• Home Loan BYTES FROM OUR KITCHEN

    POSB Home Loan Singapore

    Purchasing a house or residential property is a major decision in anyone’s life. This is due to the reason that not only is property a lifetime investment but also, it requires substantial amounts of money to purchase. Any house or property purchased can be passed on from generation to generation and will only accumulate value over time. Which is why infrastructure is still considered one of the most secure forms of investment. However, as property rates will only go up in the future, it is not always possible to purchase property solely with your savings. Be it your first house or your next house, it isn’t always easy getting the right financial aid.

    The time has come, to put an end to your search for home loans with the POSB HDB Loan. One of the most popular home loans offered by the POSB Bank, this loan features some excellent terms with regards to affordable interest rates, multiple interest rate packages to suit different budgets, flexible term periods, a hassle free process of application, higher savings and many such benefits.


    You’re probably eligible for an POSB Bank Home Loan if you are

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    POSB Bank Home Loan Minimum Age

    No Info

     POSB Bank Home Loan Maximum Age

    No Info

    POSB Bank Home Loan Eligible Employment Type

    Salaried / Self-employed
    with regular income

    POSB Bank Home Loan Minimum Income

    Earn more than the minimum
    income required


    Your POSB Bank Home Loan amount eligibility is based on these factors

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    02
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    POSB Bank Home Loan Minimum Salary

    EMI limited to about 50%
    of monthly income

    POSB Bank Home Loan Maximum Loan to property value

    No Info

    POSB Bank Home Loan EMI

    EMIs of other loans lower
    your eligibility


    Increase your eligible POSB Bank Home Loan amount by these steps

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    02
    03
    POSB Bank Home Loan Add Spouse as Co-applicant

    Make your spouse a co-applicant,
    and her income will add
    to your eligibility

    POSB Bank Home Loan Maximum Tenure

    Choose longer tenure loan

    POSB Bank Home Loan Add parents as Co-applicant

    Alternatively add your parents


    Documentation needed to apply for an POSB Bank Home Loan

    • 1. Copy of NRIC/Passport of all Applicants & Owners
    • 2. Latest Computerised Payslip (salaried)
    • 3. CPF Statement – Latest 12 Months Contribution History (salaried)
    • 4. 2 Years Income Tax Assessment (self-employed)
    • 5. Option to Purchase or Sale & Purchase Agreement (for new purchase)
    • 6. Tenancy Agreements (if any)
    • 7. Evidence of sale of existing property (if applicable)

    POSB Bank Home Loan DetailsUpdated on 21 Nov 2017

    POSB Bank Home Loan Details
    Interest Rate 2.5%
    Margin of Finance No Info

    Founded originally in 1877, the Post Office Savings Bank (also known as POSB Bank or POSB), is an offshoot of the DBS Bank, Singapore primarily concerned with consumer banking services. Singapore. POSB was acquired by the DBS Bank in 1998 and since then has focused on providing low cost banking services to its customers. With the highest number of branches in suburban neighborhoods and ATMs located throughout Singapore, POSB offers a wide spectrum of products and services like deposit accounts, loans, mortgages and cards.

    Why Choose POSB Home Loan

    Protect yourself from inflations in interest rates and enjoy higher savings with the POSB HDB Home Loan. One of the notable features of this loan is that it offers loan rates much lower than the HDB Concessionary loan rates, for the first 8 years of the loan tenure. Additionally, this loan is also very stable when it comes to prepayments and does not charge any fee on prepayment of loan. Also, with the DBS Home Loan calculator, it is easy to calculate the loan amount you have to pay each month, so you can budget your expenses accordingly.

    POSB is one of the first banks in Singapore, and was acquired by DBS in 1998. The bank is known for its affordable interest pricing and the wide range of products it offers. Home loans are among the various loan products offered by the bank. Let’s look at the important features, benefits and other details such as interest rates, how to apply for the loan and frequently posed questions on the bank’s home loan product.

    Types of Home Loans offered by POSB

    POSB Private Property Loan

    The Private Property Loan offered by POSB allows you to purchase a private property at a combination of interest rate packages. You are also given the opportunity to choose a tenure that is most comfortable to them. If you wish to purchase an existing private property or construct your new home on a private property, POSB might offer you the ideal deal.

