Low Income Home Loan

Housing Loan for Emigrants

Edward Simon — Wed, 10 Mar 2010 18:06:12 +0000

In Singapore, housing loan packages have two categories: fixed rates or floating (variable) rates.

Fixed rates are sometimes offered for up to 3 years. Still, other lenders can cover up to 5 years or 10 years. In many Western countries, fixed rates can be made throughout the loan tenure.

Floating rates can be categorized into published rates or board rates. Published rates are mainly rates that are released daily, example being the Singapore Interbank Offered Rate (SIBOR) or Singapore Swap Offer Rate (SOR), while board rates are set by the individual bank or financial institution. Many of the lenders based their board rates to a particular financial bench marks, yet the accurate components are sometimes not clear and variations in board rates become indefinite.

In general, there are no restrictions on emigrants starting housing loans in Singapore but do pay attention of the following.

Loan to Value

The maximum loan to value (LTV) in Singapore is 90% of the purchase price or valuation, whichever is lower. Housing loan packages for 90% financing are limited as some lenders do not tender maximum LTV to emigrants. Loan approval for 90% financing is also stricter than for LTV 80% and below.

Income Proof

To have commnedation for a housing loan your latest income tax assessment or a letter of appointment from your local employer is required. Tax assessments from some countries may not be respected by the local mortgage loaners.

Landed Property

Before an emigrant can purchase restricted properties like vacant lot or landed properties such as bungalows, semi-detached, and terrace houses, the approval from Singapore Land Authority is essential.

In-principle Approval

Try to apply for an in-principle approval before proceeding with a purchase, since loan applications are more complex for emigrants. Consider to hire a good and professional housing loan consultant. This may help you spare time and money with your loan approval.

Find out more about a premier housing loan advisory firm, providing housing loans with free mortgage broking.

Checklist Of Things To Consider When Buying A House

Julia Reynolds — Wed, 10 Mar 2010 15:20:48 +0000

Congratulations! You have now achieved financial viability to be able to buy a home. And you have set your eye on just the abode you know could be your home where you can establish a happy life with your future family.

Nevertheless, this is not the moment to act impulsively. Before you spend your hard-earned income on the down payment, you must consider several essential factors. Acquiring a house is probably going to be the biggest purchase you are going to make in your life, after all. This is one decision that you could not afford to be a wrong one.

People have a tendency to allow their feelings control their decision-making when they are buying a house. They ignore glaring issues that should have been addressed right at the start. And then, when the excitement of their acquisition wears off and they experience the inconveniences caused by the issues that they should have looked into earlier, they become disenchanted and frustrated with their new house.

So, to avoid being disillusioned and angry, here are the important matters to consider prior to paying for your first house.

1. Consider the neighborhood

During that single visit to a neighborhood, you had an impression that it’s peaceful and quite. if you intend to buy a house set in a particular neighborhood, try visiting the place at certain times of the day to get an overall impression of the place and to get to know the community before making a final decision.

2. Consider the community

A lot of us are seeking a residential area that could help mold our children’s characters. A community that cares and look out for each other is a gem.

3. Consider the structural defects

Viewed from the street, the house calls to you to purchase it. However, it is prudent to closely scrutinize the building to see signs of potential problems, such as leaks, issues about plumbing and electrical wiring, and invasion of pests.

4. Consider the space

If see yourself building a family in the future, you have to consider a house that has enough rooms for all family members.

5. Consider the price

Your banking institution or loan agent will decide the amount they will be willing to loan you based on your income, your credit track record, your employment history, among others. You must get a pre-approval on your mortgage so that you know if you can afford to purchase the house you’ve set your heart on.

Learn more about a premier housing loan advisory firm, providing housing loans with free mortgage broking.

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Variable Or Fixed What Will Be The Decision

Adam Bell — Wed, 10 Mar 2010 15:17:31 +0000

Once you decide to avail a mortgage, the immediate thing that storms your brain is selecting between fixed and floating rate of interest. It is easy to get dumbfounded at this level if you are not financially trained.

