Things to take note when applying Mortgage Loan
Home loan is essential process for all most people in Singapore to be able to own a property. However, there are a lot of information that one should know when applying for an home loan. Getting a bad loan package might cause the owner to end up paying lots of interest. Thus let us share some tips on applying home loans in Singapore.
- What is a home loan?
A home loan is a loan provided by the government or banks to finance the purchase of your house. As the pricing of housing in Singapore is valuable, many may need a house loan to own a property.
- Where can I get a housing loan in Singapore?
Property owner can get their loans with banks, government (HDB) or private financing companies. However, all of these loans have a different interest scheme.
- Which is the best source I should take up my bank loan with?
You can get a lowest bank interest home loan with Mortgage Loan Advisers. They work with bankers to get a best package for their clients. Hence, offering a better interest rate for repayment. Otherwise, property owners can head to the bank and look for a home loan financing. The bankers will provide their best package for your needs.
Another way is to borrow from HDB for public houses, which the interest is higher but it offers leniency for late payments. Lastly, is to find a private financing company. Some of them provide good interest rate for repayments while some of them offer sky high interest.
- What should I look out for when applying loans?
A home owner should look out for the terms and condition of repayment. Additionally, the pattern of repayment for the interest rates. Check if there are any hidden administrative charges in a contract. Research on the reviews of the bank loans that you are apply for. There are a lot of things that 1 should take note when applying a home loan. However, you may shorten the process by engaging a Financial Loan Specialist from Singapore Home Services.
- How should I know if I am able to get the loan amount I require?
Borrowing from the banks, government or financial companies will be depending on your financing history. Hence, our advise is to keep the credit score high by paying off credit or loans on time. Ultimately, be realistic about the dream house to purchase. Buying something beyond your financial portfolio will not only hurt your credit. Sometimes it may cause a burden to the whole family.
Process of applying a home loan
- Applying a bank requires the applicant to prepare some documents for the application. The home owner will need to bring down their IC or Passport with their financial statements. Such as 3 months payslip for employees and 2 years of assessment for self employ professionals. Additionally, for private purchase you need to provide more information such as 6 month loan repayment history, your current property information and more informations depending on the bank requirements.
- Thereafter the bank or financial company will access the loan amount against the documents. Base on individual assessment, the bank will offer their package to the applicants. Which the applicant may or may not accept their offer depending on the draft terms.
Which Bank should home owners choose?
Regards to the bank that client should choose, it will be depending on individual requirement. If the home owner is looking for a reliable service, maybe he or she should look for a local bank. However, if it does not make a difference, looking for a best interest rate will be the bank to go for.
How many banks are there providing property loans?
There are lots of banks offering mortgage loans to property customer. Hence, one can engage a professional loan specialist to find out more.
So where should I start?
You can start your loan consulting plans with us via our mortgage loan page. Send in your particulars and our specialist will be in touch with you.