    POSB HDB Loan

    POSB’s HDB loan lets you purchase a new or resale HDB flat at an affordable rate of interest and with a tenure of your choice. The HDB Loan comes with favorable interest rate packages that will let you make easy repayments towards your loan.

    Mortgage and HDB Refinancing

    You can refinance your mortgage loan or HDB loan with POSB at a reduced and affordable rate of interest. You can also correspondingly adjust your tenure based on the amount you wish to refinance.

    POSB Renovation Loan

    POSB also offers home renovation loans to help you give your home the ideal facelift that it deserves. If you already have a home loan with POSB, you’ll get your renovation loan at a much reduced interest rate.

    Features and Benefits of the POSB Housing Loan

    Choosing POSB for your home loan comes with a host of benefits that are worth noting. Let’s take a look at the most prominent benefits and features associated with the loan:

    • The bank will fund up to 80% of the value of your private property or HDB flat.
    • Refinancing options will help you get a much lower interest rate for the remaining repayment period. You can also choose a repayment period that best suits your interest depending on the quantum of amount you’ve already repaid.
    • Tenure options are flexible and usually stretch to a period of about 30 years. You can choose a tenure that is most convenient to your repayment demands.
    • POSB gives you a combination of interest rate packages to choose from. You can choose from a fixed interest rate package or a floating rate package.
    • POSB also gives you the option to pre-close your loan before the stipulated tenure is due to end.
    • The loan application process is seamless. Repayments can also be made in a simple and convenient manner.

    POSB Private Property Loan Interest Rates

    Interest Rate Package First Year (Interest p.a.) Second Year (Interest p.a.) Third Year (Interest p.a.) Fourth Year Onwards (Interest p.a.)
    Fixed Interest Rate Package 1.68% 1.68% 1.68% FHR+1.55%
    Floating Interest Rate Package (with 2-year lock-in period) FHR+1.15% FHR+1.25% FHR+1.25% FHR+1.25%
    Floating rate package (with ceiling cap for first two years) FHR+1.07% FHR+1.07% FHR+1.07% FHR+1.07%

    POSB HDB Loan Interest Rates

    Interest Rate Package First Year (Interest p.a.) Second Year (Interest p.a.) Third Year (Interest p.a.) Fourth Year Onwards (Interest p.a.)
    Fixed Interest Rate Package 1.68% 1.68% 1.68% FHR+1.55%
    Floating rate package (with ceiling cap for first two years) FHR+1.07% FHR+1.07% FHR+1.07% FHR+1.07%

    Note: The current POSB FHR 9-month interest rate is 0.25%. The interest rate ceiling of 1.72% will hold applicable for the first two years under the provided rate packages.

    POSB Housing Loan Fees and Charges

    Changing the loan tenure S$250
    Administrative fee for third party insurance S$300
    Request for housing loan statements Current year statement – S$20 Statement for the last two years – S$30 Statement requested for a period of more than 3 years prior – S$50

    Eligibility Criteria to apply for POSB Housing Loan

    You need to meet the following parameters to be able to apply for a housing loan with POSB:

    • You should be at least 21 years old.
    • Your minimum monthly income should be S$1,500.

    Documents required to apply for the POSB Home Loan

    • Income Proof such as employment letter, computerized salary slips, or Letter of Appointment
    • Income Tax Notice of Assessment for the last 2 years.
    • NRIC copy – both the sides  
    • Valuation of the new property you intend to buy
    • Contract of ownership of property and agreement showing intention to sell the property
    • Marriage certificate, if required

    How to Apply for a POSB Home Loan in Singapore

    You can apply for a home loan with POSB by visiting the official POSB website and filling out the online home loan application form. The bank also gives you the provision of uploading your documents online, following which a representative from the bank will get in touch with you and help you fill-out the remainder of your application. Your application will then be processed and reviewed by the bank.

    POSB Housing Loan Refinancing

    Refinancing your HDB Flat with POSB will give you the same interest rates as the ones available for purchase of an HDB flat. The same applies to refinancing your private property loan.

    Modes of Repayment

    Repayments towards your POSB Home Loan can be made through internet banking. Log in with your internet banking credentials, select the beneficiary POSB account and transfer the monthly repayment amount to the bank. You can also pay through the POSB mobile application if you have an account with POSB.

