对于一般国外投资者而言，简单的说他们只有两种投资选择， 那就是全岛范围的私人公寓和圣淘沙的有地住宅。 而外国人不能购买的房子包括了建屋局组屋 （HDB）， 闲置的住宅用地， 有地住宅， 根据该规划方案不属于审批性公寓楼，且在地基建设中的有地房产。

然而计划买房的另一个需要探讨的问题又来了， 那就是外国人在新加坡买房子需要准备多少首付呢？外国人在新加坡申请银行房贷的最高额度为75%， 打个比方银行贷款75%， 那么就要付首付25%。除了首付之外，外国人在新加坡买房还需要支付20%的印花税。

那么在新加坡买房申请贷款会不会很麻烦呢？ 需要提交什么文件呢？ 银行通常要求客户提交的文件包括：-

1. 身份证/护照正本和副本
2. 收入证明 （最近3个月工资单以及银行结单）
3. 最新所得税评估
4. 房屋预售合同
5. 购买合同
6. 住房贷款申请表 （填写完整并签字）

The post 外国人在新加坡买房 first appeared on Best Mortgage Singapore.

若一对夫妻想在新加坡购买政府组屋， 则必须两人都持有永久居民证至少3年，便可以在公开市场上购买二手组屋，并且在购买组屋后的半年内将国外的私人房地产转售给他人（不能在国外持有任何房产）。有些夫妻在购买房屋前会考虑到若将来有了孩子，或者经济条件再好一些的话，可能会想换大间一点的屋子，那么现在到底该不该买呢？ 其实只要在购买后住满5年便可以再将屋子转售。 还有一点需要特别注意的条例就是，在购买房屋后， 该房屋只能用来居住， 不能整间出租！ 这一点非常重要！

另外， 相信大家还抱着一个疑问，那就是PR能不能以母女，母子，父女，父子关系购买政府组屋呢？ 答案是可以的， 但前提是必须两者都获得PR超过3年， 并且孩子已年满21岁。 除此之外， 有些未婚的PR年轻人会想与自己的兄弟姐妹联名购买二手组屋，其实是可以尝试申请，但必须要有足够的理由才有可能会获准以兄弟姐妹的关系购买。 这是为了避免未来双方在婚后以另一半的名义再购买屋子并逃税的问题。

The post PR在新加坡购买政府组屋的条件 first appeared on Best Mortgage Singapore.

若您还在为了不知道该选择固定利率还是浮动利率而发愁， 那么希望您看到的这篇文章能帮助您解决烦恼。 固定利率顾名思义就是固定了是跟着那被定下的利率不会跟着市场利率变动而改变， 而浮动利率则会跟着市场的利率变动而跟着上升或下滑。

固定利率的好处与坏处

一般性格较为保守的人都会选择固定利率， 原因是它比较稳定， 顾客不需要担心市场利率上升时需要偿还给银行的款项会跟着上升， 反而只需要固定每个月偿还一开始订下的月供款项即可。 这也能方便顾客计算出偿还的款项内有总共有多少是本金， 多少是利息。当然， 固定利率也有相对的坏处， 那就是当市场利率下滑时， 相比之下您所需支付的款项就会比浮动利率来得高。 第二点， 银行所推出的固定利率配套会比浮动利率来得高，原因为了保障自己在市场利率上升时不会亏损太多。

浮动利率的好处与坏处

一般上能接受风险的人都会选择浮动利率， 原因是它一开始会比固定利率来得更低一些。 有些人则会常关注时事新闻， 他们看准了某些时事的发生或许有机会影响到市场的利率下滑， 所以这个时候他们会选择浮动利率，当市场利率下滑时， 顾客所需支付的款项变相对较低。 若市场利率因经济动荡而持续低迷， 那么顾客所需偿还的款项变比一开始预测需偿还的款项来得更低， 这还能为顾客省下了部分利息。 当然， 浮动利率的坏处就是我们无法准确的预测市场利率在未来会上升还是下滑， 所以说浮动利率较为不稳定。 当市场利率上升时， 顾客所需支付的款项变会跟着上升。 这使顾客无法准确的预算出所需支付的利息总数为多少。

The post 固定利率和浮动利率的好处与坏处 first appeared on Best Mortgage Singapore.

