| Q1: | What are the ways available to me to finance a property purchase? | ||||||||||||
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There are several ways for you to finance your purchases. Basically, you can either use your CPF and or loan from commercial banks/finance companies. Often, a combination of different types of loans and savings from your CPF is used. The important thing to know when buying properties for the first time is that banks and finance companies can only loan you up to 80% of the purchase price or the valuation of the property, which ever is lower. |
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| Q2: | If I am a foreigner, am I eligible for a Singapore dollar housing loan? | ||||||||||||
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Unless you are a Permanent Resident, you are entitled to one Singapore dollar housing loan. |
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| Q3: | How do I know how much I should loan for purchasing a property? | ||||||||||||
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You can find out by doing a simple calculation based on the purchase price of the property and your income from our on-line calculator. (click here to go to on-line calculator) |
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| Q4: | Besides my housing loan, is there any other loan I can use to help me pay for the down payment of a property? | ||||||||||||
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Yes, you may use a bridging loan, which is a short-term loan designed to tide the borrower over a period when he needs cash. However, because bridging loans are usually available for those taking up a housing loan from the same bank. Some people also use this type of loan while waiting for the release of his CPF funds. |
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| Q5: | How is the bridging loan interest calculated? | ||||||||||||
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It is calculated on a day to day basis and is payable every month. |
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| Q6: | When do I have to repay the entire bridging loan? | ||||||||||||
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You have to do so upon completing the transaction of purchasing the property (usually 3 months), subject to a maximum of 6 months. |
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| Q7: | What are the charges involved in taking a loan from the bank? | ||||||||||||
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Each Bank has its own set of charges, but generally the following applies:
Others: Some banks also charge for making changes to the original loan application or for canceling a loan offer after you have accepted it. |
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| Q8: | What are the documents I need to have to produce to the bank when applying for a housing loan? | ||||||||||||
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Most financial institutions require the following items:
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| Q9: | What are the main factors that my bank will consider when deciding whether to help me finance a property purchase? | ||||||||||||
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Since the main concern for banks would be whether the borrower would have money coming in the future date to repay a loan, your bank will usually examine the current market value of the property (if any); your income; your employment history; your assets and liabilities; the total equity which you are committing to the property, and your age. |
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| Q10: | What type of loan should I apply to rebuild my bungalow? | ||||||||||||
| You can apply for a reconstruction loan. | |||||||||||||
| Q11: | Why can't I use an overdraft to facilitate my loan to rebuild my bungalow? | ||||||||||||
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You can use an overdraft to rebuild your property, but a reconstruction loan has a lower interest rate, and you only need to pay for the interest rates on the amount you have used. |
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| Q12: | When may I redeem my mortgage? | ||||||||||||
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It may be redeemed any time, however, but you may have to pay a fee for early redemption. The fee is known as the pre-payment penalty, and is based on the mortgage loan amount or outstanding amount. |
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| Q15: | I had defaulted on the mortgage loan for my property, and the Bank has sold my property for a very low price, can I sue the Bank? |
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Unless you can prove that the Bank has acted carelessly or recklessly in selling your property at a much lower price that what the market is willing to pay, the Court will not interfere. |
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| Q16: | Am I entitled to any money after the Bank sells my house? |
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Yes, provided that there is any left after the Bank recovers the money lent to you, including all other expenses in selling your house. |
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| Q17: | What can I do if the bank's lawyers delayed their preparation of a mortgage which resulted to my liability to pay interest to the Seller? |
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Unfortunately you will not have any course of action against the bank since the bank does not bind itself to you to provide the loan before the completion date. The bank's lawyers also do not represent you, therefore you will also have no recourse against them. |
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| Q18: | Should I refinance my property with another bank with a much lower interest rates? |
| It all depends. This is because you must take into account the pre-payment penalties involved in redeeming your mortgage earlier than the maturity date. Therefore, you have to compare the monthly installments offered by each bank and include the penalties for terminating the original loan. Also, it would be not be sensible to refinance at the end of a loan period since the interest gain in the new bank would be minimal. To find out more about the conditions and penalty fee for each bank, click here to our on-line refinancing facility. | |
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