A large number of properties in Singapore are developed by the Housing Development Board (HDB) and are constructed on leasehold land for a period of 99 years. After the lease period is over, the property may be redeveloped, and people living in the property have to find new homes. So some people in Singapore prefer to invest in private property, since it remains in the family for generations, till it is sold to others. However, private property is significantly more expensive compared to HDB property, so many investors have to take a bank loan to fund the purchase of the property. To reduce the interest expense he pays on the loan, the property owner would like to find out the top bank loan private property in Singapore. Most of the major banks are offering loans for property purchases. Additionally, there are other loans offers that only mortgage consultants are aware of. Some of the factors affecting the loan interest rate, terms are discussed.
There is always some risk in purchasing a property that is under construction, since there may be delays in finishing the construction due to lack of funds or other reasons. So banks are offering lower rates for investors who are purchasing an under-construction property. Property buyers purchasing Executive Condominiums (EC), condos, and other completed properties can choose between loans where the interest rate is fixed or floating. The interest rate for the completed properties is usually higher since these properties are more expensive compared to the under-construction property due to the lower risk.
The interest rates are fluctuating depending on the economic conditions, so banks are offering loans with fixed interest rates as well as floating interest rates which vary according to benchmark rates like the SORA. While it is usually easier for the lender to predict the economic conditions in the next few years, it is more difficult to predict what will happen after 3 years. So the bank is offering different loan deals, in which the interest rate for the first and in some cases a second year is fixed, while the interest rate for the third and later years is floating, varying depending on market conditions, local economy.
Often the banks are listing their loan terms on their website, or provide the details to customers who request information. To increase the number of loans, which are a major source of profit, the banks are offering loans with better terms, lower interest for a limited time period. These loans are often marketed through mortgage consultants who may list them on their website, or inform relevant clients. Often these promotional loans have a very low-interest rate for short-term loans of duration less than three years, though the interest rate is higher for four to six years.
To increase the number of loans, the banks often have several promotional offers for property buyers. A discount of up to $800 is offered on legal fees. Additionally, the borrower can often avail of shopping vouchers of value $3000 or more and save some money on their expenses.