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Why compare at GoBear?

  • Free and unbiased - We cut out the middleman and don’t play favourites with plans.
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  • Personalised Search - Skip the brochure-talk. We get personal.
  • Time Saver - Widest loan options. Don’t waste time looking around.
I want to
a/an , and
it's .
PROPERTY STATUS
Has your property gotten a Temporary Occupation Permit (TOP) yet?

Yes: Select ‘already built’
If your property is a HDB, it should already be built.

No: Select ‘under construction’
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My dream home costs
${{criteria.property| number}}
,
so I’d like to borrowI’d like to refinance
${{criteria.amount| number}}
,
LOAN AMOUNT
For your first home you can borrow up to 80% of its value. For your second home you can only borrow up to 50%.

Better fill up that piggy bank!
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and repay it over years.
HOW MANY YEARS TO REPAY MY LOAN?
You can take up to 30 years to pay back the loan for a HDB flat, and up to 35 for private property and ECs.

If you think you’ll take a while to pay back your loan, you better get it sorted quick – your loan repayment period can’t go past your 65th birthday.
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You need to loan a minimum of ${{limitation.LoanAmount_Min|number}}.
You can only loan up to ${{limitation.LoanAmount_Max|number}} based on the value of your property.
You need to hold the loan for at least {{limitation.LoanTenure_Min|number}} years.
A maximum tenure of {{limitation.LoanTenure_Max|number}} is required for the property type.
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What is a home loan?


Well, a home loan is exactly what it sounds like …. a loan so you can get a home!

When you see your dream home but you don’t have that kind of cash in your bank account, a bank or other financial provider will loan you the money to pay for it. Put simply it’s a loan, not a gift. In the end you’ll have to make repayments. Moreover, you’ll have to repay more than just the original home loan amount, which is known as the “principal” in banking terms. You’ll pay interest on that amount, and probably some bank fees as well.

How do I apply for a home loan?


Applying for the home loan is the easy part. It’s qualifying for the home loan that’s difficult. Anyone can apply for a mortgage loan, begin by comparing on GoBear, select the loan you want, and with a few clicks of a button your application can be underway. Easy peasy!

Regrettably, that doesn’t necessarily mean the bank will give you the loan. The bank needs to make sure you can afford to repay your loan before they’ll give it to you. The mortgage broker, financial institution, or bank will look at your income, what type of work you do, how stable your employment is, and your credit history.

They might also assess if you have collateral for a home equity loan. They’ll take into account type of property, where it is, and its current market value. Then they’ll do some calculations to see if you qualify according to their rules. Every bank, mortgage broker or financial institution has slightly different rules so don’t be discouraged if one bank does not give you a home loan. Here’s a list of providers you can compare on GoBear.

What kind of info will the bank want from me?
The bank will want to see:

- A copy of your NRIC/Passport
- Your payslips from the last three months
- Your latest Income Tax Notice Assessment (last 2 years if you are self-employed or taking commission-based work)
- Your CPF contribution history
- Your ‘option to purchase’ or ‘sale and purchase’ agreement

How to choose a home loan

The factor that will most influence the amount you repay which, to most people, is the most important thing is in fact the home loan interest rates. High or low interest rates can really affect your repayments, so you’ll want to plug some numbers into a mortgage payment calculator before you sign on the dotted line. If you compare on GoBear you can save yourself the trouble of going to multiple different bank websites to find a mortgage calculator – just use ours to see how much you’ll be repaying each month.

Depending on the home loan provider, you’ll be able to choose whether you want a fixed interest rate, a variable rate or a board rate. Which type of interest rate you choose is up to you and the level of risk you wish to take. In a nutshell, fixed interest rates stay the same for a certain number of years regardless of what happens in the market. A variable rate changes based on the market conditions – so it could go down (yay!) but it could also go up (boooo) - and whether it changes is up to your bank.

Moreover, a board rate is a whole new level of risk – the numbers may seem attractive, but your bank can choose to change the interest rate at any time for any reason. Like we said earlier, it’s totally up to you which level of risk you are comfortable with.

How long can I take to repay the home loan?

Well, you’re in luck! There’s no need to rush to pay off that mortgage loan, you can take up to 30 years for HDB apartments and up to 35 years for private properties. Bear in mind, the amount of time the bank will give you to repay the home loan is different from bear to bear
- the bank will take your age (and other factors) into account when working out how long you can take

Home loan basics


- 1st year interest
This is the rate you’ll pay on your home loan for the first year. This interest rate might be different to the following years, depending on the package you choose.

- Rate type
You have three flavours to choose from: fixed, variable and board. Bear in mind the fixed rate will eventually become a variable or board rate.

