The world’s an unexpected place and while trotting the journey of life, some urgent financial requirement can pose as a facer. A person then heads to consider bank loan singapore for settling the matters such as for medical emergencies, for getting a home, for study purposes, and so forth. However, when borrowing finances from the bank, you will likely be overwhelmed to the cusp of crying noticing the jargon and paperwork. You just have endless questions in your mind, most of which you prefer to keep to yourself, thinking them silly. And this is indeed not a pragmatic approach here. Here, we shall walk you through some of the most common questions that irk the solicitors of home loans. Read on!
From whom should you get a home loan in Singapore?
In case you are planning to purchase an HDB apartment, you can borrow it from any Singapore bank or from Housing and Development Board itself. Now, who should you choose for the purpose, consider the below-mentioned factors:
- Check your eligibility: Before applying for an HDB loan, see if you are eligible for it or not. HDB loans are exclusively available for those whose household income is between $14000, and in the case of extended families, it should be $21000. Furthermore, you must not be owning any private property in the past 30 months, or you will have to head to the bank.
- Down payment matter: It is the criteria of getting a bank loan that you may borrow the home up to 75% of the property, whereas with an HDB loan, you can borrow only 90% of the value of your home. Therefore, if you choose to get a bank loan, you will need to deposit a minimum of 25% of the selling cost, where you have to offer 5% in cash.
- Employ your CPF savings: If you wish to use your CPF savings to buy your home you will have to choose an HDB loan. This will enable the majority of your savings in your CPF Ordinary Account to get transferred for the down payment of the home. However, there is an alternative for holding up to $20,000 in your Ordinary Account. Once HDB deducts the stipulated amount, it will send a shortfall to the person as an HDB loan. In case you want your savings to remain in CPF, you can choose bank loan singapore which permits you to pose forth complete down payment in cash mode.
With this information about bank loans and HDB loans, you can finally decide on what to choose. Your dream home awaits you!