qUESTIONS FOR A NEW PRIVATE PROPERTY HOME LOAN
The maximum loan to value (LTV) for your first private property in Singapore is 75% and the corresponding maximum tenure is 30 years. If you wish to extend your tenure up to the regulatory limit of 35 years, your LTV will then decrease to 55%.
The amount of CPF that can be used as the initial down payment will depend on the loan amount you qualify for. Assuming you qualify for the maximum loan amount of 75% of your purchase price and taking into account the mandatory 5% cash down payment required, the balance 20% can then be made with your CPF funds in your Ordinary Account (OA).
A bank provided property valuation determines the maximum housing loan amount for both a refinancing and new property purchase. While looking at recent resale transactions through publicly available sources can provide an indication, a bank indicated property valuation is the most accurate.
Our partner conveyancing law firms provide discounted fees which include CPF fees, mortgage stamping, stamp fees and GST. Usual legal fees range from $2,00 to $2,300 for a new private property purchase.
The short answer to this is a Yes. But it will require having significant cash savings to be locked in with a specific bank for a period of 48 months. For calculating the amount of savings needed, a simple breakdown is as follows, say you are looking to get a home loan of around $800,000. The monthly installment applicable at an interest rate of 3.50% over a tenure of 30 years is around $3,600.The applicable savings amount to be pledged to the bank in order to meet TDSR requirements is then approximately $300,000. Do note that the savings will be locked in with the bank once your mortgage has been approved and cannot be withdrawn for a period of 4 years or used towards the downpayment of the property you are intending to purchase. Also, only certain banks and not all can grant a home loan using this method.