BANK HOUSING LOANS IN SINGAPORE
Buying a property in Singapore is a big-ticket purchase, signifying a coming of age for many Singaporeans. Whether the property is for personal lodging or investment purposes, every move and decision must be considered with caution, including which bank loan to take up for your new house.
GETTING A BANK LOAN FOR YOUR HOME IN SINGAPORE
Compared to HDB loans, bank housing loans in Singapore typically have significantly fewer restrictions. In order to get a bank loan for your house, most banks in Singapore necessitate borrowers to clear a credit check. This is usually the only condition most banks have prior to lending.
Furthermore, banks hold a fluctuating interest rate for housing loans, depending on the current SIBOR/SOR rates. While not guaranteed, a bank loan may potentially be better than the HDB loan interest rate of 2.6%. As of now, the current interest rate for bank loans sits at 1.2% to 1.5%, almost half of the latter’s interest rate. However, interest rates for bank loans for houses are expected to increase within the next three years.
ARE YOU ELIGIBLE FOR A BANK HOUSING LOAN?
Looking to get a bank loan for your new home? Fret not as our mortgage consultants can perform bank loan calculations based on your income, age and new property purchase price. This way, you will be able to find out if you are eligible for a housing bank loan based on the Mortgage Servicing Ratio (MSR) across all major banks in Singapore and the maximum loan amount that you are able to get.
FREQUENTLY ASKED QUESTIONS ABOUT BANK LOAN FOR HOUSES
Bank housing loans will only loan you up to 75% of the price of your property, if it is a HDB. In some cases, banks can loan you up to 90% of your property price.
You can choose to refinance your housing loan to another bank if you are able to get a loan from another bank with a lower interest rate, and we can help you with it.
Taking up a bank loan instead of an HDB loan for your flat will require you to pay 5% of the down payment for your property in cash, with the remaining 20% of the down payment being a choice between CPF or cash.