Brokers and loan specialists are trained in the art of financing for a reason. They help deal with financial problems that are otherwise difficult for the average person. Put your trust in a certified broker and you can expect positive results!
Understanding the fundamentals of finance can be difficult, but it isn’t impossible. Try to get on the same level of understanding with your local mortgage broker in Singapore. Learn the 6 basic services of a broker!
For the purchase of a new property, the value indicated by the bank and the price of purchase should be exactly the same. If these two don’t match, you are only granted a maximum home loan based on the lower value.
As for refinancing, the indicated value should be of greater importance as it will determine your refinance eligibility. At least 20% of equity in your property should be ensured before you can refinance your home loan.
Each bank has individual guidelines for commercial property loans. The classification of the commercial property should be the determiner. A commercial property can easily be separated into fully commercial or quasi-commercial.
There are three main factors of an equity housing loan.
Firstly, there’s the market value of property. This is essentially the bank indicated value of the property.
Secondly, you have the remaining house loan. This is your principal outstanding housing loan at the extent of applying for a term loan.
Lastly, there’s the amount of CPF usage plus accumulated interest over the years. This refers to the down payment of the property during the point of purchase, accrued interest over the years, and monthly installment amount if CPF is used.
This is also known as an In-principle approval (IPA), which is an informal application to a bank to secure a housing loan without formal submission of Option to purchase (OTP). This doesn’t necessarily pertain to a formal offer of a housing loan from a bank, but rather serves as a confirmation of your maximum housing eligibility.
A bridging loan is useful for a transaction where you are selling your existing property and buying a new one at the same time. This is involved when the cash proceeds are not realized in time for down payment required.
Interest rate analysis
Interest rate packages are best used for current and future home loan requirements. There’s a general guideline in the advisory process the includes the purpose of property, debt obligations, future income expectations, and anticipations of increases.
Now that you’ve understood the basic services of a mortgage broker or house loan company, prepare yourself for the future! Dollar Back Mortgage is the best housing loan in Singapore that offers a variety of options for your house loan needs. As a private home loan company in Singapore, it’s our duty to lead our clients to the right path.
