You just purchased your ideal home and you have great ideas on the renovations and the beautiful interior designs for your new home. Bequest plays a part by helping you to secure the ideal home loan for your housing loan needs. Our mortgage legacy planners have helped many of our clients to find the right mortgage solution for their housing needs. We understand that this new purchase will probably be your biggest financial commitment ever and we are here to help you understand the various banks offerings so as to allow you to choose the best fit home loan. The main features of the loan package we should look at are interest rates, loan-to-value ratio, loan tenure, repayment, lock-in-period, prepayment penalties, subsidies, interest offset features, valuation etc. You have a choice of the following types of rates: (a) Fixed Deposit Rates, (b) Singapore Interbank Offer Rate (SIBOR), (c) Swap Offer Rate (SOR), (d) Board Rates (to the Banks’ discretion) or (e) Fixed Rates.
Commercial mortgages cater to a more complex approach to what a traditional residential mortgage can offer. For this reason it’s very important to liaise with someone who understands how best to act in your interest to assist you with your various commercial mortgage needs. Furthermore, some of the banks and financial institutions offer bundled mortgage solutions that also caters to your business needs. Our mortgage legacy planners are professionally trained to assist and guide you to find the right solution for both your business mortgage needs.
In Singapore, banks have a slightly different repayment process for setting up construction loans as compared to a regular home loan for a completed house. Bundled up construction loans with your housing loan, the bank will have a set of progressively drawn repayments that add up to the total amount you borrowed. As your contractor builds your home, your bank is sent an invoice for each stage of construction as it’s completed. Your loan is drawn several times until your contractor has been paid, your house is complete and then you get to move in once all these stages are finalised. Most banks will have the option of allowing you to convert the outstanding construction loan to an equity loan where the interest rate will be that of the prevailing housing loan rate. It sounds complicated, but you don’t have to work through it alone. You have the option of working with our professionally trained mortgage legacy planners who will be happy to walk you through the entire process till the completion of your dream house.
You may utilize a Bridging Loan when you are selling and buying a property at the same time. This is because the cash proceeds from the sale may not be timely for the downpayment of your purchase. The Banks will only grant a bridging loan once you have sold the property. This loan can be used to exercise your Option, pay downpayment, legal fees and stamp duties. Maximum repayment period is up to 6 months. This timeline must be well planned. Once the sale of the existing property is completed, the sales proceeds will be used to pay off the Bridging Loan and interest costs.
If your property has appreciated in value over the years, an additional cash out of equity term loan from the property is allowed. Equity loan can be obtained for your personal use such as debt consolidation, business expansion, children’s education and car loan etc. The interest rate is the same as the Housing Loan rate, definitely the lowest personal loan one could possibly get. The quantum of loan available for cashout depends on your outstanding loan and total CPF usage on your property over the property valuation.
Others refer to this as decouple. Due to a change in situation and needs, a couple or borrowers need options to decouple their housing loans. A couple is in the midst divorce, one party is required to purchase 50% part share of the house from the other party. These days clients goes through decouple to avoid hefty additional buyers stamp duty on their next property purchase
If your home loan application has been rejected with your existing financier due to TDSR, fret not, because there are different banks with different TDSR exemption policies in excess of MAS guidelines. We can help you to find the right banks to refinance your existing home loan and enjoy lower your interest repayments.
Occasionally we help our client to customised their mortgage financing needs to our non-bank financial lenders to provide alternative financing methods for our clients. Every client’s mortgage needs is different and our partners has the infrastructure to provide the lending
If you require to check the valuation of a property, kindly text us the property address, with the details of the property like the built in area and asking price. Further information like land area, built up area, age and type of the property, number of storeys will be required for landed properties.
With the Monetary Authority of Singapore (MAS)’s Total Debt Servicing Ratio (TDSR) in place, there are certain restrictions to be observed. TDSR is at 60% of the borrower’s gross salary. Typically, the Banks will factor in other monthly & outstanding loan obligations when assessing the loan application. This is applicable to all HDBs, Private and Commercial Properties that are bought under individuals, sole proprietorships or any investment holding firms. As for the HDBs and Executive Condominiums (purchased direct from developer), the Mortgage Service Ratio (MSR) will be applicable. It is essential that you do an Approval In Principle Loan before you start to stop around for your dream home. For first home loan you are eligible up to 80% loan, 2nd housing loan will be at 50% (30% if loan tenure is more than 30 years or loan past age 65). 3rd housing loan at 40%, (20% if loan tenure is more than 30 years).