If the media and banks are exclaiming about increased interest rates you make feel pressed to go and rush into fixing your mortgage rates. Your bank or financial consultant may even advise this.

Now ideally as it should be, we assume that once you choose fixed rate plan for yourself the rate of interest will remain unaltered for the entire period you have fixed the interest rate for irrespective of any subsequent increase in the same. But actually this is not necessarily the case.

Here we demystify the nature of fixed interest rate housing loan transaction for you so that you can make an informed conclusion over the subject.

* Read the small print of your home loan document. You will find that the bank has the right to serve you thirty or sixty-days notice period that it intends to increase its interest rates.

* The bank’s first-year rates are binding on the bank only for that short period of 1 or 2 months. The 2nd-year home loan rates are not binding at all. Neither are the bank’s 3rd-year loan rates.

* Force Majeure Clause

So, while you read your home loan agreement papers, you can spot clauses like this:

“Provided further that from time to time, the bank may in its sole discretion alter the rate of interest suitably and prospectively on account of change in the internal policies or if unforeseen or extraordinary changes in the money market conditions take place during the period of the agreement.”

This is called Force Majeure Clause that enables the bank to undertake appropriate modifications in the interest rates on home loans they approve to their borrowers.

So remember to look at refinancing every couple of years so that you do not pay too much. If you select a good mortgage broker company you can save a lot of money over the life of your mortgage and in almost all cases the consultation cost is free.

Find out more about a premier housing loan advisory firm, providing housing loans with free mortgage broking.

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Things to Consider When Reinvesting Your Home

Adrian Phang — Wed, 10 Mar 2010 15:10:33 +0000

Many people are unaware that they have the option of switching their loan to other investor; others are simply uninterested. They tend to be loyal with their very first lender but they don’t know that such loyalty will bring higher interest rates. Because of increasing number of housing loans and amortization period, the interest can range from thousands to hundreds of thousands of money. Below are some considerations when reinvesting your home.

Latest Interest Rate

When your current interest rate is higher than available housing loan packages on the market, it is time for you to consider reinvesting. Ask your bank or financial institution to reprice your loan package. Your lender might give you an offer. Make a comparison between this offer and with offers from other lenders to see whether you should switch or stay put.

Lock-in and Clawback Periods

When you get a housing loan, there may be a lock-in period wherein your mortgage lender will charge you a penalty fee, maybe a percentage of your outstanding loan amount, if you were to fully repay your loan. Many housing loans have drawback period. This is when the lender will take back what they gave you when you get your housing loan. Lock-in period and clawback period are different from each other. Thus, it is not advisable for you to reinvest due to these extra costs.

Loan Quantum

If the amount of your loan is larger, the savings for the same decrease in interest rates will also be also larger. Yet fixed cost to reinvesting does not vary much with quantum loan. The difference between your latest and reinvesting interest rates has to be larger for a relatively smaller loan as fixed cost takes into a more considerable part of your interest rate savings.

Identify Interest Rate Movements

Analyze how interest rates flow. If you are currently on a fixed rate package and believe interest rates are dropping, you may want to reinvest to a floating rate package. However, if you are on floating rates, try to switch in fixed rates if the interest rates are increasing.

Own Financial Evaluation

Try to get a fixed rate package. Think of increasing your loan quantum. When your monthly income increased and you want to decrease interest payments, try to reduce your loan tenure.

Find out more about a premier housing loan advisory firm, providing housing loans with free mortgage broking.

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Refinancing Your Home In Singapore

Felicia Chew — Wed, 10 Mar 2010 14:55:02 +0000

Even though refinancing a housing loan can save you thousands of dollars you will be surprised that not that many people actually take the time to do it. If you considered the time it requires and figure out the cost saving benefits and equate that to how much you get paid per hour it could be like not going to work for several weeks. Consider the following aspects so that you can see how easy it is to refinance your mortgage today.

