Tips for Scoring the Best Bank Home Loan in Singapore

Finding the best bank home loan in Singapore can be pretty challenging, especially if you’re not from the city-state and don’t have any previous business with local banks. However, by following these tips, you can ensure that you make the right decision and get the best deal possible:

1. Look for the most competitive interest rates

This one is pretty obvious and you should know that the best bank home loan in Singapore will have an interest rate that’s lower than the market average. Some banks may offer rates that are as low as 1% and others may be slightly higher.

2. Get a fixed interest rate

Many banks offer a fixed interest rate which allows you to lock in the figure for 12 to 18 months, and this will help you save more money because you won’t have to worry about yearly changes in interest rates. This can also give you peace of mind that the interest rates aren’t going to change during this period, as it may be less risky for banks and can help boost their sales as well.

3. Get a home loan with a lower amount

One of the most important factors to consider is the amount you’re borrowing for. If you’re borrowing more than 20% of the purchase price, it can be difficult to pay off the loan-renewing each year because it can easily become more expensive than paying monthly instalments. However, prices vary significantly with housing rates in Singapore and some might offer discounts if you’re able to get a loan for less than 20% of another property’s sales price.

4. Choose the right type of loan

There are three ways to finance your home: a purchase mortgage, an importer’s mortgage or a resale mortgage. Each has its own benefits, so it’s important to know what you want before you go shopping around.

5. Shop around for different banks

It can be difficult finding the best bank home loan in Singapore if you don’t know how the process works, so it’s always recommended that you get as much information as possible from the banks that you contact and compare their offers and services. This way, you can make sure that you get the best deal out of your personal situation and your budget.

6. Make the most of the government’s benefits

Another factor to consider is the Singapore Government’s Home Ownership Scheme. This scheme allows Singaporeans to purchase and own two homes through the Central Provident Fund (CPF). The scheme is especially helpful if you’re looking to buy a new home, and it will also allow you to receive another CPF -Shield Saver when you sell your second home.

7. Focus on attractive properties

An attractive property means more than just stylish furnishings and fancy designs. It’s important that you consider all aspects of the property, including its location, size and condition, before making any decisions.

8. Get a home loan from a reputable bank

It’s no secret that banks like Standard Chartered and DBS are extremely competitive when it comes to securing bank home loans and will typically beat their competition in order to get the deal done. It’s also important that you check out a bank’s reputation for value for money, which is why it’s recommended that you research all of the banks in Singapore and take at least two trips to different branches before signing your contract.

9. Visit a bank branch before signing a contract

Before you sign any documents, allow yourself enough time to inspect the property and ensure that everything is in order with the property management company and your bank.

10. Be careful with your credit score

It’s important that you know exactly what your current credit score is and make sure that it is as high as possible before finalising any deals. The higher your credit score, the lower the interest rates will be, so it’s important to remember this when looking for a home loan.

When you’re looking for a bank home loan in Singapore, it’s essential that you make all of the right moves and consider all of the advice above. It’s also important that you don’t rush into anything, which means carefully researching your options and making sure that you get everything straight before signing any contracts.