Residential Property Home Loan
Whether buying a property for own stay or investment, for long term or short term, choosing the right loan package is a crucial process as it will eliminate unnecessary costs later.
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.
Choice of reference rates for home loans include; (i) Singapore Interbank Offer Rate (SIBOR), (ii) Swap Offer Rate (SOR), (iii) Board Rates (to the Banks' discretion) or (iv) Fixed Rates.
Commercial & Industrial Property Loan
The Total Debt Servicing Ration (TDSR) framework was implemented on commercial property on June 2013. This is only applicable to sole proprietorships and any investment company that is set up to purchase property.
There is no ABSD on commercial properties. However, Seller Stamp Duty (SSD) applies for industrial properties. This is applied at 15% of the sale price if sold on the first year, 10% for the second year, and 5% for the third year.
Home Construction Loan
You can consider taking up Construction Loan if you are planning to rebuild or carry out Addition & Alteration (A&A) works on your landed property. Upon completion of the property, the construction loan will typically then be converted to your home loan terms.
When you apply for a Construction Loan, you must have appointed the main contractor and also Qualified Person (ie architect / professional engineer).
You will need a Bridging Loan when you are selling and buying a property at the same time and your sales proceeds will not come in time for the downpayment of your purchase. Banks will only grant bridging loans on your sales proceeds.
Most banks offer Bridging Loans 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.
International Home Loan
Properties situated in the United Kingdom, Australia, New Zealand, Malaysia, Thailand, Japan can be financed in Singapore.
Taking Singdollar financing for overseas properties eliminates currency risks. Singdollar financing rates are also generally lower than onshore banks in the host countries. Dual currency loans give you the flexibility to switch between currencies.
GET A LOAN ELIGIBILITY CHECK
Please contact us to get the most accurate assessment. Below are only the basic guides for loan eligibility.
For first home loan you are eligible up to 80% financing, 2nd housing loan 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).
Total Debt Servicing Ratio (TDSR) is at 60% of borrower's gross income. Banks will take into consideration the borrower's other outstanding debt obligations when assessing the loan application. This is applicable to Private property, HDB and Commercial Property that bought under individuals, sole proprietorships or any investment company that is set up to purchase the property.
Mortgage Service Ratio (MSR) is applicable to HDB and Executive Condominium (purchased direct from developer). Buyers are eligible on up to 30% of the their gross monthly income to repay their home loans.
Redbrick is an established mortgage advisory that assists investors and homeowners in sourcing for the best financing optioncatered for their needs. We partner with major local and international financial institutions and deal with the banks on your behalf.
Choosing the right housing loan package can save you thousands of dollars every year, if not more. At Redbrick you enjoy convenience, 'best-in-market' housing loan rates, as well as professional advice at zero cost.
Obtaining a mortgage on your property is not a one-time affair. Redbrick constantly keeps a lookout for better financing terms available on the market and actively recalibrates your mortgage using our in-house mortgage portfolio management system to ensure that you incur the least interest cost ALL THE TIME!