Current Mortgage Interest Rate

It is definitely a good indication for you to explore refinancing when your current interest rate is higher than available home loan packages on the market. A first step to take is to go back to your existing banking company or financial institution and ask them to revise your package, otherwise known as repricing. If your lender comes back with an offer, it will normally be better than your current one. You can then compare this offer with offers from other lenders to see whether you should switch or stay put.

Lock-in and Clawback Periods

When you take up a mortgage, there may be a lock-in period where your housing lender will charge you a penalty fee, usually a percentage of your outstanding loan value, if you were to fully repay your mortgage. Almost all housing loans also come with a clawback period where the lender will claim back “freebies”, such as legal expenses, that they “gave” you when you take up your loan (Note: lock-in period is separate from clawback period). It may not be valuable for you to refinance due to such costs.

Loan Quantum

The larger your housing loan amount, the greater your savings for the same decrease in interest rates. For example, 1% on a loan of S$100,000 is much less than 1% on a loan of S$500,000. However, fixed cost to refinancing, which represents mainly of legal fees, do not vary much with loan quantum. The difference between your current and refinancing interest rates, therefore, has to be bigger for a comparatively smaller mortgage as fixed cost eats into a more significant part of your interest rate savings.

Perceived Interest Rate Movements

Your view on how interest rates is moving can be a factor when thinking whether you should refinance. If you are presently on a fixed rate package and believe interest rates are dropping, you may want to refinance to a floating rate package. Conversely, if you are on floating rates and believe interest rates are skyrocketing, converting to fixed rates may be a positive choice.

Individual Financial Assessment

If there is a change in your financial state, you may want to alter your package details via refinancing. For instance, you are starting your own company and do not want unpredictability in other areas. Give some thought to taking up a fixed rate package. Maybe you want cash to invest in different property. Consider increasing your loan quantum. Or your monthly income has increased and you want to minimise interest loan payments. Contemplate reducing your loan tenure.

If looking through this article is giving your a headache or you simply want to save yourself the trouble, contact us for a non-obligatory housing loan consultation. Our professional advisors not only frees up your time but also do not charge any fees to help you get the best deal. Refinancing does not have to be a irksome process.

Learn more about a premier housing loan advisory firm, providing housing loans with free mortgage broking.

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Are Expats Permitted To Own Residential Properties In Singapore?

Riley Howard — Wed, 10 Mar 2010 13:08:47 +0000

Foreigners may find renting a hotel room for the whole duration of their stay in Singapore to be a very expensive quandary. A solution to this expensive quandary is acquiring a residential property in Singapore.

The Singapore administration does not restrict foreign nationals from purchasing or acquiring residential properties in the city-state.

The Residential Property Act of Singapore primarily supports Singapore nationals in their acquisition of their own residential properties by offering affordable prices. Moreover, the act supports expatriates who have given an important contribution to Singapore’s economy to buy residential properties in the city-state.

Even without any licenses or sanctions from Singapore government officials, a foreigner may purchase non-restricted residential properties. The following are residential properties that belong to the non-restricted category:

- apartment flats within a building that is not more than 6 floors in height – condominium units in approved condominium development properties under the Planning Act – a lease term on a restricted residential property; the contract must not exceed 7 years

An approval from Singapore’s Minister of Law is required of foreign nationals who intend to own all units in an apartment or condominium in an accredited development property.

Furthermore, an expatriate who intends to own residential properties that are classified as restricted cannot do so without prior accreditation from Singapore’s Minister of Law.

Under the Residential Property Act of Singapore, the following are classified as restricted residential properties:

- an empty residential lot – townhouses, separate or semi-detached homes, or terraced houses standing on residential properties – lots not approved for condo development under the Planning Act

In applying for an official sanction to be able to buy a restricted residential property, the foreign national must fill out a form and, together with the required supporting documents, send this to the Singapore Land Authority. The bureau is responsible for evaluating the expatriate’s merits to acquire a restricted residential property and for giving the approval if it finds the expat’s qualifications in order.

