Housing Loan

Long Term Planning For Singapore Housing Loan

Buying a residential property is a long-term financial commitment, it should not be burdened with debt. Hence, it is crucial for you to look into the housing loan planning seriously, to assess your budget carefully before you start looking for an ideal home to buy.

You should first work out the following:

• What you can afford? You need to look at your current household income and available savings, any existing expenses and debt obligation, as well as the loan amount you are eligible for based on your age.

• What you need to pay for? Buying a residential property in Singapore involves making some upfront payments, as well as monthly housing loan instalments. Not all the amount you can utilise your CPF savings.

We compile all the information you need and have put together some pointers to help you with your housing loan planning when it comes to buying residential property in Singapore:

• Cash Payment for Purchase of Property
• Progressive Payment Schedule for New Condo
• Payment Schedule for Resale Condo
• CPF Public Housing Scheme
• Using CPF for Private Property
• Loan-To-Value
• Loan Tenure
• Mortgage Servicing Ratio (MSR)
• Total Debt Servicing Ratio (TDSR)
• Bridging Loan for EC Purchase
• Refinancing Home Loan
• Buyer’s Stamp Duty
• Additional Buyer’s Stamp Duty
• Seller’s Stamp Duty

Whether you are planning to buy a private or public residential property, upgrade to a bigger property or right-size to a smaller property, or thinking of refinance your existing home mortgage, let us help you to determine the right loan package with attractive interest rates that tailored to your housing financial needs.

Additional Tips On Borrowing

• Do not over-stretch your budget – It may be tempting to borrow as much as possible when the initial cost is manageable, but you could get into financial difficulties if you can’t keep up your repayments. Live within your means and don’t over-stretch your budget.

• Budget for increased costs in future – Do not borrow the maximum you can afford now. Give some allowance for interest rates rise or CPF contribution rate changes in future. Contributions to CPF Ordinary Account decreases as you age. You may need to use more cash for future instalments. Borrow only what you need and can afford to pay back monthly based on your income after setting aside enough funds for your monthly living expenses as well as emergencies.

• Choose a shorter repayment period – The longer the repayment period means you have to pay more interest and your outstanding loan is reducing at a slower rate every year. Hence it will be more financially prudent to choose a shorter loan repayment period.