Bad Credit – Mortgage Loans Worst Enemy

No matter how low Singapore mortgage rates are, it will have no meaning to you if you have bad credit. This is even when you make an income that is comparable to a professional. Having adverse personal credit can mean that most of your mortgage loan applications getting rejected, while other lender might only be willing to offer you a mortgage loan at high interest rates to offset the risk they take on you.

The thing is if you have bad credit, you will most likely already be aware of it. While you may think that nobody will find out about your personal credit history if you do not declare it to the bank, you can bet that the lender will be able to access your personal credit information easily. This means that you should always property and fully inform the lender on your personal credit issues that you think might affect your mortgage loan application. To take a look at your own personal credit record, you can obtain it from the Singapore credit bureau.

To attain a credit record that banks and financial institutions will drool over, the concept is easy. Pay all your bills promptly. But of course, if you are reading this, you probably have some credit issues that you worry can cause your Singapore mortgage loan application to fall through. read more

Singapore Mortgage Rates Making Home Mortgage Loans Very Attractive

The majority of Singapore mortgage loans that are accepted and disbursed are made up of Singapore mortgage rates that are benchmarked to the Singapore Interbank Offer Rate (SIBOR) and the Swap Offer Rate (SOR). With SIBOR and SOR rates plunging to record lows, 2011 is definitely a year that will be referenced to over and over again the coming years.

So while financing property purchases, refinancing existing properties and Singapore home equity loans are becoming more affordable due to low Singapore mortgage rates, it is also attracting foreign investors to buy properties in Singapore. This is both due to low mortgage interest rates and the strong Singapore dollar. This can effectively drive up prices of the already highly priced real estate market.

Even though you may now think that you can finally afford that dream pent house because of the low Singapore mortgage interest rates, you have to be mindful of the dangers to your personal finances when mortgage rates go up. In other words, if you can just about afford your mortgage loan now at low interest rates, you could be in for a shock when mortgage rates start to rise. SIBOR rates at record low and SOR rates in the negative region are unprecedented events. You have to be aware that SIBOR hit over 9 % in the 1990s. read more

Home Equity Loan To Cash Out Your Property Mortgage

Every one can run into tight cash flow situations every once in a while. It may be because of the lure on better yields on other investments, working capital crunch for their businesses, or even some unique personal issues that require a huge financial injection.

It is perhaps a little surprising that there is still a segment of home owners who are not aware that there is such a thing as a home equity loan. A home equity loan allows you to take up a term loan against property at existing Singapore mortgage rates. This means that a loan structured in this way will allow you to enjoy low interest rates if the existing mortgage rates are much lower than personal loan rate, business loan rates, car loan rates, etc.

The loan amount that you can qualify for depends on the property value and your personal income. Needless to say, you cannot expect to obtain a $800,000 term loan if your property value is $800,000. And you also cannot expect a loan quantum that your personal income cannot support. Lending banks are the best in assessing risks. It is very unlikely that a home equity loan can be offered if they have determined that you cannot afford to promptly service it over the years. read more

Special Promotional Singapore Mortgage Loans – Ignore At You Own Costs

A considerable number of new condominiums and HDB flats are coming up in the next few years as widely reported in the newspapers and news channels. This inevitably means that even now when we see condominium showrooms on every corner that we turn, showrooms for showcasing and new launches will become an even more common sight.

And with mass media broadcasting the possibility of a property supply overflow, you can bet that developers will be pulling out all stops to make sure that their properties are not one of those that are left out from prospective buyers. Developers after all spend hundreds of millions of dollars to buy land and build their luxury condominiums on. Failure to sell enough units at good prices can mean loss of sales, resulting to cash flow crunch, even worse if the property values depreciate.

With the property rush, it present banks huge opportunities to make a lot of mortgage loan transactions. Developers require banks’ financial support to build up the properties. On the other hand, banks also want the support of the developers for their mortgage loans. Together with the forecasted slowdown, this is a combination that can benefit the property buyer. read more