Mortgage loans in Singapore serve as a financial tool enabling individuals to purchase a home. You are also able to refinance your Mortgage from one bank to another bank, to enjoy interest savings on mortgage loan, which thus, reduce your monthly installment payment. These loans are secured against the property, giving lenders the right to take possession if the borrower defaults on repayment.
Types of Mortgage Loan
Fixed-rate
Floating-rate
bank's Board rate
Various types of mortgage loans exist in Singapore, including fixed-rate, floating-rate, and bank's Board rate. Each type has its own set of advantages and disadvantages, emphasizing the need for careful consideration based on individual financial situations and goals.
Documentation Required
To secure a mortgage loan in Singapore, individuals typically need to provide documents such as pay slips, Notice of Assessment, option to purchase and latest bank statement showing the outstanding loan amount (for refinancing only). Lenders use this information to assess the borrower's loan eligibility as well as the loan tenure.
Factors to Consider
Beyond interest rates, other crucial factors to consider when choosing a mortgage loan include loan terms, down payment requirements, and repayment options. Evaluating these factors helps borrowers make informed decisions aligned with their financial circumstances