The bank will be all the more willing to grant you a favorable rate that your file will be solid. If the quality criteria listed below are met, the usual rate will be reduced by 0.25%. Ask to borrow 90% at most of the value of the home (the “quota”), for a minimum amount of 75,000 SGDs, in 25 years at most. Your personal contribution must really be made up of own funds, without coming from an installment loan or a property guarantee that would be added to the mortgage registration. Monthly payments will not exceed 40% of your income. It is also better for the loan to be subscribed by two people, each of whom has professional income. If, after deducting the monthly payments, an amount of 2,200 SGDs for a couple or 1,500 SGDs for an isolated (to increase 125 SGDs per child) remains, it will play in your favor. Finally, the bank will also appreciate that you and your partner report uninterrupted seniority of three years to one or more employers. There are numerous credit loan company singapore loan providers out there to choose from. In order to know more about them, one can always do their own prior research via the internet.
Compare all fees
In the case of an average mortgage, additional charges can easily account for around 40 percent of interest charges. If the offer is “bundled”, the highest additional cost item will be the “outstanding balance” insurance policy (in the event of the death of the borrower (s), the insurer would pay the outstanding balance. The existence of a balance of pay insurance is usually a compulsory condition for obtaining credit. Some banks offer an interesting interest rate, which they compensate by obliging the borrower to subscribe on less advantageous terms the insurance remaining balance at home or with an insurer that they “recommend”. For a mortgage loan of 200,000 SGDs over 25 years at a fixed rate of 2.35%, the constant monthly payments (interest + capital) amount to 880 SGDs and the total interest to 64.003 SGDs. Take a credit subscribed by a man and a woman aged 35, nonsmokers, who both contract an insurance balance remaining due for 100% of the debt (if one of the partners had to die, the other would, therefore, have nothing to repay). But the obligations do not stop there.
Choose a fixed rate
The main difference between the fixed or semi-fixed rate (the rate remains stable throughout the credit period or at least a significant fraction of it) on the one hand and the revisable rate every year, every three years or every five years on the other hand, usually resides in its price. Variable rate loans are in principle the most attractive since the monthly payments are much lower than in the case of a fixed rate formula. But now that rates have reached historically low levels, fixed and semi-fixed rate offers are doing very well. It is much more likely that rates will rise, gradually or abruptly, in the coming years, that they will continue to give ground.