Mortgage Pedia

14/01/2021

LOWEST home loan rate from just 1.05% 🏠🏠

✅ Get a home loan rate from just 1.05%.
✅ This exclusive rate is only available for a limited time.
✅ Receive a cash back of up to $2,500 when you refinance with us.
✅ Receive a free gift worth up to $699 when you refinance with us.

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10/09/2020

Mortgage Loan: Costly Mistake Singaporeans Make (Part 5)

-Not building up any credit history before you try to take a home loan-

If you’ve never used any loans before in your life, it will be easier to get a home loan right? Because you have a “clean record”, you might argue.

Well, it doesn’t really work that way. When it comes to getting big loans, it’s more like a job application and less like a courtroom defence. Having a long record of good performance is more valuable than having no record at all.

If you’ve never used loans or any credit facility*, the banks sees “Cx” under your credit report. That means there’s insufficient data, and you’re a complete wild card. This can cause some banks to loan you less, which means you might need to fork out a bigger down payment.

A simple way around this is to take a small loan, and then repay it responsibly (e.g. borrow $5,000, and pay it back over the course of a year). Do this about 12 months before your home loan application, so you can apply with a good record.
*There’s no international data exchange between local credit bureaus and those in other countries. If you’re a foreigner, your credit score back home is likely irrelevant.

Stayed tuned for more tips on the mistakes that you should not make when getting a mortgage loan for the 1st time!

02/09/2020

Mortgage Loan: Costly Mistake Singaporeans Make (Part 4)

-Trying To Borrow For The Downpayment As Well-

At present, the minimum downpayment is 25%, up from 20% previously. At least five per cent of this downpayment must be in cash (the rest of the down payment can be from your CPF).

By law (MAS notice 632, to be precise), banks cannot lend you more money to cover the downpayment.

If you borrow for the downpayment before you try to get a home loan, it will affect your Total Debt Servicing Ratio (TDSR)*. This could result in your home loan application being rejected.

*Under the TDSR, your total monthly loan repayments – inclusive of all your debts, from personal loans to home loans – cannot exceed 60% of your income.

Mortgage Pedia is here to make sure you are in good hands, do not hesitate to reach out to us if you need help with your mortgage loan or even refinancing loan.

Next week, we will share more tips on how you can avoid the costly mistakes of getting a mortgage loan.

26/08/2020

Mortgage Loan: Costly Mistake Singaporeans Make (Part 3)

-You immediately reject loans with a lock-in clause-

The lock-in clause imposes a penalty, if you refinance into another loan package. Most lock-ins last two to three years (and note that a fixed rate automatically means a lock-in).

Because “lock in” sounds a lot like a jail term, a lot of home buyers immediately reject any loan that comes with it. But don’t be too quick to do so.

Sometimes, a loan might have a lower rate to compensate for its lock-in clause. And if you don’t intend to refinance during the lock-in period anyway, there’s effectively no drawback for you.

Don’t just reject loans with lock-ins as a matter of course. They can still be the best overall deal for you.

Refinance with us today to get the lowest rate today!

Next week, we will share more tips on how you can avoid the costly mistakes of getting a mortgage loan.

19/08/2020

Mortgage Loan: Costly Mistake Singaporeans Make (Part 2)

-You’re in a rush, so you secure the Option To Purchase (OTP) before you have loan approval-

This goes for both HDB flats and private properties.

The Option to Purchase (OTP) requires you to pay a non-refundable deposit to reserve the unit. You usually have 14 days to complete the transaction after signing the OTP (30 days if its signed overseas), otherwise it lapses and you may as well have used the deposit as toilet paper.

One dangerous mistake is to secure the OTP before you actually know if the bank or HDB will grant you a loan.

Imagine if you put down 1% of the purchase price as the OTP (i.e. $16,000) to secure the OTP on a condo. But later, you can’t find a bank that’s willing to loan you the rest of the money, for whatever reason.

You might find that, after 14 days of panicked phone calls and emails, you just gave the seller $16k for nothing.

Note that the same thing can happen with HDB flats if you put down the deposit before getting your HDB Loan Eligibility letter (for a HDB Concessionary Loan).

When intending to take a bank loan to finance your home’s purchase, the proper procedure is to secure Approval in Principle (AIP) from a bank before you commit to the OTP deposit. This is a written agreement by the bank to loan you a certain sum, if you buy a house while the AIP is valid.

Be sure to keep the above pointers in mind and avoid these costly mistakes when you start purchasing your property!

