Most people around the world have at least one dream in common, the dream of owning their own house. In Singapore, buying a home is one of the biggest investment for a person which has to be planned carefully. Thanks to home loans provided by financial institutions, it is easy for people to fulfil their dream of living in their own house.
A mortgage loan or a home loan is a secured loan and is used by people to buy a property (real estate or house). The person taking the loan has to give the property they are buying as collateral security. In this case, if he fails to repay his loans, the lender can take over his security and sell it to get back the money.
Mortgage loans provide low rates of interest and help you in increasing your credit score. When you take this loan, you do not have to repay the entire amount at once and have the option of paying it off in monthly installments, also known as EMIs. But the most important reason for choosing this loan is that mortgage loans can help you get your dream house.
A house is one of the most expensive assets in Singapore and to buy it, you need a lot of money. Most people do not have the required money with them and they choose to take a home loan or a mortgage loan from banks or financial institution. Both individuals and businesses can take mortgage loans to purchase real estate.
The different types of mortgage loans are as follows -
A mortgage loan has many features and benefits. Some of them are -
Apart from the one’s mentioned above, there are other features and benefits as well, such as prepayment, down payment, etc. The major benefit that a person gets from this loan is a chance to live in a house which belongs to him.
The features and benefits differ from bank to bank and a person should contact the banks which provide this loan in Singapore for more details.
The eligibility criteria depend on the banks providing the mortgage loan. Banks decide who is eligible for the loan and who is not depending on many factors. Some of them are -
The Total Debt Servicing Ratio (TDSR) and Loan-to-Value Ratio (LTV) play an important role in deciding if you should get the loan or not. To get more information on eligibility, contact the bank you are planning to take the loan from.
Apart from these there are other documents which banks may ask you depending on their eligibility requirements. To find out more on the same, please contact the lender.
There are many banks that provide mortgage loans in Singapore. Some among these banks are as follows -
There are times when a person may end up borrowing more money on loan than he can afford. A mortgage loan calculator saves a person from borrowing this extra amount. Besides telling a person about the amount he should take as a loan, the calculator helps him in figuring out how much money he has to pay in monthly instalments. This information aids him in planning his finances and preparing for the future.
The mortgage loan calculator can be accessed online and is easy to use. A person has to enter in certain details such as the amount of loan, tenure, down payment and rate of interest. After filling in the information asked by the EMI calculator, he has to click on calculate and in no time he will get a detailed result. This result will include the EMI, amortisation table and balance loan and the amount of interest due each month.
The difference between mortgage amortization and term is that amortization is the time you will take to repay the full loan and term is the period of time for which your rate of interest and mortgage agreement will be effective. The term is a part of the amortization.
If you fail to pay your mortgage loan on time, the bank which provided you the loan will take over your collateral security.
Yes, you can pre-pay your mortgage loan, but some banks may charge penalty for doing so. It depends on the bank if they will charge this penalty or not.
Yes, there are extra charges such as late payment charges, application charges, and charge for changing loan period, etc. You should ask for details on the same from the bank which is providing you the loan.
The eligibility criteria is different for every bank. You should find out information on the same from the bank which is lending you the money.
The HSBC mortgage loan is available for maximum 35 years in case of private properties and it is 30 years in case of HDB flats. The period of loan also depends on the age of the borrower.