Do you want to purchase a home in Singapore? Are you looking for a good mortgage loan in Singapore? If yes, you might be thinking of the various loan options available to find out the Singapore best mortgage loan. Mortgage loan helps people monetarily to buy property that they cannot afford otherwise because of a shortage of funds.
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People can borrow these mortgage loans either from banks, financial institutions or independent mortgage brokers by putting the property to be purchased as a security to the lender. The time period for which these loans are given and the amount of their repayment is decided based on the type of mortgage loan you have taken and its respective rate of interest. If the borrower fails to repay the loan amount then the lender can sell the property to get his borrowed money back.
If you want to buy a home in Singapore and looking for the best home loan in Singapore, you need not worry about it. There are several banks and other financial institutions that are in the business of lending mortgage loans. You can search for them on the internet and apply for the loan as per your requirement.
If you are an amateur in this, you can consult any mortgage consultancy in Singapore. These are the companies that offer clients impartial advisory on home loan options and also guide them about loan interest rates, mortgage rates in Singapore etc.
They have expertise in offering a wide range of mortgage solutions so that customers can experience hassle-free loan process. They have a team of professionally qualified staff that have several years of mortgage banking experience. By hiring their services, you can save your time as well as money.
Once you have taken advice from the consultancy and chosen the loan type suitable for you, now you should apply the loan application to the lender. The lender company will examine few important parameters in addition to your employment and other sources of income generation. Few aspects that are most important to take into account are borrower’s credit score, income, and down payment price. If the lender finds all the three parameters suitable, then you are eligible for the loan.
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With the whooping number of mortgage loans available in the market, choosing a right one can be a baffling job. It is very important to select a right mortgage loan appropriate for your home buying process. Though there are many different types of home loans available in the market but here in this article, we have discussed few common types of home loan packages in Singapore.
Fixed Rate Mortgage: This is a type of mortgage loan in which the time period of your home loan plan is fixed that is in between 1 to 5 years and interest rate of repaying the loan also remains fixed without any fluctuations. This type of loan offers stability to the borrower in terms of monthly installments. The borrower can repay the money back on monthly basis without any risk of interest rate variations.
Singapore Interbank Borrowing Offer Rate Mortgage: It is usually abbreviated as SIBOR i.e. a floating mortgage rate. This is a type of mortgage loan in which interest rate of repaying the loan changes with time. It offers a transparent loan option in which interbank market interest rate is available publicly and customers can check the rates anytime. The borrower can borrow this loan for the time period of 1, 3, 6, 12 months. Plus, long time period means high-interest rate.
Swap Offer Rate Mortgage: It is abbreviated as SOR. This loan type is similar to SIBOR as in both cases, the interest rate is floating i.e. keeps on changing. This interest rate in SOR is USD interest and exchange rate. It can be borrowed for 1, 3, 6, 12-months’ time period. Because of US dollar interest rate fluctuations, SOR mortgage is more unpredictable than SIBOR.
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Board Rate Mortgages: In this type of loan, the interest rate will depend on the lender bank’s policies and procedures. It is less transparent loan option since the interest rate and price depends on the bank’s policies and can vary from one bank to another.
Fixed Deposit Rate Mortgages: It is also known as FHR i.e. fixed deposit home loan rate mortgage. In this loan type, the interest rate is calculated as the average of bank’s 12 and 24 months fixed deposit rate for the fixed deposit of amount from $1000 to $9999.
Interest Only-Mortgages: In this loan type, the borrower has to pay only the interest portion for certain time period and then after some time, they have to pay the monthly installments. These loan options can be useful for some people who are not capable of repaying the installments on time. This type of loan should be applied by doing proper research and analyzing all the factors carefully. This loan seems very attractive to some borrowers who are short on funds as it lowers their monthly payments for some time.
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So, these are few common types of mortgage loans available in Singapore. Owing to the various different types of mortgage loan options available, choosing a right one can be a confusing job. The best option is to consult a mortgage consultancy. The benefits you can avail by hiring their services are endless. After analyzing your monthly income or other sources of income and loan amount required, the consultancy will give your unbiased advice on which loan to choose and apply for. You can save your time and experience stress-free mortgage loan process by hiring their services.
Equity Solution is one of the leading Mortgage Consultancies in Singapore that specializes in offering the best Housing Loan, Mortgage Loan, and Property Loan Rates. The company offers unparalleled advisory and access to all bank’s mortgage rates in Singapore. To know more, you can visit the website. Hope this article will help you in making your mortgage loan decision easy. Best of Luck.