In the coming weeks, we will share with you more costly mistakes that Singaporeans make when they get a mortgage loan and how to avoid them. Be sure to keep a look out for this section!

Alternatively, you could reach out to us and we will share more information with you on how you can avoid all the costly mistakes and save on your Mortgage Loan.

12/08/2020

How Much You Can Actually Save If You Reduce Your HDB Loan Rate from 2.6% to 1.5%?

Refinancing a mortgage means paying off an existing loan and replacing it with a new one. There are many reasons why homeowners refinance: to obtain a lower interest rate; to shorten the term of their mortgage; to convert from an adjustable-rate mortgage to a fixed-rate mortgage, or vice versa; to tap into home equity to raise funds to deal with a financial emergency, finance a large purchase, or consolidate debt.

Refinancing To Secure a Lower Interest Rate

One of the best reasons to refinance is to lower the interest rate on your existing loan. Historically, the rule of thumb is that refinancing is a good idea if you can reduce your interest rate by at least 2%. However, many lenders say 1% savings is enough of an incentive to refinance.

Reducing your interest rate not only helps you save money, but it also increases the rate at which you build equity in your home, and it can decrease the size of your monthly payment. For example, a 30-year fixed-rate mortgage with an interest rate of 2.6% on a $200,000 home has a principal and interest payment of $801 with the total interest paid at $88,245. That same loan at 1.5% reduces your payment to $690 with the total interest paid at $48,487. That is a total of about $40,000 saved in total on the interest paid. (Refer to images below for a comparison)

The earlier you refinance, the more you save in the long run!

Reach out to us and start your refinancing with us to save as much as you can now!

05/08/2020

Mortgage Loan: Costly Mistake Singaporeans Make

-Getting A Loan From The First Banker You Come Across-

This typically happens when you’re at a condo showsuite, or are referred to a banker by a property agent.
A lot of Singaporeans don’t even question what happens next: they start talking about the home loan straight away, and the first bank they come across is the one they’ll use.

Don’t do that. Always make it a point to compare loan packages between banks, because the process is free and only takes a few minutes. In fact, many home loan comparison sites even have their own mortgage brokers, who will help you with the paperwork.

Note that there’s no real advantage to picking a bank with a higher interest rate.
In general, banks have a quota to meet when giving out loans, and they raise their interest rates as they near that quota. If you happen to pick a bank that currently has a high rate, you’ll be paying more for no reason.

This above is just one of the many mistakes that someone can make when getting a mortgage loan.

Next week, we will share with you more costly mistakes that Singaporeans make when they get a mortgage loan and how to avoid them.

Alternatively, you could reach out to us and we will share more information with you on how you can avoid all the costly mistakes and save on your Mortgage Loan.

29/07/2020

Today, let’s look at the 4 different types of home loan mortgage rates as of 2020 and their pros and cons.
Depending on your current situation, have a look at the table here, and plan which route is better for you.

Generally, there are 3 main groups of packages that people look for. Based on most stable rates, lowest rates and the most transparent rates.

Most stable mortgage package – Fixed rates, but more expensive
Lowest home loan package – SIBOR/SOR-pegged floating rates
Most transparent mortgage package – SIBOR/SOR-pegged floating rates

Contact us today for more information and sharing today! We will be glad to assist you in guiding you more about Home Mortgage rates!

22/07/2020

More Home Owners Looking To Refinance Their Mortgages As Interest Rates Fall

Due to the coronavirus pandemic, the Singapore Interbank Offered Rate (SIBOR) has been falling.

This could be a good time to refinance your home and it could potentially help you save a fair amount of money.

As a general rule of thumb, floating rate loans are good in a declining interest rate environment, while fixed rate loans are more suited for the opposite.

If you are interested in refinancing your mortgage, do reach out to us and we will be more than happy to provide you with more information and show you what your options are.

11/07/2020

SIBOR Has Dipped Below 0.50% - Get the BEST Rates today!
Refinance At your Home Loan from 1.08%*

11/07/2020

LOWEST Home Loan FIXED Rate from 1.3%!
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09/07/2020

https://www.straitstimes.com/singapore/housing/hdb-resale-prices-rise-marginally-in-q2-amid-covid-19-outbreak-flash-estimates?fbclid=IwAR1IDo8KE79jObnYkoIlrCjvrGcVnPDiF_u9h975XfBauEYkMkCgZQ070x0

SINGAPORE - Housing Board resale prices increased marginally in the second quarter of 2020 amid the Covid-19 break, compared with the first quarter of the year.. Read more at straitstimes.com.