恭喜您选定了您的梦想家园！但选定并未结束，除非您非常非常富有，否则您将需要申请房屋贷款。现在，让我们来了解如何选择适合您的房屋贷款配套吧！ 首先，您需要先知道市场上有哪项房屋贷款能供您选择。在新加坡，您可选择政府组屋优惠贷款（HDB Loan）或者向金融机构申请贷款（bank loan）

政府组屋优惠贷款与银行贷款之间的差别

与名字一样，政府组屋优惠贷款只适与购买政府组屋的人。您必须符合某些条件才能拿到政府组屋优惠贷款。至少一位买家需是新加坡公民并且平均家庭月入不超过$12,000。 政府组屋优惠贷款适合于较少流动现金的买家，这是因为若拿到此项贷款，您只需付较少的头期款（买价的10%），然而银行贷款则需付较高的头期款（买价的25%）。您可选择使用现金或公积金的普通户口（CPF Ordinary Account）来支付政府组屋优惠贷款的头期款。至于银行贷款的25%头期款，您需付5%的现金，而剩下的20%可选择使用现金或公积金。 另一项区别点在于LTV（Loan-To-Value Limit），它代表您能贷款的最高值。政府组屋优惠贷款最高能贷款产业价值的90%，剩余的10%可选择付现金或是用公积金付款。然而银行贷款最高只能贷款产业价值的75%。 这也表明政府组屋优惠贷款倾向于需付更高的利息。它的利息被钉在比公积金普通户口的利息高于0.1%，正是2.6%，而这个巴仙率也以保持了好几年。

不同的银行贷款配套 银行贷款适用于政府组屋以及私人产业。以下有四种不同配套的房屋贷款，分别为：固定利率（fixed rate），浮动利率（floating rate），定期存款挂钩利率（fixed deposit linked rate），现行利率（board rate）

固定利率房屋贷款配套的利息是固定性的，并且固定一段时间，通常为1-2年。由于利息是固定性的，所以此配套较为稳定，并且不必担心每月还的款项会有浮动。然而，此配套的利息较高，原因为银行需要承担市场利率上升至高于银行所定的利率的风险。

浮动利率的利息被钉为SIBOR（Singapore Interbank Offer Rate）或SOR(Swap Offer Rate). SIBOR的算法是以1M SIBOR或3M SIBOR为钉与加上另外的利率。此利率较为易变因它的变动取决于银行定的钉。比如，若您的配套为1-month SIBOR，利率将每月更动。SIBOR和SOR都是公开性的，因此较为透明化，顾客不需担心被银行收取不合理的利息。

定期存款挂钩率的利息与银行的定期存款利息钉为一起。与浮动利率比较，此利率更不易变。 另一项需作为考虑的因素为银行全权控制与决定定期存款的利率，然而银行却控制不了SIBOR的利率。这表示您所付的利息更动取决于银行，并且无外界干涉/检查。然而，银行不会随意增加利率，因为这表示他们也需要付更多利息给定期存款的顾客。

现行利率的利率全权由银行决定。银行倾向于每一季更换一次利率，比SIBOR和SOR更为不易变些。然而，此利率有些陈旧/被废弃，因为此利率不那么透明化，而利息也较为高。此利率不公开给群众，因此银行可以随时更换利息，无需透过外界检查/查问。

哪项选择更为适合您呢？ 政府组屋优惠贷款较适合工作经验尚浅的年轻夫妇/情侣，因为您可以贷款更高的款项并付较少的头期款。至于银行贷款，固定利率较适合规避风险的顾客，若担心要冒利息增长的风险，可选择此配套。然而，若您可承受变动，按长远来看，浮动利率配套或许能帮助您剩下更多钱。

The post 政府组屋优惠贷款与银行贷款的差别 first appeared on Best Mortgage Singapore.

It is important for you to first know what type of home loans are there available for you to choose from in the market. In Singapore, you can either get a HDB Concessionary Loan (HDB Loan) or a loan from financial institutions (bank loans).

Comparing HDB Loan and Bank Loans

As the name suggest, HDB loans is only available to those buying HDB flats. You have to fulfil certain criteria to be able to secure a HDB loan. At least 1 buyer have to be a Singapore citizen and your average gross monthly household income for families cannot exceed $12,000.

HDB loans are ideal for home buyers who do not have much cash on hand. This is because HDB loans require you to pay a smaller amount of downpayment (10% of your purchase price) as compared to bank loans (25% of purchase price). On top of that, you can pay the downpayment for HDB loan fully with either cash or your CPF Ordinary Account. For bank loans, you have to pay 5% in cash and the remaining 20% with CPF or in cash.

You can also borrow more from a HDB loan (90% LTV) as compared to a bank loan (75% LTV). LTV stands for Loan-To-Value Limit and it is the amount you can borrow to finance your home. A LTV ratio of 90% means that you can borrow up to 90% of your property value while the remaining 10% can be paid in cash or through you CPF.

