Be assured that our mortgage rates are updated daily as we get them from here.
In the current interest rates climate where SIBOR and SOR are hovering around their all all-time lows, it is easy to forget SIBOR and SOR have historically been considerably higher than what it is now. This can be especially misleading to first time home buyers who could be aware of these 2 benchmark rates for the first time.
Mortgage loan deals that start with low interest spread can look very attractive. However, do not forget that the interest rate spread for the later and thereafter years can be much more important than interest rates in the first few initial years. This means that although a mortgage loan can appear very tempting with 0.50% spread in the first year, be sure not to neglect looking at the interest spread in the later years. This is because a mortgage loan is very often a long term commitment that property buyers stretch over 20 to 30 years.
Also note that your own calculation for the affordability of the mortgage loan installments will vary from year to year depending on the details of the home loan that you take up. Monthly installments for the first year can be very different from the second year and onwards. So when you make your own financial analysis, do not make the mistake of only taking into consideration of the installments for the first year.
Buying properties involve huge funds. You can either close the transaction fully in cash or a combination of cash and a Singapore mortgage loan. You can find resources all over the internet on 100% loan to value mortgage loans. But that does not happen in Singapore.
If you are the sole bread winner of the family, mortgage insurance is definitely something that you should think about. Because if a mishap happen which results in the loss of your life or permanent disability that prevents you from working, you don’t want your family to be burdened with the huge mortgage loan debt.
Even though a proper mortgage insurance plan has huge benefits in specific situations, most home buyers do not sign up for one because of certain myths. Here 2 of the most common myths.
When comparing between 2 Singapore mortgage loan offers, the one with the lower mortgage rate will always be chosen if everything else being equal. However it is rarely the case where you get to decide on a mortgage solely based on the interest rates. Although mortgage loan features can sometimes distract the home buyer or owner from the home loan rates, they can be a crucial factor determining your decision.
Here are the most common mortgage loan features that you will run into when choosing and comparing between mortgage loans in Singapore.
Free fire insurance.
You might have found the dream house that you are looking for. And you will be able to afford it with the cash you have on hand and the proceeds that you will get from selling your existing property. The catch is that the cash flow from your new property purchase and sales for your existing home does not add up.
The scenario is simple. You need to make payment for the new property before you sell your current property. But you will not have enough funds to complete the purchase transaction before selling. If you were to sell your current property to generate the funds to make your new purchase, you can end up without a roof over your head for a few months.
How do you get around this scenario?