After choosing your ideal home, it’s important to get the correct mortgage for your property. By choosing the right mortgage loan, thousands of dollars can be saved over the long run.
There are plenty of products from banks with different interests rates ,features and fees being offered to the public. Below are some ways to narrow down which loan is suitable for you.

Purpose and requirements of the loan

  • Consider the purpose of the loan. If you are a purchaser planning to stay in your property, you would require a home loan while investors would look more at a residential investment loan.
  • Next step is to decide what type of loan would be best to suit your needs – Fixed or Variable rate ? Flexibility to pay off more than your scheduled payments or offset your mortgage agaiMorrtgage-Loannst your income earnings monthly thus save on interest expense.
  • Plan how long do you intend to repay the loan.

Loan Features

  • Understand the features of several loan products. Bearing in mind that many banks will also allow you to split your loan amount over more than one type of loan to meet your needs. Walk in to a few banks (OCBC, DBS, UOB, Standard Chartered, HSBC, etc) and talk to the mortgage bankers to find out more about the mortgage loans packages.

Long term expenses

Prioritize your preferred features in a loan and calculate the long term costs of the options that you have considered. Will you save more if you choose a Fixed over a Variable loan even though fixed interest rate is slightly higher? It all depends on how well disciplined you are with budgeting, family lifestyle and future plans. Plan well ahead in order to forecast as accurately as possible your ability and/or limitations to repay your loan.

Word of Advice : A mortgage is a guarantee or pledge to repay the loan you take to buy real estate.  The word mortgage is a French Law term meaning “death contract“, meaning that the pledge ends (dies) when either the obligation is fulfilled or the property is taken through foreclosure. Please keep in mind when reading the terms and conditions of the mortgage you are entering!