Find out more about a premier housing loan advisory firm, providing housing loans with free mortgage broking.

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Have Extra Cash In hand With Debt Consolidation By Remortgages And Homeowner Loans / Secured Loans.

Liz Moir — Wed, 10 Mar 2010 11:53:21 +0000

People sometimes wonder how much can be saved by debt consolidation.

Debt consolidation involves the rolling of all outstanding debts on credit cards, home improvement loans etc. into the one repayment.

Having carried out debt consolidation makes financial management much simpler by leaving one payment each month in the place of a number of payments.

When a person has a number of credit cards., personal loans, etc. to pay each month it can be a tedious task paying them all a number of times each month, and if arrears occur the person can have a default registered against them.

When payment is made by cheque or directly from the bank there are charges incurred which can be an additional cost that is far from welcome.

It does seem rather foolish to be burdened down with a number of different debts each month when there is a good way of making financial life simpler by debt consolidation which will even cut down non bank charges.

There is really no need for a number of credit card especially as they are so expensive with high interest rates.

One credit card can be handy but consolidating the others as well as the personal loans is worth while.

Arranging debt consolidation is a way of saving a great deal of money each month.

Taking out remortgages or secured homeowner loans as a means of debt consolidation makes the management of financial outgoings much better in addition to offering enormous savings.

By taking out either a remortgage or a secured loan for debt consolidation can leave you with so much more money at the end of the month that you find that you can afford the visits that you used to make once or twice a week in the past to expensive restaurants.

There can be so much money saved that you find you can now afford the odd weekend away or that summer trip abroad that you thought were gone forever.

Want to find out more about debt consolidation, then visit Champion Finance’s site on how to choose the best remortgage for you.

Always Compare Remortgages At The End of Your Mortgage Deal.

Liz Moir — Mon, 08 Mar 2010 22:46:32 +0000

Most homeowners buy their property by arranging a mortgage which is the home loan required to purchase a property.

Only those with adequate funds in the bank can do without arranging a mortgage.

There are other times when a prospective house buyer must pay cash is when it is impossible to get a mortgage as there is a problem with the construction of the property and no mortgage lender is prepared to grant a mortgage.

There are various kinds of mortgages on the market such as off set mortgages , fixed rates and tracker rates. Whatever type of mortgage is originally chosen it stays the same for a certain time, which is most commonly two years.

After the agreed period the mortgage deal ends and at that point the mortgage borrower must move to the Standard Variable Rate of the mortgage lender and this is usually called by the abbreviated term SVR.

When the current mortgage deal comes to an end the borrower has two choices and that is to stay with the current lender or move to a different mortgage lender and this is what is called a remortgage.

A mortgage broker is best placed to help you reach a decision as to whether a remortgage is your best option.

No one should just blindly continue with his current lender at the end of the period as choosing the correct remortgage is extremely important and one remortgage can be much cheaper than another.

It may well be worth considering a fixed rate remortgage at present as rates are currently low and fixed rate remortgages are still available from only 2.99% for homeowners at a maximum 60% LTV, and as these low remortgage rates are unlikely to be around forever now could be the opportune moment.

Want to find out more about remortgages, then visit Champion Finance’s site on how to choose the best remortgage for your needs.

categories: mortgage,mortgages,remortgage,remortgages,homeowner loans,secured loans,debt loans

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Bad Credit Loans Can Save The Day.

Liz Moir — Mon, 08 Mar 2010 17:39:13 +0000

For those struggling under the weight of debt their human situation will appear terrible to them.

The main reason for so many people having more money worries now than at any time in the past is due to the change in the number of hours many people work.Since the start of the recession there have been major differences in working hours.

Many people have had their paid overtime hours completely abolished as companies have struggled to continue to trade in the most adverse of conditions.

