Singapore is famous worldwide for many things, the country’s particularly generous public housing system among them. While many Singaporeans live happily in publicly owned housing units, purchasing a home can be even more appealing.
Because Singapore is a small, densely populated nation, real estate tends to be quite pricey, however. Finding the best way of financing a home purchase can turn an otherwise unrealistic option into an entirely practical one.
When looking for a home loan in Singapore, a few factors will have the most impact on the terms and financial details of each offer. Understanding what these are and how they work will always be helpful.
Lenders in Singapore Focus on a Few Issues the Most
While home ownership rates in Singapore are not particularly high compared to averages among similarly well-developed countries, purchasing a house can easily be the best way to move forward. Home owners enjoy independence that people who reside in public housing do not, along with perks like appreciating property values.
The single most effective way to tilt the balance even more in favor of buying a home will always be to identify and qualify for an especially appropriate loan. Banks and other lenders in Singapore tend to look at issues like the following when deciding whether to approve applications and on what terms:
- Property type and condition. A brand-new home with no market history behind it will always pose something of a risk to a lender who accepts it as collateral. On the other hand, an especially old home that is in need of repairs can be every bit as unattractive. Although banks will typically allow qualified borrowers to finance the purchase of any home they might desire, the associated terms can vary depending upon such issues.
- Credit history and financial situation. Borrowers who have had trouble keeping up with loans in the past can expect to be viewed with more skepticism by lenders than other applicants. Having significant savings and a healthy amount of income will make a borrower seem like less of a risk.
Purchasing a Home Can Easily be Realistic
Even though nearly eight in ten Singaporeans live in public housing units today, buying a home can easily be a superior alternative. In many cases, it will be factors that impact the terms at which financing can be obtained that make the most difference, overall.