Banks in Singapore are benefiting from the sizzling property market. Not surprisingly, there has been an increase in the number of home loan applications. And with the outlook for the property sector remaining buoyant, market watchers say they expect interest rates to hold steady. Citibank, for example, is reporting an increase of more than 20% in loans growth. "We have seen a significant increase in...
Finance
Home owners should first decide the amount of mortgage cover and the premiums they can pay The recent case of Madam Kok Pooi Leng, who lost her semi-detached house after her husband was killed last year, has thrown into the spotlight the importance of mortgage insurance. Madam Kok’s house was repossessed by the bank last year because she had not been able to make loan repayments on the outstanding...
Falling energy prices and a potential slowdown in the United States economy could bode well for Singapore homebuyers. Bankers and economists have agreed that interest rates may have peaked and are beginning to show signs of a decline. The key barometer to take note of is the Singapore Interbank Offered Rates (Sibor), which often influences other rates. Currently, the Sibor stands at around...
When purchasing a property, considerable attention should be paid to picking the right form of financing available in the market. To help buyers choose the right financing, Mr Gary Tan (picture), an assistant vice president with DBS Bank's Consumer Banking Group, has shortlisted four main questions a potential homeowner should ask before applying for a home loan. Firstly, the potential buyer has to...
Maybank says it wants to grow its home loan business in Singapore.This was announced on Wednesday during a news briefing to introduce its new Singapore country head - Pollie Sim. Over the past year, Maybank's share of the home loans sector in Singapore grew by three-fold, with 30 percent coming from HDB homeowners. As part of the strategy to focus on the development of its consumer banking business,...
One of the most common pieces of financial advice is to make and stick to a budget. But what does that mean exactly? It’s easy to know if you can or cannot afford that purchase at the grocery store simply by looking in your wallet. But how do you know if you can handle big-ticket items like a car or a plasma TV? Knowing how to budget can mean the difference between early retirement and working until...
Financing a home could get more expensive soon as consumer banks appear to be gearing up for another round of rate hikes for their home loan offerings. Borrowing costs, especially on the residential property front, will get even more expensive soon. The six-month interbank rate, the benchmark at which banks price their deposit rates, has been rising steadily. It is now up by close to 40 basis...
If you are looking to finance or refinance your home, here are a few things NOT TO DO: Don’t Kick The Tires. How much you put down, credit affects your interest rate. It drives lenders crazy to pick up the phone and be asked what their best rate is. How much you put down on your home and how good your credit is directly affecting the interest rate on your loan. You can shop for rates, but be prepared to...
Rates are among the most important criteria when choosing a home loan. Other factors include one’s financial situation, risk appetite, and the need for flexibility. You should also consider issues such as lock-in periods, legal fee subsidies, stamp fees, valuation, insurance, processing fee and legal fees. Most importantly, one must choose a bank that they are comfortable in doing business...