Loan Article Resource Blog


Singapore Home Loans FAQs

Posted in Loan Services by elitemoneylenders on January 30, 2012
Tags: , , , ,

Most financial experts would advise that renting a home is not a wise financial move and that purchasing a home is still more cost effective. However, in these tough financial times, purchasing a home can seem impossible. However, Singaporean home loans offer more flexibility for potential homeowners to own their own properties. For those who are looking into applying for such a loan, here are a few frequently asked questions that will be helpful in the application process.

 

What do banks or financial institutions refer to when determining my eligibility for a housing loan?

Banks and financial institutions will have their own screening process for applications for housing loans. In general, they will be checking your monthly income, your Central Provident Fund contributions and savings, current credit rating and other financial commitments and other factors such as your age, nationality and employment.

How much will be the loanable amount for a home loan in Singapore?

A borrower can usually borrow up to ninety percent of the value of the house or the purchase price, depending on which one is lower. There are also other factors to consider such as the borrower’s income and credit background.

Can I use my CPF to purchase a house?

Yes. However, there are certain criteria that should be met such as the amount of time the house in on lease as well as the borrower’s financial background. There are other guidelines that should also be considered and it would be best to refer to the CPF website.

Can the down payment for the house be included in the home loan as well?

Unfortunately, no. The down payment should be paid in cash separately. However, one may try to venture other options such as borrowing money from personal loans or credit cards.

How much is the minimum down payment when purchasing a house?

The minimum down payment is twenty percent of the purchase price. If one is using his CPF savings, he can use it to pay fifteen percent of the down payment but the other five percent should be paid in cash.

Are there miscellaneous fees that I should prepare for?

There are other fees that one should prepare for before purchasing a home. Depending on the bank or financial institutions, miscellaneous fees may include the processing fees, stamp duty and legal fees.

 

These are just some basic information that would be helpful in applying for home loans. It is best to do ample research on banks and other financial institutions in order to get the best deal possible that is most suitable to you and your current finances.

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