    FAQs

    1. Can I choose a rate package of my choice? Does the bank allow me to do that?

      A. Yes. You can choose an interest rate package of your choice. You can either choose a floating rate package or a fixed rate package.

    2. What is FHR9?

      FHR9 is the current POSB 9-month Fixed Deposit Interest Rate for deposit amounts between S$1,000 and S$9,999.

    3. How will my credit score influence my home loan application?

      A. You will need to have a clean credit history for a minimum period of 1 year if your application has to be accepted.

    4. Will I have to separately apply for insurance if I’m taking a home loan with POSB?

      A. Yes, you will have to apply for a life insurance policy or a term life policy separately. If you wish to apply for a home insurance, you’ll need to apply for that separately too.

    5. Can I switch my interest rate package mid-tenure?

      A. Yes you can, in certain cases. Check with the bank for more information.

    6. How to calculate EMI for POSB Home Loans?

      A. You can use the DBS Home Loan calculator to easily calculate the EMI amount you have to pay towards your home loan each month, so that you can budget your expenses accordingly.

    7. Who all can apply for POSB HBD Home Loan?

      A. Individuals who are HDB owners and have existing loans with the Housing Development Board or any other banks or financial institutions and new HDB owners who have completed flats, are eligible to apply for POSB HBD home loan.

    8. What is the minimum loan amount applicable?

      A. The minimum loan amount applicable for POSB HDB Home Loan and Private Property Home Loan is S$ 100,000. With the Renovation Loan, the maximum loan amount offered is S$30,000

    9. Do applicants get concessionary home loan rates on POSB HDB Home Loan?

      A. Yes, borrowers can enjoy concessionary loan rates for the first 5 years of the loan tenure, if they avail POSB HDB Home Loan.

    10. What are the eligibility criteria for the POSB Renovation Loan?

      A. You will be eligible for this loan if you are:

      • A Citizen or a Permanent Resident of Singapore in the age group of 21 to 65 years.
      • The owner of the property that has to be renovated
      • An individual whose annual income is S$24,000 and more

    News About Home Loan

    • How to Get Your Home Loan Approved Faster?

      It is quite disheartening to face a rejection on your home loan approval. Often loan applicants don’t know why their mortgage loan application is rejected. Let us help you with a few tips to ensure that your home loan approval process is quick and hassle-free.

        • Credit score

        Your credit score has a huge impact on your home loan approval. Having a low credit score can put an end to your mortgage loan application. Before applying for a home loan make sure you have a clean credit report. Ensure to pay your credit card bills on time and maintain a high credit score.

        • Job stability

        Make sure you have a steady job when you are planning to apply for a home loan. In case there are changes to your annual income, the loan approval might get delayed. Lenders will evaluate your home loan application based on your fixed income.

        • Keep your debt minimal and avoid taking new debt

        Before initiating your mortgage loan application, lenders check on your debt-to-income ratio. In case you have a high credit debt on you, you will have a high debt ratio. This might result in getting your home loan application rejected. Make sure the amount you owe to the creditors is as low as possible. Make sure you are not taking on any new debt when you are undergoing the mortgage loan process.

        • Documentation

        Ensure to keep all your required documents ready well in advance. By doing this your loan application process fastens quite a bit.

      06th October 2017

       
    • Choosing the right calculator for comparison of Singapore home loans

      A good calculator gives you an amortised schedule breakdown after you input your loan amount, tenor and interest rates for a definite period of time, usually at least 5 years. You should know the following things when looking for the right calculator:

        • A good calculator shows you your monthly payment depending on your tenure and your interest rate. This also gives you your outstanding principal loan amount at different periods of your loan tenure. Keep in mind that due to the increasing cumulative interest rates, the amount you’ll end up paying will be much larger than the principal due at any time.

        • An important feature of the home loan calculators that compare the mortgages in Singapore is that they tell you the updated monthly instalments as per the changes in the annual interest rates.

        • Your housing loan principal is the loan amount in case of a loan, and in case you are refinancing a property, it is the outstanding amount in your mortgage refinancing housing loan.

      22nd September 2017

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