Home Loan in Singapore (2020)
Apply For Your Home Loan Singapore Today
From young couples who are purchasing their first home, to property owners who want to refinance their property and even the refinancing of a renovation loan, these days there are products that will allow borrowers to:
- Purchase property for a low, or almost no down payment
- Construct a home
- Cash-out loan from the equity of a property
- Buy a commercial property with no upfront fees
- Refinance a property to save money
- Renovate a commercial space at very low cost
Choosing a home to purchase is undoubtedly one of the most important decisions in life, especially if it is your first home. In spite of the many horror stories about getting a home loan in Singapore, the truth is that, obtaining a mortgage loan should not be too difficult. At Capable Loans, we will help you to get the best possible deals.
As such, Capable Loans will always be dedicated to helping you find the best possible home loans with the most effective financial institution. Whether it is a commercial space for a new office set up, a retail space for your new shop or your first property, it is essential that you are made aware of all the available deals.
What if you already have a home loan?
Capable Loans can also help you to refinance your mortgage, or even to obtain a cash-out term loan based on the value of the property.
How To Prepare For A Home Loan Application?
The moment you have decided to get a home loan, you should always make the effort to compare all home loan rates and conditions. When it comes to home loans, we feel that all lenders should always provide all relevant information. The things that you should be looking at are the interest rates, the tenure of the loan, bank processing fees, the conditions of the loan, early repayment penalty and the property insurance.
It is imperative that you gather all the information about the home loans in Singapore at one shot. The reason that it is important, is that mortgage interest rates can be very volatile and changes happen fast. Mortgage rates are very reactive to the volatility of bond prices and the mortgage-backed securities, which can basically be as fast moving as stocks.
Even global economic news that we may not have knowledge of, can cause mortgage rates to rise and fall very rapidly, similar to the stock market. This effectively means that the rates you saw on Wednesday, may not be the same rates on Friday. Capable Loans is a place where you will be able to get all the updated news, ever changing interest rates and the best deals in Singapore.
How To Qualify For Home Loan?
Here we identify a few of the 3 common requirements that the banks focus on when it comes to a property loan:
1. Credit Score Rating
Basic checks are carried out on your background and credit history. Lenders basically want to know that you do not have a bad repayment record and that you do not have unreasonable amounts of outstanding debt.
If you already happen to be servicing other debts, it can affect your total debt servicing ratio (TDSR), which means that the total amount you can borrow for home loans may be a little less.
2. Total Household Income
Due to the fact that a property loan in itself comes fully collateralized, lenders are able to take into account the overall income of a household these days, as opposed to stricter requirements that used to only take into account the income of the owner.
3. Personal Cash Savings
A highly sensitive but necessary criteria that lenders often overlook. An assessment is done on the personal cash savings of a property loan applicant to ensure that the committed monthly installments are of a comfortable amount, and that the borrower is not being financially over-stretched.
How much can I afford?
Before deciding on which property loan product to take up, it is imperative that you consider your monthly income, the down payment amount, and all existing monthly debt repayments into your calculations.
Unless the numbers make sense, you will not be able to decide properly. The home loan amount should be a number that you are comfortable with paying back.
What is my credit score rating?
For all Singaporeans and Permanent Resident (PR) holders, you can check and keep track of your credit ratings by purchasing your latest credit bureau search report from the national credit bureau search portal.
Knowing your credit bureau rating will help to accelerate the loan application process. In the event of unfavorable credit ratings, at least you will know what went wrong and can work towards fixing the issue at hand.
How much is the down payment amount?
In Singapore, average down payment amounts are usually 20% of the property price. However, you should know that the down payments can also come from a bank loan, while a large chunk of it can also be paid via your CPF accounts.