That being said, HDB loans tend to have higher interest rates as compared to bank loans. The interest rate for HDB loans is pegged at 0.1% more the CPF OA interest rate. It is currently at 2.6% and has remained at this rate for many years.

Different types of bank loans

Bank loans can be used for both HDB flats and private property. There are 4 main categories of bank loans: Fixed Rate, Floating Rate, Fixed Deposit Linked Rate and, Board Rate.

A fixed rate home loan package is one where the interests rates are fixed and kept the same throughout a period of time, usually 1-2 years. You have stability as there are no fluctuations to the interest rate during this period and your monthly repayment does not change. However, fixed interest rates are higher than the other rates as banks factor in the risk that market rates increase beyond the rate they give you during this period of time.

A floating rate is one where the interest rate is pegged to the SIBOR (Singapore Interbank Offer Rate) or SOR (Swap Offer rate). You can read up more on SIBOR rates here. The interest rate is usually calculated using a 1M SIBOR or 3M SIBOR as a peg and adding a spread on top of it. These rates are usually more volatile as they will change depending on the peg that the bank set. For example, if you have 1-month SIBOR, your interest rate will change every month. The SIBOR and SOR rates are also publicly available, hence there is more transparency and customers do not have to worry about being charged an unreasonably determined rate set by the banks.

A fixed deposit linked rate are interest rates pegged to the bank’s fixed deposit interest rates. You can find more information here. Compared to floating home loan rates, FD rates are not as volatile. Another factor to consider is that banks have full control in determining the FD rates whereas no bank can control the SIBOR rate. This means that any changes to the interest rate you pay is done entirely at the discretion of the bank, without any external checks. However, banks are unlikely to increase the FD rate as it would mean that they have to pay more interest.

A board rate are interest rates completely determined by the banks. Banks tend to change their rates quarterly, making it less volatile than SIBOR or SOR pegged rates. However, they are much obsolete now because there is little transparency in the rates and the rates are often much higher. The way of determining the board interest rate is not disclosed to the public and this means that banks can change the interest rate that you anytime they want, without any external checks and balances!

Which type of home loan package is best for you?

It depends on what kind of person you are and your lifestyle.

A HDB loan is better for young couples who are just starting out in their career as you can borrow more money and have to pay a smaller downpayment amount. For banks loans, fixed rates are better for people who are risk adverse and wants to protect themselves against any further increase in their monthly loan repayment. However, if you are okay with some volatility, a floating home loan rate might actually help you save more money in the long run.

Still confused over which type of home loan to go for? Check out our comprehensive home loan comparison tool or contact us at +65 9845 9978 to book a free consultation with our experienced mortgage advisors!

The post Different types of home loan packages in Singapore first appeared on Best Mortgage Singapore.

SIBOR Home Loan Rate

SIBOR stands for the Singapore Interbank Offered Rate and is the interest rate at which banks use to borrow money from each other. This rate is derived daily from a comparison of interest rates from at least 12 banks in Singapore and published on Association of Banks in Singapore (ABS)’s website.

A SIBOR home loan rates usually comprises of two parts: the SIBOR rate and the bank’s spread. For example, it is usually expressed like this: 3M SIBOR (SIBOR Rate) + 0.5% (Bank’s spread).

The SIBOR rate is usually expressed in numbers like 1M SIBOR or 3M SIBOR to indicate how often the SIBOR rate is refreshed for your loan. If you have a 3M SIBOR rate, this means that the bank will check the SIBOR rate and update it every three months. If you have a 1M SIBOR rate, then your home loan interest rates will be refreshed every month.

The bank’s spread can be generally understood as the bank’s ‘surcharge’ on top of the SIBOR rate. The SIBOR rate will always stay constant regardless of whichever bank’s home loan package you’ve chosen. The bank’s spread will thus determine whether you have a low home loan rate or not.

Let’s look at an example of how a SIBOR home loan rate is calculated:

If your home loan interest rate = 3M SIBOR + 0.5%,

Assuming the 3M SIBOR rate is 1.8% and the bank’s spread is 0.5%, then the interest rate for your home loan would be 2.3%.

Fixed Deposit Home Loan Rate

Instead of being subjected to external market conditions, the fixed deposit home loan rate is pegged by the bank’s fixed deposit rate. It is what people commonly refer to as a “board rate” which means that the bank has full control over the interest rate and can raise it any point they want.

Similar to SIBOR home loan rates, it comprises of the bank’s fixed deposit rate and the bank’s spread. The bank’s fixed deposit rate usually have numbers next to them such as FHR9 and FHR18. The number represents the interest rate period. So FHR9 would refer to the bank’s 9 month fixed deposit rate (which would differ from the rate of other time periods).

You’re not alone in this!

