Long Term Housing Financing Info For Buying Residential Property in Singapore
Buying a residential property is a long-term financial commitment; it should not be a burden with debt. Hence, you must look into the housing loan planning seriously, to assess your budget carefully before you start looking for an ideal home to buy.
You should first work out the following:
- What can you afford? You need to look at your current household income and available savings. Any current expenses and debt obligation? Explore the loan amount you are eligible for based on your age, loan tenure and income.
- What do you need to pay? Buying a residential property in Singapore involves making some upfront payments, as well as monthly housing loan instalments. Not all the amount you can utilise your CPF savings.
We compile all the information you need and have put together some pointers to help you with your housing loan planning when it comes to buying a residential property in Singapore:
Whether you are planning to buy a private or public residential property, upgrade to a bigger property or right-size to a smaller property, or thinking of refinancing your existing home mortgage, let us help you to determine the right loan package with attractive interest rates that tailored to your housing finance needs.
Additional Tips On Housing Financing
Do not over-stretch your budget
It may be tempting to borrow as much as possible when the initial cost is manageable, but you could get into financial difficulties if you can’t keep up your repayments.
Live within your means and don’t over-stretch your budget.
Budget for increased costs in future
Do not borrow the maximum you can afford now. Give some allowance for interest rates rise or CPF contribution rate changes in future. Contributions to CPF Ordinary Account decreases as you age. You may need to use more cash for future instalments.
Only borrow what you need and can afford to pay back monthly based on your income after setting aside enough funds for your monthly living expenses as well as emergencies.