Getting a home loan is a commitment for the next 20-30 years. Careful considerations and selecting the right loan package can save you thousands of day.
TYPES OF LOAN
Most of the banks offer Fixed Rate Package and Variable Rate Package or a Hybrid Package
1) Fixed Rate Package an interest rate that is fixed for a set of period of time. For fixed rate loans, borrowers are certain of the monthly loan repayments and protected against increase of interest rate during the fixed period.
2) Variable Rate (or Floating Rate) package have an interest rate that changes during the loan term. These changes are influenced by Singapore InterBank Offer Rate. Simply, if the rate go up, your monthly installment will go up too, vice versa.
3) Hybrid Package. Some banks offer a combination of the two type of package, where part of the loan under fix rate and the rest under variable rate.
When enquiring on housing loan, you may like to find out :
- How much can I borrow?
- What is the monthly installment?
- What are the different type of loan package available?
- Which package suit me the most?
- What is the lock-in period? If partial / redeem the loan, what is the penalty fee during the lock-in period?
