If you dream of your own home or want to invest in a property, this 2017 is an exceptionally good year to realize that purpose. This, due to the historical drop in the interest rate – which remains around 2.5% – which makes this moment more than opportune to ask for a mortgage loan.
If you want to take advantage of the current conditions to make your wish come true, take into account the following tips to make the operation a success. With the best interest rate refinance home loan in Singapore you can have the solutions.
Tips for requesting a mortgage
Before taking the step, it is important that you consider all the variables. Remember that this is an obligation that you should not take lightly, because it is a debt that will accompany you for a long time. What will you do if your financial situation changes tomorrow?
It has a pre-approval
It is essential to know what is the amount that the bank will provide, to know what price range to look for and if the available real estate offer meets your expectations.
There are countless variables among financial entities and their products. Therefore, never stay with the first option. Check all the available offer and what is the best option for you, analyzing aspects such as interest rate, dividend value and total cost of credit. Above all, thinking that banks are again offering up to 90 percent financing in particular cases.
In an interview with Radio the manager gave some tips to focus on when quoting, which are cited below:
- Know the type of interest rate of the operation. You can be fixed, variable or mixed. Because they are low today, look for the first option.
- Ask about the value of Operational Expenses, which is an amount that the client must pay.
- Inquire the value of Mandatory Insurance, because they affect the final amount of the dividend.
- Know what additional products should be contracted in the banking institution (current account, cards and / or credit lines), since they affect the cost of the operation.
- Know if there are reimbursements of expenses. There are institutions that return part of the operational expenses, which undoubtedly is a relief for the buyer.
- Find out if there are institutions that deliver bonuses for allocation of Housing Subsidy.
- Know what the CAE will be. This is the total cost of a loan for each year and includes the period of the loan, the interest rate and the costs associated with the loan.
Maintain good financial behavior
The bank will analyze the history of your payments in the two years prior to your request , so maintaining an irreproachable financial behavior, with punctual payments, will be your best letter of presentation when requesting a mortgage loan.
Before submitting your application, be sure to close the most credit cards and not have debts for consumer loans. All this could mean a lower loan than the one you requested.Following these tips, there is nothing to do but to urge you to take advantage of the moment and look for the most convenient banking product, so that you can fulfill your dream of owning once.