All You Need to Know About Singapore Mortgage Loan 

All You Need to Know About Singapore Mortgage Loan 

Investment in real estate is a very profitable practice. In a country like Singapore, the real industry sector is at a developing spree. They act as a potential source of investment for future returns. To buy or rent real estate properties, people often move to the bank asking for loans. Mortgage loans are very popular in Singapore. Here, we present to you a detailed description of all the requirements and processes to attain a Singapore Mortgage Loan.

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Types of Mortgage Loans in Singapore

There are two main types of mortgage loans in Singapore. The first one is with a fixed rate and the second one is with variable rates. Most banks provide for 60% or 80% of the entire cost. The rest has to be paid by the loan seeker in the form of cash or through the Central Provident Fund (CPF). The value of the loan differs from person to person. It depends on the tenure of the loan, financial stability of the loan seeker, age, etc.

In variable rates mortgage loans, the rates are defined by the bank solely decided on the rates. It is however a less transparent means of a loan. Some other loans include Fixed Deposit pegged Mortgage, Standard Chartered Mortgage One, etc.

Documents Required for Applying for a Singapore Mortgage Loan

  • Most recent 3 computerized payslips or bank account statements.
  • Two Annual tax assessment sheets 
  • Recent CPF account statement, with the account balance.
  • Passport or any other identity card.

In case of the property deal being finalized already, in addition to the above documents, the bank would require a few more documents.

  • A duly signed sales agreement paper.
  • Official valuation report of the property.
  • HBD confirmation document (from the official HBD portal)

Process of attaining a Mortgage Loan

  • Find a mortgage banker. You need to submit all the above-mentioned documents to the banker to get an In-Principle Approval (IPA) sheet. This sheet declares the maximum amount of loan the bank would approve.
  • Hire a lawyer, and submit a copy of the documents to him as well. He would work in compliance with the bank, the CPF Board, and the seller’s bank.
  • Once you have done all this, your loan gets approved. After the completion of the transaction, the bank automatically starts deducting the money from your account.

Mortgage loans in Singapore are easy to get and are a convenient option. Consult the right banker today and get your mortgage loan at the best rates.


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