You find yourself thinking of your dream home every time you see the vacant piece of land in the village where you are currently residing. There you could visualize the kind of home you've wanted to have, but then reality immediately sets in and all you can see is the empty piece of land which you are not even sure you can afford. Should you give up your dream home then? No, you shouldn't because you can apply for a loan to help you build your dream home.
Loans are meant for people who are experiencing an unforeseen financial problem, those who have plans like establishing a business, or those people like you who want to borrow money to build their dream home.
So if you're looking for a housing loan in Singapore, you must learn about the essentials of applying for this type of loan. Most often, banks and other financial institutions grant this kind of loan applications for the purchase of a private residential property.
The interest rates for housing loans differ in terms of the borrower's intentions in applying for this type of loan. Some borrow money through this kind of loan to finance the purchase of a property that they can occupy, while others borrow money and buy a residential property which they can use for earning additional income. There is also a difference in interest rates when it comes to properties that are bought fully completed and those that are under construction.
In Singapore the interest rates for owner-occupation properties (under construction) can start at 2.50 percent and increase up to 5.50 percent in 6 years and beyond. For completed properties, the interest rates in the first year can start at 3 percent and reach up to 5.50 in the sixth year and beyond. For investment properties, the interest rates can start at 3.75 percent and increase by 1.75 percent in the sixth year and beyond. The maximum repayment period for this type of loan is 35 years.
You have to be a natural born citizen or a permanent resident whose age is 21 and above in order to for you to qualify for this type of loan. Other documents you need to prepare when applying for a housing loan include (payslip, IR8A, etc.),current CPF statement of account, and an account with the lending bank for debiting monthly repayments. The first two requirements are also usually required when applying for other types of Personal Loan, such as a payday loan.
Loans are meant for people who are experiencing an unforeseen financial problem, those who have plans like establishing a business, or those people like you who want to borrow money to build their dream home.
So if you're looking for a housing loan in Singapore, you must learn about the essentials of applying for this type of loan. Most often, banks and other financial institutions grant this kind of loan applications for the purchase of a private residential property.
The interest rates for housing loans differ in terms of the borrower's intentions in applying for this type of loan. Some borrow money through this kind of loan to finance the purchase of a property that they can occupy, while others borrow money and buy a residential property which they can use for earning additional income. There is also a difference in interest rates when it comes to properties that are bought fully completed and those that are under construction.
In Singapore the interest rates for owner-occupation properties (under construction) can start at 2.50 percent and increase up to 5.50 percent in 6 years and beyond. For completed properties, the interest rates in the first year can start at 3 percent and reach up to 5.50 in the sixth year and beyond. For investment properties, the interest rates can start at 3.75 percent and increase by 1.75 percent in the sixth year and beyond. The maximum repayment period for this type of loan is 35 years.
You have to be a natural born citizen or a permanent resident whose age is 21 and above in order to for you to qualify for this type of loan. Other documents you need to prepare when applying for a housing loan include (payslip, IR8A, etc.),current CPF statement of account, and an account with the lending bank for debiting monthly repayments. The first two requirements are also usually required when applying for other types of Personal Loan, such as a payday loan.
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