- Fixed rate: Your interest rate is locked in so you’ll pay the same interest rate over a certain amount of time
Variable rate: : You’ll pay a lower interest rate for the first few years of your loan, and after that the rate will adjust to be in line with market interest rates.
- Board rate: The Board rate is determined by the bank at any given time. These might seem like a great deal, but they can change at any time for any reason.

- Lock in period
This is an amount of time where you can’t switch banks, mortgage brokers or other home loan providers without paying a fee. You’ll usually get a special interest rate during your lock in period. If you want to sell your property or refinance during the lock in period, make sure you take into account, the fee you’ll pay.

- Total repayment
This is the full amount you’ll repay over the lifetime of your mortgage loan, including the loan amount and the interest you’ll pay. We’re pretty smart bears over here at GoBear but even we can’t predict the future! What we’re saying is that your total repayment is based on current rates but these rates may change over time.

- Legal subsidy
When refinancing your home loan, your new bank might pay for your legal fees associated with switching providers. All bears have claws, but we’re always wary of clawbacks - so be careful if you switch loan providers again because you might have to pay this legal subsidy back.

- Valuation fee
You’ll pay this fee when the bank appoints a professional to assess your den’s market value. Depending on the size or the value of your property this fee ranges between $150 and $700.

- Late payment fee
YUh oh, did you forget to repay your home loan on time? If so, the bank might charge you a late payment fee. This fee isn’t chump change – it can be a percentage of your loan amount – make sure to put your due date in your calendar so that you don’t miss it!

- Early repayment fee
If your loan is for 25 years, but you repay it in 10, the bank will charge you an early repayment fee. This might be a fixed amount or a percentage of your home loan amount, depending on the bank. You should take this fee into consideration if you decide to pay off your loan early, because sometimes it may not make financial sense to pay off your home loan sooner than planned.

- Partial repayment fee
When you make extra payments on top of your agreed monthly repayments, the bank might charge you a fee. This can be a fixed amount or a percentage of your loan amount.

- Cancellation fee
This is the fee you’ll have to pay when you cancel your home loan before the bank has transferred the money to you. Point noted is if you see a worthwhile deal at another bank and want to switch, make sure to take this fee into account.

- Administrative fee to use 3rd party fire insurer
Most banks have a preferred fire insurer. You’ll have to pay this fee if you choose your own insurer.

Now you know a bit of the lingo, and how to choose a home loan, fill out the form above with your details to compare home loans from Singapore’s most trusted banks on GoBear.

Find the best and most extensive range of home loans with quick cash, lowest interest rates and flexible instalments.

Compare and apply for Home Loans from Singapore's most trusted banks on GoBear.

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Compare and apply for loans from Singapore's most trusted banks on GoBear.

