A private housing loan in Singapore refers to a mortgage provided by private financial institutions. Examples of these are banks, as opposed to government schemes such as HDB loans. These loans are popular among buyers of private properties like condominiums, landed homes, or executive condominiums that have passed their Minimum Occupation Period (MOP).
Key Features of Private Housing Loans in Singapore
Loan Flexibility
Private home financing offers a variety of loan packages tailored to suit individual financial situations.
Interest Rate Options
Borrowers can choose between fixed or floating interest rates, often linked to benchmarks like Board Rate, Bank’s Fixed Deposit rate or SORA.
Eligibility Criteria
Private mortgage loans are available to Singaporeans and foreigners, though specific eligibility criteria apply, such as credit score and debt ratio.
Benefits of a Private Mortgage Loan
Here are the benefits of private mortgage loan:
Higher Loan Quantum
Private home loans allow you to borrow up to 75% of the property value, depending on your financial standing and the lender’s term.
Flexibility in Loan Tenure
You can select loan tenures ranging from 5 to 35 years, providing flexible repayment options to secure the best home loan in Singapore for your needs.
Things to Consider Before Applying
Fluctuating Interest Rates
Opting for a floating rate means your monthly payments can vary based on market conditions.
Eligibility and Documentation
Private home financing requires thorough documentation and may have stringent income requirements.