Types of Bank Loan
Residential Property Home Loan (Landed/Condominium/HDB)
The right property unit has caught your eye and you have signed on the dotted line. To realise that dream, KeyQuest Mortgage can help you secure the best home loan package. Our Relationship Managers will help you shortlist and help you select the most suitable mortgage loan solution to fit your needs. Understanding the terms and conditions individual loan packages stipulate can be a hurdle to overcome. Making the right considerations and weighing the options, from interest rates and loan tenure to lock-in periods, penalties and subsidies, we will help you arrive safely and comfortably. Our Relationship Manager will also explain the pros and cons of each type of mortgage, whether it is fixed, floating or variable, Singapore Interbank Offer Rate (SIBOR) or Swap Offer Rate (SOR).
Commercial Property Loan (Retail/Shophouse/Industrial)
The purchase of commercial properties extends a different step in securing a mortgage loan. For its complexities, it is probably ideal to speak to a professional who can act on your behalf, give you correct guidance and have your interests at heart. Certain banks also offer packages that take into account of your business requirements. Our KeyQuest Mortgage Relationship Managers can take you and guide through the process.
Construction loans set a different pace in terms of the repayment process unlike loans for a ready built house. Construction loans are often bundled with a housing loan that has a progressively drawn repayment scheme based on the total amount that was borrowed. As your home is built, disbursements of funds to the contractor can be made pending stages of completion. Once the house is complete, the construction loan will likely be converted to an Equity Loan to take advantage of a lower interest rate. To overcome these complexities, it is best you take guidance from our professional KeyQuest Mortgage Relationship Managers who can point you in the right direction until your dream home is fully realised.
Bridging Loans are sometimes required when you are selling and buying properties simultaneously. For the reason that the cash proceeds from the sale is not disbursed in time for the down-payment of the new purchase, this loan can be used to exercise your option to purchase as well as pay for stamp duties and legal fees. However this loan will only be approved if your current property has been sold. Timing is thus crucial and professional advice would be advantageous. Seek help and support from a KeyQuest Mortgage Relationship Manager to find the best loan from a bank that offers terms and conditions most suitable to your needs.
Equity Term Loan (Not Applicable for HDB Flats)
Equity Loans can be exercised if the value of your property has grown. The proceeds of this equity can be used for any personal issues; from debt consolidation, car loan, business expansion, children’s education and more. The loan interest rate is often equivalent to that of the housing loan rate and probably the lowest personal loan you could get.
Decoupling or Fractional Part Purchase
Popularly known in the industry as Decoupling, this particular exercise is applicable for joint owners of a property that are either seeking divorce, or attempting to purchase a 2nd property without having to pay for the substantial TDSR. The Total Debt Servicing Ratio fee which is required by law for investment or second properties. By decoupling, the 2 individuals can then take up 2 individual loans, thus avoiding having to pay the TDSR charges. With our professional training, our KeyQuest Mortgage Relationship Managers can help smoothen the path to securing your desired loan.
TDSR or Total Debt Servicing Ratio was implemented in 2013 as a framework that safeguards borrowers from over-borrowing for their property purchases. A considerable fee is now levied on all 2nd (and more) or investment properties. It is part of the government’s cooling measures to dissuade and exercise control over the overheated residential property market. Occasionally home loan applications do fail to receive approval by certain banks due to their existing policies. Yet all may not be lost as KeyQuest Mortgage has an extensive network and knowledge of the industry. What doesn’t work for some banks, may work for others even as they all work within MAS guidelines. Financing or refinancing your loan could be a breeze and you could also be on the road to lower interest rates. Consult a KeyQuest Mortgage Relationship Manager. He/she might find you a bank that would meet your requirements.
Valuation of a property can help you arrive at your right decision. At KeyQuest Mortgage, we can help if you can email or text us with the property address, with the details like the built in area and asking price. Further information like land area, built up area, age and type of the property, number of storeys will be required for landed properties will also be useful.
Introduced in 2013 the Total Debt Servicing Ratio (TDSR) was created as a framework dissuade borrowers from over-borrowing for their property purchases. It is one of the key cooling measures to stem the overheated property market. As such there are now certain restrictions in place. TDSR pertains to at least 60% of the borrower’s gross salary. At the same time, the banks will also consider other monthly & outstanding loan obligations when assessing the new loan application. This covers all HDBs, Private and Commercial Properties that are bought under individuals, sole proprietorships or any investment holding firms. As for the HDBs and Executive Condominiums (purchased direct from developer), the Mortgage Service Ratio (MSR) will also be applicable. Our KeyQuest Mortgage Relationship Managers can help you through an Approval In Principle Loan before you even start looking around for your ideal home. For the 1st home loan you are eligible for up to 80% loan, 2nd housing loan will be at 50% (30% if loan tenure is more than 30 years or loan past age 65). 3rd housing loan at 40%, (20% if loan tenure is more than 30 years).