based on daily basis is the norm whereas a couple of years back, monthly basis was the norm. Daily basis calculation is usually more beneficial to the customer as any prepayment may immediately reduce the amount of principal and calculation of interest daily compared to a once a month occurence in the monthly basis calculation. Read more