Housing Loan Singapore

www.Housingloansingapore.com

Providing online home loan services since 2009

SIBOR or SOR?

SIBOR is generally more stable while SWAP tend to fluctuate more. However 3-month SWAP has recently stayed consistently lower than 3-month SIBOR for an extended period of time. SOR is also very reactive to currency exchange rates.

Mortgage

Approval In Principle Mortgage Loan Singapore

Approval in principle mortgage loans are gaining more widespread understanding.

More and more prospective home buyers are realizing the value of value of getting an in-principle approval for a home loan before going about searching for a house to purchase.

Because of this, there are a lot of mortgage calculators which you can find online that can help you estimate what kind of a loan quantum you can possibly take up after accounting for LTV and TDSR.

However, do be mindful those are just figures that may not show a true picture of your situation.

There are also a lot of irrelevant housing loan calculators online.

To get a more concrete commitment from a home loan lender, it is best to get the lender’s approval in principle in writing.

Sometimes in the form of a letter. But most often via email or messaging.

Here are some reasons why so many home buyers are going for approval in principal home loans these days.

1) Narrow down property search

A housing loan that has an in principle approval helps you to draw parameters of what price range of properties you can or cannot afford to buy.

This not only helps you save your own personal time (which you hopefully find invaluable), it also help your real estate agent be more productive in his work.

Some top property agents do not entertain home buyers who do not have a housing loan that is approved in principle.

It would be a total waste of resources to find a house which you want but cannot afford it. Even worse if you made an offer to buy which is accepted and cannot obtain financing for closing.

2) Estimate down payment

By having a formal commitment from a mortgage lender on the approval quantum, you can have an idea of how big a down payment you have to pay for the property.

This helps you monitor how much cash you have to prepare for the purchase of a house.

You can then plan on liquidating your assets when you have finally decided on buying a piece of property.

As real estate transactions have to follow a strict scheduled timeline, failing to comply with time lines can affect the outcome of the deal.

It’s even possible that a frustrated seller pulls out of the deal and demands damages from you.

3) Losing booking fees

There are horror stories going around the market all the time regarding home buyers who lost their booking fees because they could not obtain a mortgage to finance their purchase.

When you pay a booking fee for the purchase of property, you would be given some time (usually 2 weeks) to officially exercise the option to purchase. Failing which will result in the loss of the booking fee.

This can be considered as payment for the opportunity costs incurred by the seller for not entertaining other offers to buy the house during the option’s active period.

In fact, the recent policies on Singapore housing loans caused many people to lose their down payments.

This would not have happened if you have an approved in principle mortgage loan on hand.

4) Competing buyers

A good house can be bought by someone else in a matter of hours of you last viewing it.

Being unable to commit to the purchase immediately can let another buyer step in to snap up the house.

With a loan approved in principle, you can commit to buying an apartment at the very moment you feel right about it.

Some sellers would also not accept your booking fee if you do not hold an in principle approval home loan.

The lack of a pre-approved mortgage loan does not help the seller feel safer in any way to sell to you. And you really cannot blame them for feeling that way as there is no concrete financing arranged.

In summary, a loan that is approved in principle allows you to move fast and have better material information to make a real estate purchase.

You can commit to a purchase quickly and also prevent yourself from losing a deposit you have paid due to you being unable to secure a Singapore mortgage loan.

Contact us for a FREE housing loan analysis of your likely outcome if your apply for a approval in principle home loan.


approval in principle housing loan

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It makes absolutely no sense to pay more
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What We Do For You

We Gather And Provide You Information On The Best Housing Loans In Singapore So That You Can Make A Better Decision Based On What Is Available In The Market

Which bank do you recommend for home loans in Singapore?

We don't recommend banks. We recommend you the best home loan that suits your profile and financial position.

How Does SOR Rates Hit Negative Value?

SOR rates are calculated with a complex financial formula, solved with simple algebra. The results of solving the equation therefore depends on the inputs used. Varying inputs that result from economic impacts and indicators can lead to negative value when the formula is solved. Key input indicators include USD/SGD spot rates and USD/SGD forward rates.

HDB loan or bank housing loan?

Our opinion is to always take a HDB concessionary loan if you are eligible for one. One of HDB's objectives is to to provide affordable housing for the people. While a bank is profit driven.

Which bank offers the best home loan deals?

Interest rates and spreads are not all that matter. Don't ignore the closing costs involved. Different banks can have different customized home loans for you. Don't be surprised if you will save more on a home loan that charges more interest because of the lesser closing costs involved. This is especially so if you know that you will refinance your home loan as soon as the lock in period has expired.
Want to see housing loan interest rate trends for the last 36 months?

Enter your email below so we can send it to you.

It makes absolutely no sense to pay more
than you have to on a home loan.

Find the best mortgage rates here
SEE RATES
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It makes absolutely no sense to pay more than you have to on a home loan.

Find the best mortgage rates here
VIEW TODAY'S RATES
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