There are times when a person is in need of extra money for, say, buying a car, repairing his house or paying off his education fees. At such times, he can choose to opt for home equity loans. A home equity loan is a kind of loan wherein a person can borrow money from a bank or financial institution by pledging the value of his house as collateral security. He can then use this loan for any personal or business purposes. Home equity loans come under the category of secured loans.
You can take a home equity loan for any personal or business purpose in Singapore, but there are other reasons as well, which make this loan very attractive compared to others. One of them is that it is very easy to get these loans. To take this loan, one has to keep their house as collateral security, which makes it comparatively simple to get it. Another reason is the low rates of interest. These loans are given to people with a very good credit history, thus the rate of interest on the loan is less. You can choose to opt for this loan as it will allow you to invest in other places. This investment will earn you returns and if done wisely, will get you more money than the interest you pay on the loan . It is also a very good idea to take a home equity loan for increasing funds for your own business.
There are many banks in Singapore which provide Home equity loans. Some of them are
Yes, you can use the money you get from the loan for any personal use as long as you repay it on time.
To get a home equity loan from HSBC Bank, please visit the nearest branch of the bank or contact them.
Yes, most banks require you to have a good credit history or they will not approve the home equity loan. There are some banks which give you this loan with a bad credit but with a high rate of interest.
If you are unable to pay back your loan, the bank or the financial institution will take over your house.
Banks look at different parameters before approving the home equity loan amount. They do not give the full amount, but provide up to 70% or 80% of the value of the property given as a collateral. Not all banks give 70% to 80% and in case you are taking this loan to buy another property in Singapore, then the maximum amount given by the bank will be 60% of the value of the house.