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  • 1.How much can I borrow?
    For your first home, you can borrow up to 80% of what your house is selling for or what the bank says your house is worth. But this percentage drops to 60% if you choose to repay your loan over more than 25 years (for HDB) or 30 years (for private housing or executive condos).
    For your second home loan you can borrow up to 50% and, for your third, (and any more after that) you can borrow up to 40%.
    But if you’re refinancing, you can borrow the full outstanding amount. That’s pretty handy!
    Bear in mind, for home loans and refinancing, you can’t use any more than 60% of your income on loan and debt repayments (banks call this your Total Debt Servicing Ratio or TDSR in banking jargon). For HDB and executive condos, you can’t spend more than 30% of your income on your home loan repayment (in bank lingo this is your Mortgage Servicing Ratio or MSR).
  • 2.How long can I take to repay the loan (called “loan tenure” in banking jargon)?
    Well, you’re in luck! No need to rush to pay off that loan, you can take up to 30 years for HDB apartments and up to 35 years for private properties. Bear in mind, the amount of time the bank will give you to repay the loan is different from bear to bear - the bank will take your age (and other factors) into account when working out how long you can take.
  • 3.Can I use my CPF to make my monthly loan repayments?
    Yes, you can use your CPF Ordinary account to pay for your monthly loan repayments.
  • 4.Why do I need fire insurance?
    Every bear needs fire insurance on their den. Even if you are super careful, things like fires are often out of your control, so the banks want you to have fire insurance on your property to be eligible for a home loan. Usually banks have insurance partners they prefer to work with and might charge you a fee for choosing your own insurer, so be sure to read the fine print before you get your fire insurance.
  • 5.What can I do if I can’t afford the down payment?
    Well, you have a few options… You might want to look for a home more in your price range. But if you’ve found your dream home and you want it no matter the cost, you might be able to get a personal loan to help with the down payment. This is something to think seriously about because you can end up paying a lot more money in the long run once you factor in the interest on the personal loan.
  • 6.What is the minimum loan amount I can borrow?
    Oooh good for you, you’ve either won the lottery, got some good savings or found a bargain new home! Well, usually banks will loan a minimum of $100,000 for both HDB properties and private properties. This varies between banks so be sure to look around for a deal that suits you.
  • 7.What’s the deal with fixed and variable rates?
    It’s up to you (and how much risk you want to take) as to whether you choose a fixed or variable interest rate. In a nut shell, fixed rates stay the same for a certain number of years regardless of what happens in the market. A variable rate changes based on the market conditions – so it could go down (yay!) but it could also go up (boooo) - and whether it changes is up to your bank.
  • 8.What are TDSR and MSR?
    Good question!
    TDSR stands for Total Debt Servicing Ratio. TDSR restricts how much of your income you can spend on debt repayment (up to a maximum of 60%). This means that you’ll always have some money for essentials, rather than every penny you make going towards repaying your loans.
    MSR is short for Mortgage Servicing Ratio. For HDB and executive condos, it means you can’t put more than 30% of your monthly income towards your housing loan payments.
    While these rules might seem annoying when you’re trying to buy a home, they really are in your best interest to make sure you are borrowing responsibly.
  • 9.What’s the deal with SIBOR and SOR?
    Lots of people like SIBOR and SOR because they’re calculated by multiple banks interacting with each other - so they’re more transparent and secure than rates determined by just one bank. SIBOR (Singapore Interbank Offered Rate) is the average of how much banks would charge each other to borrow money. SOR (Swap Offer Rate) is based on the exchange rate with the US dollar and fluctuates based on the US economy. Only two banks in Singapore offer SOR for home loans. You can find out which ones by using GoBear’s handy comparison tool and filtering by interest rate type.
  • 10.Refinance vs re-pricing. What’s the difference and which is better?
    Refinancing You’ll change provider and get new rates. You might have to pay some costs like valuation fees or switching fees, especially when you are still in the lock-in period.
    Re-pricing You’ll stay at your current loan provider or bank, but you’ll get a new package. This only makes sense if you’ll be paying less interest so be ready to negotiate for a better deal. Some banks won’t let you re-price and most of the time you will have to pay a re-pricing fee so be sure to factor that in to see if it’s worth it. It’s up to you to examine the costs that come with refinancing and re-pricing and weigh them up against the savings from the new loan package and interest rates. You can then compare which one saves you the most money overall.
  • 11.When can I refinance or re-price my current home loan?
    Good for you, you’re always looking for the next best deal… that’s smart! You can refinance any time after your lock-in period for your current home loan expires. But if you refinance or re-price during the lock-in period you’ll often be charged hefty bank fees. Be sure to check your new rates versus your old and take into account any costs of switching providers.
  • 12.What kind of info will I need to show the bank?
    The bank will want to see:
    1. A copy of your NRIC/Passport
    2. Your payslips from the last three months
    3. Your latest Income Tax Notice Assessment (last 2 years if you are self-employed or taking commission-based work)
    4. Your CPF contribution history
    5. Your ‘option to purchase’ or ‘sale and purchase’ agreement
  • 13.How does the bank figure out the property value, and what happens if there’s a difference between the valuation and what I paid for the property?
    The bank uses special calculations to figure out the market value of your property at a particular point in time – and they’ll charge you between $150 and $700 to do the valuation, depending on size and value of your home. The valuation will be based on things like your property’s location, condition or structure. If the bank’s valuation is lower than your purchase price, then you’ll have to pay the difference from your own pocket before they’ll approve any loans.
    For example, if the property you want to buy is selling for $300,000 but the bank values it at $250,000, then the bank will loan you a maximum of 80% of $250,000 (that’s $200,000). You’d have to come up with the $100,000 balance in cash or from your CPF Ordinary Account.
  • 14.What is Legal subsidy and how can I get it?
    Legal subsidy is when refinancing your loan, the bank pays for the legal fees associated with switching providers. While previously almost all banks subsidised the legal fees for home loans, at the moment only a few banks do. Legal subsidies vary in size and can depend on the loan amount and type of property you’re buying. Bear in mind there can be a clawback period with the legal subsidy you receive.
  • 15.What are cancellation, early repayment and partial repayment fees?
    Cancelation fee This is the fee you’ll have to pay when you cancel your loan before the bank has transferred the money to you.
    Early repayment fee If your loan is for 25 years, but you repay it in 10, the bank will charge you an early repayment fee. This might be a fixed amount or a percentage of your loan amount, depending on the bank. You should take this fee into consideration if you decide to pay off your loan early, because sometimes it might not make financial sense to pay off your loan sooner than planned.
    Partial repayment fee When you make extra payments on top of your agreed monthly payments, the bank might charge you a fee. This can be a fixed amount or a percentage of your loan amount.

If you find these answers helpful? Check out our FAQs for other products to learn more.