The Loan Dictionary

There are four categories of real estate loans available today; Refinance, Private, HDB, and Commercial Real Estate Loans.

Refinancing your home loan can save you many thousands of dollars on interest costs over the life of your loan. A 2% savings over a 3 year period on a 1m property can easily save you $20,000. Refinancing options are available for both private home loans as well as HDB loans.

The criteria for refinancing these two types of loans can vary considerably, so be sure to check with your lender or financing specialist to determine what their requirements for your particular situation are, and if refinancing is a feasible and desirable option for you.

The following is an example of the potential saving for a condo buyer in Singapore who opts to refinance his loan.

On a home loan with an outstanding balance of $800,000, an interest rate reduction of just 1% would yield the following savings:

Statistics indicate that a Singapore condo dweller’s average monthly household income is around $11,500.

This roughly translates to an annual income of $138,000 and a savings of $35,610.87 is around 26% of your household income. This is the money that you could be using RIGHT NOW to pay other bills, purchase a new automobile, or even pay down your current loan balance.

Private housing loans are available today, and the financial climate in Singapore is extremely favorable for purchasing a home or condo with a private loan. Interest rates are very low, which means you can get tremendous value for your home buying dollar. These loans are particularly appropriate for non- citizens or people whose income exceeds the maximum income limits for HDB financing.

Private housing loan institutions offer a variety of loans types, and are generally more flexible than government regulated HDB loans in Singapore. There are a multitude of mortgage companies that offer private loan packages. You can contact your realtor or financing specialist to determine which of these companies would be most appropriate for your particular situation.

A very popular type of loan in Singapore, is the HDB loan. HDB stands for Housing and Development Board. The HDB is a government agency created in 1960 by the Singaporean government, ministry of National Development, to help people become able to afford to buy a home or condo in Singapore. These loans have some specific requirements, including income & citizenship requirements. If you qualify, this is typically the most cost-effective and desirable method of securing a home loan in Singapore. More than 80% of Singaporeans live in homes or condos purchased with HDB loans.

Compare Singapore Home loan to grab a low interest rate home loan according to your expectations. Besides, if you Compare Singapore Home loan you can reduce your burden considerably. The author has immense exposure in the Singapore home loan arena and has written many articles regarding how to Compare Singapore Home loan in the past.

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