Get a home equity loan with cash out refinancing
Maximise your home equity loan in Singapore by securing the highest property valuation from across 18 Banks. Our mortgage consultants also provide strategies on cash out refinancing and advice on the best bank for an application.
Common Questions for a Home Equity loan
Legal fees ranging from $1,800 to $2,000 nett as well as valuation fees depending on the market value of the property are applicable for a equity home loan.
No. All home equity loan instalments cannot be paid via CPF and only cash is allowed.
Yes of course. A existing home equity loan can be refinanced to enjoy a lower interest rate package. Cash rewards and rebates are also offered by all banks for an existing home equity loan refinancing.
A home equity loan and cashout refinancing are theoretically taking out paid up equity from your property as lump sum and servicing the monthly installments with a specific bank. You can take a equity loan from your fully paid up private property from any bank in Singapore or refinance your existing property and apply for an additional equity loan with your existing bank or a different bank altogether. Home equity loans function the same way as any other home loan where the monthly installments are paid in a proportion of interest and principal. While interest only home equity loans used to be available previously, there are no longer allowed by major banks in Singapore.
There are a few factors involved in calculating a home equity loan amount but the most crucial determinant is the market value of the property. Having a high market value of your property allows for the maximum equity to be taken out. For example, your current property has a market value of $2,000,000, an outstanding loan amount of $800,000 and CPF usage to date by all owners of $200,000. The corresponding equity loan amount is then 75% (maximum financing quantum allowed in Singapore) of the market value (0.75 x 2mil = 1.5mil) subtracted by the outstanding loan amount and CPF usage (1.5mil - 800k - 200k = 500k). Therefore, the maximum equity loan that can be taken is up to $500,000. Do note that equity loans are also subjected to TDSR requirements as well as income and debt obligations. Having a high market value of your property even though important, is not sufficient for a bank to grant a equity loan.
No you can't, it also does not matter if your HDB is fully paid up or not. Equity loans are only allowed for private properties.