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I WANT TO REFINANCE
I WANT TO
BUY A HOME
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Updated December 4, 2023
Singapore’s 1st
Loan Marketplace
Purchasing a private property is a major investment. As such, understanding loan eligibility from banks is important. Here are key factors that influence how much you can borrow.
For first-time buyers of private homes, banks in Singapore typically allow a maximum loan amount of 75% of the property's purchase price or valuation, whichever is lower. This loan-to-value (LTV) ratio means you'll need to pay at least 25% as the downpayment in cash and/or CPF savings.
While dependent on individual profiles, private home loan tenures can go up to 30 years or until the borrower reaches 65 years old. Longer terms spread repayment but incur more interest. Review options carefully.
As a Singaporean or PR, you can use your CPF Ordinary Account money to pay the downpayment for a private property. This reduces your cash requirement. However, utilization of CPF affects loan eligibility. Consult a mortgage advisor first.
| Bank | Scheme | Lock In Period | 1st Yr Interest | 2nd Yr Interest | 3rd Yr Interest | 4th Yr Interest | |
|---|---|---|---|---|---|---|---|
| Maybank | 2 Year Fixed (Flexi) | 2 years | 3.05% | 3.05% | 5.02% | 5.02% | |
| Promotion | 1 Year Fixed | 1 year | 3.05% | 4.25% | 4.25% | 4.75% | |
| Promotion | 2 Year Fixed (Flexi) | 2 years | 3.05% | 3.05% | 4.25% | 4.75% | |
| Promotion | 2 Year Fixed (Flexi) | 2 years | 3.10% | 3.10% | 4.75% | 4.75% | |
| Promotion | 2 Year Fixed (Flexi) | 2 years | 3.10% | 3.10% | 4.77% | 4.77% | |
| Promotion | 2 Year Fixed (Flexi) | 2 years | 3.10% | 3.10% | 4.75% | 4.75% | |
| Promotion | 2 Year Fixed (Flexi) | 2 years | 3.15% | 3.15% | 4.75% | 4.75% | |
| Promotion | 2 Year Fixed (Flexi) | 2 years | 3.15% | 3.15% | 4.75% | 4.75% | |
| Standard Chartered | 2 Year Fixed | 2 years | 3.15% | 3.15% | 4.65% | 4.75% | |
| Promotion | 2 Year Fixed | 2 years | 3.20% | 3.20% | 4.50% | 4.75% |
| Bank | Scheme | Lock In Period | 1st Yr Interest | 2nd Yr Interest | 3rd Yr Interest | 4th Yr Interest | |
|---|---|---|---|---|---|---|---|
| DBS | 3-Month SORA | 2 years | 4.30% | 4.30% | 4.30% | 4.30% | |
| Maybank | 3-Month SORA | 1 year | 4.30% | 4.30% | 4.30% | 4.75% | |
| Promotion | 3-Month SORA | 2 years | 4.30% | 4.30% | 4.55% | 4.75% | |
| RHB | 1-Month SORA | 2 years | 4.32% | 4.37% | 4.87% | 4.87% | |
| Promotion | 3-Month SORA | 2 years | 4.35% | 4.35% | 4.55% | 4.75% | |
| Promotion | 3-Month SORA | 2 years | 4.35% | 4.35% | 4.50% | 4.75% | |
| Standard Chartered | 3-Month SORA (Priority Banking) | 1 year | 4.35% | 4.35% | 4.40% | 4.75% | |
| CIMB | 3-Month SORA | 2 years | 4.40% | 4.45% | 4.50% | 4.85% | |
| Maybank | 1-Month SORA | 1 year | 4.52% | 4.52% | 5.52% | 5.52% |
*Today's Mortgage Rates - 03 December 2023
Understanding how property purchases and payments work is critical. Factor in upfront costs like option fees, down payments, legal fees and stamp duties. Making smart choices about using cash or CPF funds is key. Consider the option fee and downpayment requirements carefully. Don't overlook legal fees and stamp duties too also weigh interest rates and lock-in periods.
Always evaluate your current finances and future financial needs. This helps determine the best repayment plans for your unique financial situation.
Interest rates are the most important factor when selecting a private property bank loan. Rates impact your total repayment amount and monthly payments. There are fixed, variable, and SIBOR rates to consider. The rate type you pick affects your total and monthly repayments.
Variable rates fluctuate more, meaning higher risk but potential better rewards. SIBOR rates are even more variable, with possible high rewards or costs. Fixed rates stay the same regardless of market changes.
On ROSHI’s home loan marketplace, you can submit a mortgage application to connect with lenders and brokers.
Over 80% of private property loan approvals depend mainly on current interest rates, as rates affect the total mortgage cost. Credit score matters too, but less than expected.
Also consider a loan’s flexibility to refinance when you want, as most refinance 2-4 years in on a new lower rate. Ensure your loan allows refinancing to switch to a better option if rates drop.
Watch for refinancing fees – some banks charge small amounts to refinance. But new loans may waive fees, avoiding this cost.
Choosing floating or fixed rates is tough. If you can refinance, floating rates can work better, moving with the market.
With no refinancing, fixed rates are safer, locking in your rate regardless of market changes. Fixed rates reduce risk while floating rates offer potential savings.
Consider:
Anyone can apply, but approval depends on your financials. Comparing loans on platforms like ROSHI simplifies choosing an ideal option.
Banks will still vet your income, assets, employment stability, and credit. Collateral like a car or land may be required. Research bank criteria before applying.
Most loans allow 15-30 years for repayment. Shorter terms have less interest but longer terms allow faster home ownership. You can repay early to reduce interest.
If Your Loan Application is Rejected consider the following:
Lenders use debt ratios – your monthly payments and total debts compared to income. Stay below 28% and 36% for approval.
Just because you’re approved for a large loan doesn’t mean you should take it. Leave savings so your budget fits.
Account for furniture, appliances, renovations and more you’ll need when budgeting for a home.
Consider future children, cars, etc. that will require more space or expenses down the road.
Aim below your max budget for wiggle room. Unexpected costs can come up.
You’ll likely need to bid above asking price. Leave budget room to increase your offer.
A private property bank loan, also called a mortgage, is financing from a bank for purchasing a private property. These typically last 25-30 years, with weekly/monthly repayments.
If you miss payments, the lender can force you to sell the property to repay them. Ensure you can afford payments before accepting a loan.
You’ll pay interest, usually around 4-5% of the loan amount. Exact interest depends on the loan term and amount borrowed.
It’s tougher to get approved with bad credit, but possible. Banks may offer a smaller loan or higher rate. Improve your credit before applying.
Rates fluctuate, so the lowest rate lender changes. Compare updated rates across banks to find the best current deal.
Wait until after your loan’s lock-in period, then refinance only if you find a better rate to reduce overall repayment costs.
Foreigners can often get private property loans, but generally not HDB loans. Foreign ownership rules apply.
You can’t get a mortgage for renovations – they are for purchasing a property only. Use a renovation or personal loan instead.
You can get a loan for a private property still being built. Financing is available before or during construction.
SIBOR is the Singapore Interbank Offered Rate – the interest rate banks use to lend to each other. It influences floating rate mortgages.
