Steps to Apply for Mortgage
Are you planning to relocate in Singapore? Though there are several condos and houses you can rent, it is still a good idea to buy a property especially if you are planning to stay for several years in the country. You can use the following tips as your guideline:
1. Make sure you are eligible.
The requirements can vary from one lending institution to another, so you better make sure you can obtain a list before you apply. Normally, you will be asked for your income documents such as your payslip and IR8A form as well as your option to purchase.
Sometimes age is used to determine your eligibility. They may be open to borrowers who are 21 years old up to 60 years old. Others may demand you are a Singaporean citizen or a holder of permanent residence.
2. Know the limits.
How much can you borrow? You have to know this one as most lenders would not give you the full amount, especially if you are a non-resident. For instance, some banks may only give you up to 1 million SGD. Thus, you have to come up for the rest of the balance.
3. Decide what type of loan you want to obtain.
There are two general types of loans offered in Singapore: purchase of completed properties or a private home loan and refinancing loan, also referred as an existing home loan.
4. Find a good lender.
Your lender can definitely make or break your Singapore private home loan application, so choose wisely. You may look for them online, as there are plenty of them in the Web. Nevertheless, always come up with a list of criteria.
First, always opt for those that are considered reputable. You will know it by reading their FAQs, testimonials, and testing them out by calling or e-mailing their customer care. Make sure you will not be required to pay for anything, especially if you are just asking for a quote. Payments usually happen when you are already in the process of filing for your private home loan—when you are already approved and you have to pay for the financing costs and down payment.