Other workers have been asked to accept a cut in wages or have been asked to work less than the usual five days each week.

When income is cut the paying of monthly debts and bills becomes a constant struggle, and paying Peter with money stolen from Paul has been the order of the day and before you know it the paying of hire purchase agreements and credit cards becomes an impossible task.

The first essential in life is to keep a roof over our heads, and to put food on the table. This is particularly true when there are children involved.

Many people who have fallen into debt find that after paying their mortgage, and buying food for themselves and their children that there is very little money left to meet credit card and personal loan repayments.

If you are a homeowner the solution is simple. Even if you now have some arrears on your debts, you can still apply for a bad credit loan.

There is no need to continue in this way, and you can relieve yourself of your financial worries by taking out a bad credit loan which are available if you are a homeowner.

Bad credit loans are secured loans secured on the equity of your property, and they can be used as debt consolidation loans to pay off not only your personal loan arrears, etc. but can completely consolidate all your outgoings.

Therefore for homeowners thinking that bad credit loans were no longer available they can now comfort themselves knowing that these bad credit loans are still in the UK financial market place.

This will enable you to grab your life back.

Looking to find the best deal on bad credit loans then visit Champion Finance’s site to get the best information on bad credit loans

categories: bad credit loan,bad credit loans,loan,loans,debt loan,debt loans,debt consolidation loan,debt consolidation loans,secured loan,secured loans,homeowner loan

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Reasons Current Home Improvement Loans Work

Alisdair Cosgrave — Mon, 08 Mar 2010 13:31:56 +0000

A loan is an excellent way to add value to your home while increasing its appeal. This will be appreciated by family members who live in the home and anyone who is potentially going to buy the home. If home improvement loans is a way of attaining that project, it might be worthwhile. Any renovation that is going to make your home sit at a higher value and make it more attractive for you is always a good thing.

Many people begin with a new kitchen when updating their home. It is often a gathering place for guests and family members and can make a dramatic effect on an older home. A new kitchen is also something that most new buyers think about and look for when buying an older home. When things are added to the kitchen such as a new counter top and more modern cabinets, it can boost the look of the entire house.

Most homes have more than one bathroom in the home. There might be one in the basement, main floor and a few scattered upstairs. When there are so many bathrooms to think about, it can make the notion of changing them seem impossible. When someone has access to borrowed money, it can be a way to complete the bathroom renovation projects.

The reason that bathrooms tend to look outdated fast, is because again, styles are always changing. In older homes we tend to see lots of cabinets of various colors with matching counter tops, older styled tiles over the tub or in the shower. Even the flooring might look out of date, it could be just a stick down floor that needs to be replaced. Often the fixtures alone can cost a fortune along with new sinks and tubs.

For a complete bathroom renovation, it could cost thousands of dollars, but replacing them can make your home look younger and help you either want to stay in your house longer, or help it to sell faster. Anyone coming into the home as a prospective buyer will be attracted to the new bathrooms and it will have an impact on their decision to buy.

The money from a loan can also go toward replacing flooring in a home. Often the carpet or flooring of whatever material can look old in a home that is a few years old. Sometimes it is from wear and tear and others it was because cheap carpet or flooring was put down and simply did not last. When new hardwood or laminate is put down, it can change the look and design of a space making it look better. New carpet and tiles can also improve the desired look of a room.

An excellent selling feature is the installation of new windows. It can make the home look great from the inside, while giving the home some added bonuses inside the home as well. Things like more heat kept inside and a furnace that doesn’t have to work so hard are just part of the reasons why they help.

Seeking out home improvement loans can allow people to make changes to their home with the ability to have the loan paid off in a reasonable amount of time. The difference in your home will make it look like a new home and give it added beauty.

To get your home improvement loans from a bank, you should search for the best bank before getting one. Cheap loans online can be problems, however doing research you will search for the best one.

categories: home improvement loans,loans,credit,personal finance,finance