Definition
Home Equity Line Of Credit (HELOC)
A home equity line of credit, HELOC in short, is a credit line secured by property. Because it is a secured credit facility as opposed to an unsecured one, it …
Gift Of Equity
When the transaction price of a property is considerably less than it’s market value, the difference is considered a gift by the seller. These types of …
Fixed Rate Mortgage
By definition, fixed rate mortgages are home loans with interest rates throughout the tenure of the loan. There are no home loans in Singapore with a fixed …
Letter Of Offer (LO)
The letter of offer (LO) is a document stating the terms of the home loan that is presented to an applicant upon the approval of the loan. Also known as a …
Lending Rate
The lending rate generally means the interest rate in which lenders place on their loan and credit products. It is the reverse of what the bank pays for …
Effective Rate
Effective interest rate that a borrower actually incurs in a year after adjusting to compounding. When it comes to dealing with a bank, interest rates are …
Deferred Interest
When the monthly installment payment on the mortgage is not enough to cover the actual interest incurred, the difference due becomes deferred interest which is …
Leasehold
Leasehold real estate refers to property that has a contractual agreement between lessor and lessee that grants the latter exclusive right of use and control, …
Legal Clawback
A legal clawback is a contractual clause in the mortgage agreement that stipulates legal subsidies granted by the lender has to be paid back under certain …
Co-Borrower
When 2 or more people have signed up as borrowers of a housing loan, they are jointly responsible to repay it and become co-borrowers. This happens commonly in …
