So you’ve come to the conclusion that it would be a good idea to own a home in Singapore, and why not? It’s a great country though it is a bit on the expensive side. It will be up to you to navigate the housing market and find the perfect place to live, but fortunately, you don’t have to go alone. Let’s just say that we have done this a time or two, and we are more than ready to use our expertise to aid you in landing the perfect Singapore Housing Loan. So what is this loan exactly? Why do you need it? Can’t you simply purchase your home outright? The answer is absolute yes, but do you have the money? Many good homes in Singapore cost quite a bit, and your ability to buy them depends upon your ability to obtain a loan from one of the many popular lending institutions out there.
How do Loans Work?
These loans are without a doubt some of the most complicated that you will come across; however they can also be the most rewarding if you allow them to work their magic. So what is the cost exactly? What will it take for you to get the loan you need? How do you go about it? Most importantly, how do loans work? With a loan from a bank or other lending institution, you will be given a certain amount that you can borrow in a letter of offer. Keep in mind that while the letter of offer is not cash, it can be used as cash when you are attempting to buy a home. That being the case, you will want to make sure that your credit is clean, and that you obtain as much of an offer as you possibly can. Once the loan goes through, and you have your home, you will be responsible for paying the amount borrowed, and this will be done via an interest rate placed upon the principal that you’ve purchased. The size of the loan determines the interest rate, and once you have paid it off, the home will be yours. Keep in mind, however, that taking out a home loan in Singapore is a multi-year commitment, and most people take up to twenty years to pay it off in full.
Choosing the Right Loan
Along with getting a loan, you need to make sure that you get the RIGHT loan for your needs. For example, you could choose a loan with a fixed rate repayment, which is an excellent idea simply because the interest rate will never change, and you can predict your payment each and every month. An adjustable rate mortgage, on the other hand, also known as a floating mortgage, will serve you well. Because you will be able to take advantage of the changing, and possibly lowering rates of the Singapore housing loan market. It all depends upon what you can afford, and you must operate on the understanding that you can always refinance through property portals such as PropertyGuru.com who have a plethora of offers from top tier banks across the country.
Considering Property Expenses
Buying your home and paying your mortgage is not the end of the story when it comes to your expenses. There are many things that you may not have considered yet, for example, you still have property tax that is payable the same day that you take ownership of the property. This tax is paid to the IRAS, and owner-occupied homes cost less than investment properties. You must also consider the cost of utilities which will have to be paid monthly, and will depend highly upon you use. In other words, the more you use, the more you are going to pay. Finally, you have your insurance to consider.
Rather than letting your insurance go, as you might have considered with a house bought and paid for with cash. You will need to pay for home contents insurance as well as other types including mortgage insurance, fire insurance, etc. This will help to ensure that your home remains intact and that you can address any damages that occur with confidence. Without insurance, you would be hard pressed to do any of that and let’s face it, the last thing you want is to see your mortgage go up in flames without any available recourse.
These expenses, unfortunately, are not optional, especially if you plan to have a comfortable standard of living for yourself in Singapore; while it is the most expensive country in the world. It is also one of the finest, and you will undoubtedly find that you are proud to own a home here, in one of the world’s greatest cities. Check out the website for more information.
Thanks for reading.