Let’s face it, people are always impulsive to make a decision when purchasing their first property in Singapore. Nothing beats the sense of security by investing into buying your own property. Due to the expensive price tag of houses in Singapore, getting a mortgage loan is an important choice. This is because 1 wrong move can easily cost a big damage to your financial plans. Hence, here are a few tips which you can apply when getting a best mortgage loan package.
1. Get a Mortgage Loan Adviser to assist your financing portfolio.
Getting a mortgage loan adviser can help you save so much time and money. Furthermore, these gurus will be more aware of the current trends and traps when apply the loan for you. Usually, applying the loan through a mortgage loan adviser is hassle-less and updates of a better package will be provided in the future.
2. Compare the rates between banks before making your decision.
Yes, we know that getting your ideal living space is important as the perfect property is very hard to find. However, making an impulse choice when applying home loans is more destructive in the long run. Thus, when comparing property loan packages it is crucial to have more than 2 to 3 banks. Just in case, you can assure the individual bank package is not overcharging you on interest.
3. Should you get a loan with lock-in clause?
Lock-in clause will be subjected to a penalty payment if you decided not to continue the loan package. Most of the time, lock-in mortgage loans last about 2 to 3 years which seems stressful because of the penalty. However, house owners might get better rates on interest during the locked-in period. The bottom line is to only sign on the application when the package is most beneficial to you regardless of lock-in clause.
4. No record means good record?
A lot of people have a wrong impression that not taking up loan is good for your credit score. In fact, having a good record of credit payment is better than having no records. Furthermore, no records of loan will leave the banks to be unable to judge on your loan payment. Therefore resulting to a possibility of getting a lower amount from the application.
5. Take the longest period to pay off the loan.
Unlike HDB loans which home owners get the flexibility to pay off the loans without a prepayment penalty. A mortgage loan with banks will incur a prepayment fees if you choose to pay off your debt before it’s due. Thus, we will recommend our client to sit down and discuss before making a decision on the loan time frame.
6. Not refinancing after the 3rd year as it is troublesome.
Mortgage loans interest are low usually for the first 3 years, thereafter it will increase on the forth year onward. May home owners feel troublesome to get into refinancing the loan as they thought that their serving interest is the same. In fact, that is where lots of our client get to learn that they can save when refinancing. A good mortgage loan consultant will always keep their clients in mind for the best package avail when refinancing chances arise.
7. Engaging a law firm without making some research.
A lawyer fee is never cheap but a loan application will require a lawyer to prepare the documentation. However, this is the part where many of the home owners overlook and just use the law firm which the advisers suggest. You may get lucky if you meet our consultants at Singapore Home Services but in some unlucky cases home owners get charge a whopping $2000 – $3000 just to get the documentation. Additionally, do take note that some banks only recognize one law firm for the documentation. This may increase your cost and lessen the savings compared to those who offer better rates for the documentation.
8. Freebies offered by banks.
Some freebies which are offered by the banks can be clawed back if the home owner decides to cancel their loans. Hence, it is important that your mortgage consultant advises you on what to avoid as greed can be dangerous.