Getting home loans in Singapore

This is the new genre home loan appealing to most of the home buyers in Singapore. This plan holds good for people with a good amount of cash savings. This is a tricky scenario and the buyer needs to weigh the options before investing in any. Here is how it goes, let us assume that the buyer has $5000 in his savings account and wants to borrow another $20000 from the financial institution, then looking at his savings account the institution gives him the $15000 and not $20000. But the catch here is you would not be getting any interest on the savings you have and this becomes ‘bad money’.
  
This again is not a bad deal as this saves a lot of money in interest paid towards the loan that you can earn with those savings. One can also opt for a current account from which the mortgage starts ‘offsetting’, this allows the buyer to use or spend the money in the current account, whereas the other benefits of offset still holds good. Offset mortgage can act as a good tax saving plan for any heavy taxpayer, as it keeps your savings as before and do not earn any taxable interest from the market.
  
This is a ‘no risk, no gain’ scenario, as the cash inflow, in form of interest stops, making it tax free but then again there is no increase in your wealth. However there are disadvantages to this plan as it does not provide any good deal for a person with less savings as the offsetting amount is based on your bank balance. The buyer should be having a significantly good bank balance to earn the benefit other wise the offset mortgage plan do not provide much profit and other mortgage plans provide comparatively beneficial interest rate.
  
In Singapore you find lots of options of getting home loans. Refinanced loans are also available. The property sale and purchase business is mostly very profitable here in Singapore. It is a well developed part of the world and as a result the value of land is very high here. Lots of people invest their hard earned money in the real estate market of Singapore. To them this appears to be a very attractive way of making some profit. Real estate business in Singapore is prosperous in general.

Mindy Yong 杨雯诗

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Tel: (+65) 91002985
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mindy@mindyyong.com

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