Are you searching for a new property?

Are you looking for the best home loans in Singapore?

Are you comparing the interest rates to get the cheapest one?

Slow down. No more tension.

Everyone considers home loan as the biggest and the lengthiest financial burden in their lives. Also, most of the Singaporeans find it worth property for sale singapore to invest in a property. However, the home loans will never take a decade to pay off the amount. Here we have gathered information across 16 banks and more than 100 loan packages. This information is helpful to Singaporeans to tailor the best situation. This blog helps you to make an important decision while investing in home loans. More than this, you can consult a professional advisor to clarify your doubts. 

Let’s dive in.

First and the foremost

There are two types of home loans in Singapore. It includes HDB concessionary loan and loans from financial institutions. That is popularly known as bank loans.

Housing Board Development loans

In short HBD loans, this is suitable for buying HBD flats. Therefore, the buyer has to be a Singaporean. This is ideal for the people who look for a stable interest rate. This HBD loans are more useful the buyers who do not have much amount on hand. That is for the young generation people like new couples and youngsters. Housing Development Board loans require a little down payment of about 10 per cent compared to the other bank loans. This is 25 per cent of the purchase cost as a down payment. Further, the down payment can be paid using your ordinary account (CPF). Hence, this does not force you to have more cash in hand. There are other advantages of having a housing development board loans. This is because this allows you to be more lenient with the payments. And it does not contain penalties for repayment. Whereas, the other financial institutions charge penalties for you. 

The major component that everyone looks for is the interest rate. The HDB loan interest rate is always 0.1 per cent more than the ordinary account interest rate. In the recent years, the interest rate for HBD loan is 2.6 per cent which is stable for almost two decades. However, this is surely cheaper than other bank loans. Then, consider about the eligibility criteria for a HDB loan. The person who wants to buy should have a total family income of $12000 or less. He or she should not have owned a private property house for sale in singapore in the last 30 months. Moreover, he or she should not have taken 2 or more housing loans from housing development board. The amount you wish to buy from a HBD loan is decided by the handful of elements. The tenure of the HDB loan is 25 years and this should not be exceeded. Otherwise, the loan is available up to the age of 65 for you. They consider the shorter option.Further, the monthly payment amount should not be more than 30 per cent of the monthly income. This is called the mortgage servicing ratio. In short it is called MSR by more people.

Bank loans

Bank loans are available for all types of properties. That is for HDB flats as well as the private properties. There are a wide range of bank loans available, and you can choose according to your desire. Since taking a loan is a life time commitment, you can choose bank loans according to your financial situation. The major challenge is to choose between a fixed or a floating rate. For a fixed rate package, the interest rate is the same for throughout the period of loans. This is regardless of the market situation. After a certain period, the interest rate is converted into a floating interest rate. This is best suitable for buyers who want certainty in the lock period. This is ideal if the interest rates are low. A floating rate for home loans change from time to time. The interest rate depends on the SOR and SIBOR rate. If there is an increase in the interest rate, one will pay more for the loan. Majority of the consumers choose between 1 month, 3 months, 6 months or 12 months.

A final note

Finally, banks properties in singapore change their interest rates and housing loan packages in Singapore. SO be sure to check the latest home loans in Singapore. Many of the realtors started to help the buyers in getting a loan. One of the best realtors who help to choose the best loan for the property you buy in Singapore is maxmaran. He offers you to with the best loan packages and make your tension go away. 

Hope this information helps you to choose a property. Good luck

Thank you.