Mortgage Rates in Singapore

Mortgage Rates in Singapore


Singapore is the leading country dubbed as the most expensive to live in. From clothing, food, transportation to personal space like housing, is quite expensive for an ordinary working class. Having a personal space or renting one in the city still requires you a big lump of money which might be more than what your monthly salary is.   If you have a six zeros savings or owns a couple of buildings or land, then, good for you. Nonetheless, you might want to explore getting a bank housing loan.


For a beginner, the question would be: How do I get started? Who and where should I go? This naturally happens especially if you have zero background on housing loans and mortgage rates in Singapore.


Applying for a Housing Loan

Banks or financial institutions don’t usually let you borrow money just because you need it. Of course, there are standard operation protocols (SOP) to follow. First, they might ask you how much you can afford. How much do you earn annually? Do you have any assets with you for collateral? Aside from the housing and banking loan jargons like mortgage rates, mortgage rates for refinance, that might really confuse you, these are the questions you might want to think about before you apply for a bank housing loan.


But if you were set already to get that dream house, then, I think you have already thought over [perhaps, a million times] the above scenario.


In Singapore you can have two options to avail a housing loan: HDB (Housing Development Board) loan or through a bank. An HDB concessionary loan is often the cheapest housing option you can get in Singapore which has current mortgage interest rates of 2.6% (hdb.gov.sg. 2017). Compared to bank loans, it varies depending on the SIBOR/SOR rates (Singapore Interbank Offered Rate/Singapore Swap Offer Rate) but mortgage interest rates ranges from 2.29 – 2.69 % and will eventually increase after 3 years. Other that these, HDB and banks has a lot of other requirements that you must comply. You can check the eligibility requirements and guidelines in their websites for more information.



Should you be in a bind with your bank loan, refinancing is one of the options you might consider. When you refinance your mortgage, it means that you are trading your old loan for a new one with a new mortgage rate and manageable term. You might want to do a competitive selection process of banks to get a best deal on your mortgage.



If still in doubt, do not hesitate to consult a professional. A lot of mortgage expert companies in Singapore offer different mortgage rate packages. They have access to over 50 home loan packages from all the banks in Singapore and can give you the best deal available perfect for your budget. Aside from that, mortgage experts are professionals and they even provide advices on property regulations. How do I connect with them? The consultancy process is just very simple. You can access them online or you may visit any of their Singapore branches. Grab it now! Your dream home is just a click away.