Most common questions by our clients answered here
How much do we charge for our service?
Nothing. Our services are completely FREE of charge, with no obligations and no hidden fees. Feel assured that our consultation and advice come without strings attached.
What's the advantage of getting my housing loan through Keyquest Mortgage?
At Keyquest Mortgage, you enjoy a hassle-free experience, fast turnaround time, the best interest rate packages and professional advice tailored specifically to your needs! You talk, we listen and advise accordingly!
Should I go for Fixed Rate packages or Variable Rate packages such as SIBOR (Singapore Interbank Offered Rates)?
Fixed rate is the more stable, with no risks involved since it will not change with market fluctuations. However, it is usually higher than the floating rate, and on a downward market, you may risk being locked in at a high rate. Variable or floating rate based on SIBOR (Singapore Interbank Offered Rate) is more volatile, prone to change. Due to recent COVID-19 pandemic, floating rates are/were at a new low. However, they will increase in time. You need to be able to handle the high to enjoy the low. Simply put there is no hard and fast rule. Whether Fixed rate or Variable rate is more suitable for you really depends on your future expectations, your risk appetite and projected market fluctuations. Here at Keyquest Mortgage, we evaluate in detail and advise on the most appropriate package for you!
When should I start on loan assessment? How do I know what I can afford?
Generally it is recommended you get your loan assessment done before you book the property unit, so that you have a rough gauge on the loan amount you are eligible for. We will be able to give you an estimated loan assessment on the spot during a meet up or even over the phone, based on the basic info you provide. This will usually be followed with documents to run a proper IPA (in principle approval) with the bank to confirm the indicative loan amount.
What’s the timeline like for my purchase and when should I secure the loan?
A typical Option to Purchase (OTP) has to be exercised within 14 days, failing which the option fee might have to be forfeited. HDB properties have 3 weeks to exercise, and will require an HDB valuation report to apply for the formal loan approval. You are recommended to “shop” immediately once the OTP has been signed so that you can obtain confirmation of your financing and letter of offer for the loan by the time you exercise the OTP within the 14 days We will help compare the latest interest packages and sort out the best financing options in advance for you to make an informed decision soonest possible.
What is the Loan To Value ratio (LTV)? How much do I need to have for the down payment?
The LTV describes the percentage of loan against your property value or purchase price, whichever is lower. If this is your first property with loan, you can finance up to 75% of the purchase price with your loan. For the remaining 25%, 5% has to be paid by cash and the balance 20% can be paid either by cash or by CPF. If it is your second property and you have an existing loan on another property: you can finance up to 45% with your loan. For the remaining 55%, 25% has to be paid by cash and the balance 30% can be paid by cash or CPF. If it is your third or subsequent property and you have more than one existing loan on any other property: You can pay up to 40% of the purchase price with your loan. For the remaining 60%, 25% has to be paid by cash and the balance 35% can be paid by cash or CPF. On top of that, Stamp Duty and Additional Buyer Stamp Duty (ABSD), when applicable, is payable by cash followed by a refund from CPF (Ordinary Account) if available.
How much stamp duty should I pay?
I have a unit in mind, how can I get an indicative valuation?
Contact KeyQuest Mortgage for more details! We are able to check directly with our valuer partners to assist with and get indicative valuations for your reference
What if my property market value is different from my purchase price?
We will get our partner valuers to assist on assessing the market value of the property. If the valuation is lower than your purchase price, you would have to pay the difference in cash before any loan can be disbursed.
How do I repay my loan?
Monthly installments, composed of principle and interest portions, are payable upon first drawdown of the loan and the installment amounts are calculated based on the disbursed loan amount, your interest rate package and your loan tenure. You can also pay your monthly installments using your CPF monies provided CPF usage criteria have been fulfilled.
Do I need insurance?
If you are taking a mortgage loan, most banks will require you to take up a basic fire insurance, which only covers the structure and typically costs very little per year. There are other forms of insurance, such as content insurance (which insures your home content such as furniture etc) and mortgage insurance (there are many types of those too), these are usually not compulsory (except for HDB properties), but might be a good idea to have. We also have insurance partners you can work with for the plans that suit you best.
What is a bridging loan
A Bridging Loan (BL) helps to satisfy your temporary cash flow requirements. It allows you to commit to buying a new property even before receiving the proceeds from the sale of your existing property. You can borrow up to 20% of the property purchase price, with a repayment period of max up to 6 months, to meet the initial down payment requests on your new property.
What are the criteria for bridging loan and what is the interest?
To be eligible for a bridging loan, your sale must be a positive sale, meaning the selling price must be high enough that you will receive cash returns after paying off your current outstanding loan (if any), and after returning CPF and accrued interest back in to your CPF account. Bridging loan application will require the exercised selling OTP for your current property, and it’s interest rate is typically higher, at 4.5-6.5% per annum.
What is refinancing? And why should I refinance?
Refinancing is the replacement of an existing mortgage loan with another mortgage loan under different terms with a different financial institution. Refinancing your loan with another bank could help you to save on interest, and significantly reduce your monthly instalment.
When should I refinance?
As a rule of thumb, it is a good time to refinance if your lock-in and claw-back periods for your mortgage loan is about to expire or if there is a significant difference between your loan interest rate and current market rates. If in doubt, please feel free to contact us for a non-obligatory consultation.
What's the advantage of getting my refinancing through Keyquest Mortgage?
We help you compare rates and sort out the best packages. We also plan out your finances so that it fits best to your future plans, and make sure that you are aware of all your available options.
- Will you be selling off the property in the next few years?
- Will you be planning to do lump sum repayments?
- Would you like to stretch out the tenure to minimize the installments?
- Do you want to explore cashing out on your current property to leverage on lower rates and unlock the potential in your assets?
- Understand the details to complex plans such as decoupling!
What are the costs of refinancing?
Legal fees and valuation fees usually need to be paid. For commercial properties, some banks may also charge a one-time processing fee. You may also incur extra cost if there are special circumstances. However, the cost can usually be covered partly or in full by the subsidies offered by the new bank. We make sure that you understand all the costs and explain all the jargon to ensure you will not incur unnecessary or hidden costs at present or in the future.
Which law firm should I use?
It is important that the law firm you use is on the panel of the bank giving you your loan. We will be happy to help check on your law firm’s eligibility and help liaise with them to ensure the transactions are smooth. If required, we will be glad to assist in recommending a lawyer for you as well. We have our list of experienced law firm partners which are on most banks’ panels.
Our service does not end here
Once you are a Keyquest Mortgage client, you will always be a Keyquest Mortgage client! We will act as your loan concierge! We will remind you when your loan lock-in period is up, keep you updated on the best rates then and help review your mortgage finances periodically so that you always stay on top of the market!
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