New Property

Typically, a home loan is the amount you took out from HDB (HLE) or the bank needed to finance your residential property.

Subjected to the bank and HDB’s requirements eligibility which includes below:

  • Income ceiling – Minimum monthly income
  • Residency & Household status
  • Loan quantum
  • Credit Assessment
  • Fulfillment of HDB’s or bank’s internal credit requirement

Home Loan and its eligibility

01.

Maximum Loan Amount

The maximum amount that you can borrow depends on your financier’s Loan-to Value (LTV) ratio. It is also subjected on whether you are able to meet the customary Total Debt Servicing Ratio (TDSR) and Mortgage Servicing Ratio (MSR).

02.

Approval In Principle (AIP)

The maximum amount that you can borrow depends on your financier’s Loan-to Value (LTV) ratio. It is also subjected on whether you are able to meet the customary Total Debt Servicing Ratio (TDSR) and Mortgage Servicing Ratio (MSR).

03.

Apply for a Home Loan

Rule of the thumb is to do your homework diligently and work out your budget wisely for your dream home. Ensure that you have met the eligibility requirements set by HDB or the bank. Prepare yourself financially on how much you could take out the loan so you can manage the expectations required.

Get a free no-obligation assessment today!

Drop Us A Message

Types of Home Loans in Singapore

Private Property

For private properties, a bank loan is the only option with the maximum home loan period up to 35 years.

HDB

Have the flexibility to take a loan directly from HDB or a bank to finance your home sweet home. Maximum loan tenure is up to 30 years.

HDB Loan vs. Bank Loan

HDB has made its home loan accessible to suitable buyers by offering at a concessionary interest rate of 0.1% above the CPF OA interest rate. It also allow buyers to have a loan-to-value (LTV) ratio of up to 90%, compared to merely 75% from banks. Thus making it far more affordable option.

Fixed Rate

As the term suggest, the bank loan rates are fixed. It does not change even when the market rate fluctuates. The rates will remain the same throughout the contractual period and the interest will be variable after the fixed rate period.

Floating Rate

The bank loan rates varies and it is not fixed. It is linked closely or benchmarked against the public market indicators, such as the Singapore Overnight Rate Average (SORA). Working like a tide current, the interest rate will go up when the benchmarked rates increase.

Rather chat with our Loan Specialist?

Drop Us A Message