Now that you better understand what the two different types of home loan mean, you can choose and decide which kind of home loans suits you best! You can use our free and comprehensive home loan comparison tool to look at the different loan packages available here.

However, you don’t have to make this decision all by yourself! Our mortgage experts at Best Mortgage Singapore can advise and help you make the best decision for yourself! So don’t hesitate to contact us for an enquiry today: +65 9845 9978

The post Understanding SIBOR Home Loans and Fixed Deposit Home Loans first appeared on Best Mortgage Singapore.

Total Debt Servicing Ratio (TDSR) is a framework implemented by the Monetary Authority of Singapore to safeguard borrowers against over-borrowing for property purchases. Basically, it limits the amount individuals can spend on monthly mortgage debt repayment, based on a percentage of their gross monthly income. Currently, the highest TDSR that financial institutions can grant is capped at 60% of gross income. This means that you housing loan repayment, after adding all your repayment obligations (student loans, credit card debts, car loans and etc) cannot exceed 60% of your income.

TDSR vs DSR and MSR?

TDSR may seem similar to the terms Debt Servicing Ratio (DSR) and Mortgage Servicing Ratio (MSR). We will explain how they are different.

MSR only takes into account your housing loan repayments. So a MSR of 30% means 30% of your monthly income can go into home loan repayments, regardless of what your other repayment obligations are.

Then we have the old standard, DSR. TDSR is much more restrictive than DSR as DSR does not factor in certain unsecured loans such as credit card debt.

So… how does this affect me?

#1 Property Investing becomes harder

If you already have an outstanding home loan, it’s unlikely you can take on another one without exceeding the 60% TDSR.

#2 You can’t borrow as much even without other debts

Home loans are subject to fluctuating interest rates. Hence, when you decide on a home loan, the bank implements a “stress test” to check if you can handle sudden rise in interests. This means that home buyers must be able to maintain a TDSR of 60% or under, even if interest rates were to rise to a certain amount. This will in turn affect the loan quantum that can be borrowed even though you do not have any other debts.

Currently, the stress test is standardised at 3.5% for residential property and 4.5% for commercial properties.

#3 If you have variable income, you get to borrow less

With the rise of the gig economy, there are more self-employed individuals than before. How does the TDSR apply to a self-employed individual?

Under the new TDSR framework, commissions, rental income or other variable sums are grouped under variable income. And financial institutions are to treat that variable income as though it is 30% less than it actually is.

Example: As a self-employed individual, you make $6500 on average a month. However, when calculating your TDSR, your income is only considered to be $4550, which would result in you having a much lower loan quantum.

#4 More paperwork!

When TDSR was first introduced, there was a significant increase in paperwork required to get a home loan. Banks would require all your financial statements including credit cards debts, student loans and even your gym memberships! If you have variable income, you also need proof of the commission and fees you get from your clients!

Want to save yourself from doing all the paperwork and learn more about how to make the best of your home loan? Contact us to make an enquiry today at +65 9845 9978.

You can also use our online loan calculator to compare and get the best home loan package available in the market! Hassle-free and at no cost!

The post What is Total Debt Servicing Ratio (TDSR) and how does it affect you? first appeared on Best Mortgage Singapore.

What is Refinancing?

Refinancing is the process of switching your existing home loan package to a new one with another bank. Refinancing is a common practice in Singapore and people often do it to take advantage of:

1. Lower interest rates
2. A shorter loan tenure
3. The option to change their mortgage type (eg: from a fixed rate to a floating rate)

Why Refinance?

In Singapore, most home loan packages are structured similarly. The interest rates for the first 3 years are significantly low followed by a substantial increase from the 4th year onwards. Since there are no loyalty rewards for sticking with the same bank, it makes financial sense for property owners to switch to another loan package with better interest rates every few years.

Over time, getting a lower interest rate can result in significant savings. Not only can you save a huge amount of money, refinancing can lead to lower monthly repayments as compared to your existing monthly mortgage payment.This will improve your cash flow, leaving you with more discretionary income for other expenses.

Pro Tips for Refinancing

#1 Keep a look out for a better offer

The home loans market is ever-changing, with banks offering different interest rates every month. While your loan package may have been the best one several years ago, it is unlikely to be that way now.

Using an online home loan calculator can help to compare all the available home loan package quickly, without having to toggle through the websites of all the different banks. Hassle-free and at zero cost!

#2 Monitor the lock-in period

If you refinance your home loan after the lock-in period expires, you would still have to bear higher repayments for a minimum of the next three months due to the notice period requirement. If you monitor your lock-in period, you would be able to apply for refinancing earlier.

The best time to refinance is to do it four to seven months ahead of the lock-in expiry.

#3 Improve your TDSR

The Total Debt Servicing Ratio (TDSR) is a framework to ensure that people borrow and banks lend responsibly. The TDSR limits the amount borrowers can spend on debt repayments to 60% of their gross monthly income. It was introduced to ensure loans are only issued to individuals who can actually afford them.

Improve your TDSR by clearing up some of your other debts. It’s advisable to do so a month or two ahead so that it shows on your credit report.

Still unclear if you should refinance? Book a free consultation with us at +65 9845 9978 today!

The post Why should I refinance my home loan? first appeared on Best Mortgage Singapore.

Since buying a property is a huge financial commitment, it pays to understand the jargon and terms often associated with it so that you know what you are paying for.  Here are the top 15 terms and acronyms you’re likely to come across as you prepare to take out a home loan:

1. In-Principle Approval/Approval-In-Principle

Approval-In-Principle (AIP) is a non-binding pre-approved loan amount given by the Bank based on your credit score. This amount indicates how much you will be able to borrow so that you can focus on properties that you can afford and not waste time viewing those that are out of your budget. The AIP/IPA is usually valid for 30 days.

2. Interest Rate

Interest Rate is the cost of taking out a mortgage loan. For home loans, they are usually classified as fixed, variable or board rate.
A fixed rate loan charges the same rate of interest throughout the loan tenor.
A floating rate loan offer rates that reset periodically to match the benchmark it is following. You may want to ask the bank about the calculation of the floating rate as not all banks are transparent when it comes to using their internal board rate.

3. Loan Tenor

Loan tenor refers to the number of years it will take to repay the loan.

4. Loan-to-Value (LTV) Ratio

The Loan-to-Value (LTV) ratio is calculated by dividing the amount of the mortgage by the value of the home. LTV may be up to 80% if you do not have any other outstanding loans.

5. Singapore Interbank Offer Rate (SIBOR)

Singapore Interbank Offer Rate (SIBOR) refers to the rate at which banks in Singapore lend/borrow funds from each other. It is calculated daily based on the average cost of borrowing funds in the interbank market for one, three, six and 12-month maturities. It is quite common for banks in Singapore to use the SIBOR as a benchmark to price their home loans. Your home loan rates will usually include a spread that the bank adds on top of the SIBOR rate.

For instance, the SIBOR might be at 1.2% now and the spread is 0.1% from the bank, making your the interest chargeable at 1.3%. One advantage of using a SIBOR-rate loan is that it is transparent as the data is publicly available.

6. Swap Offer Rate (SOR)

Another commonly used benchmark rate to price home loans is the Swap Offer Rate(SOR). Comparatively, it is more volatile compared to the SIBOR as it takes into consideration the exchange rates between the US dollar and Singapore dollar. However, borrowers may take up a SOR-rate loan in order to take advantage of bigger declines in interest rates if they feel that the rates are on a declining trend.

7. Mortgage Servicing Ratio (MSR)

The MSR is the percentage of your total monthly income that you are allowed to use for the monthly home loan repayment. As part of the cooling measures set by the Monetary Authority of Singapore(MAS) in 2013, the MSR is capped at 30 percent. You should figure out your LTV and MSR before you take up a home loan as it will determine your loan quantum. Do note that the MSR only applies to bank-issued loans for the purchase of HDB flats.

8. Total Debt Servicing Ratio (TDSR)

The TDSR is another cooling measure similar to the MSR that limits the amount of money that banks can lend you. The difference is that outstanding debts are factored in as well – credit card debts, car loans, personal loans. This effectively means you you’ll need to discount this from your monthly income before accounting for the 60% limit.

9. Lock-in Period

The Lock-in Period for a home loan refers to a set number of years that the borrower will have to stay with the terms of the loans, after which he/she will be penalised for changing the terms of the loan contract. Banks typically offer a more attractive interest rate for the first few years of the loan in order to attract borrowers to stay with the loan package.

10. Refinance/ Repricing

Typically after the first few years of your loan where you no longer enjoy the lower rates, market interest rates might have moved to be more favourable compared to the rates you are currently paying on your loan. Refinancing refers to applying for a new loan to replace the existing home loan for a more attractive rate. You should aim to refinance your loan after the lock-in period so that you do not incur any pre-payment penalties.

Repricing is a similar concept but rather than applying for a new loan with another bank, you ask for a better loan package from the existing bank.

Contact us!

Are you looking to get or refinance your housing loan? Make an enquiry at +65 9845 9978
!

The post 10 Mortgage Jargon Everyone Should Know Before Taking A Home Loan first appeared on Best Mortgage Singapore.