Having a home is the pinnacle of financial independence for most of us.
The key to affording a home is not only to be practical when choosing a home. It also lies to the housing loan which you will use to finance your new home. With the increasing demand for affordable homes comes the innovation housing loans from various banks and financial institutions.
ANZ also offers various housing loan package which you can choose from depending on your purpose, need and current financial standing.
ANZ Home Loan Singapore
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ANZ Singapore Property Loan Eligibility
Before you even start your loan application, it is best to know the eligibility required by any loan provider. You don’t want to be declined for the simple reason that you did not qualify the eligibility. After all, declined loan applications can hurt your credit score too.
ANZ offers loans to Singaporean citizens and permanent residents, foreigners working in Singapore and have been residing, and non-working foreigners bit their nationality is exclusively qualified.
ANZ Home Loan Documents
Just like any other housing loans, ANZ requires a copy of NRIC or passport (whichever is applicable to the client). This is to prove the person’s identity. Then the applicant must also present a proof of residence, proof of income (Latest 12 months CPF Statement or 2 Years Income Tax Assessment), Option to Purchase (OTP) or Sale & Purchase Agreement, and Evidence of sale of existing property.
ANZ Home Loan Amount
Never apply for a loan higher than you actually need. Though this posts as extra cash in hand, you need to remember that you will still be paying for it against the value of your home. It is best to just borrow the approximate amount which you will need to buy your home.
ANZ Home Loan amount is based on valuation ratio. This means that it will be based on the market price of the property. The minimum amount is SGD300,000 up to 80%. However, the approved amount will depend on the bank’s discretion.
This means that though you can borrow up to 80% of the property’s estimated value, the amount of approved loan can depend on your financial status, credit score, and income.
ANZ Home Loan Tenure
Loan tenure is the period of a loan. How many years do you want to pay off the housing loan? The longer the period means lower amortisation rate, however, this also means that you will bear this financial responsibility for a long time. This may be a hindrance to getting other loans such as a car loan if you have high monthly repayments.
ANZ Home Loan tenure can be as short as 5 years up to the maximum of 30 years.
ANZ Home Loan Security
Housing loans are secured loans. The property you are purchasing will be used as the loan’s security. In ANZ, you must purchase a private residential property (completed or uncompleted) and HDB properties (4-room and above) to be able to get a loan.
ANZ Home Loan Interest Rates
It is important to decide the best interest rate that fits you.
- Fixed Rates are pre-determined rates and repayment period. This is best for individuals who likes to plan way ahead. It gives you the ability to foresee your finances and budget them accordingly.
- Floating Rates are pegged to either 3-month Swap Offer Rate (SOR)2 or the average of both 3-month Singapore Interbank Offered Rate (SIBOR) and Swap Offer Rate (SOR). This means that the interest rate can go down or higher depending on the SIBOR. SIBOR is the interest rate used by banks when they get a loan with each other.
ANZ Home Loan Products
- Purchasing Residential Property Loan
- Equity Loan or getting a loan against your existing residential property
- Bridge Loan is a loan offer by ANZ to help the customers have enough downpayment to get a housing loan.
ANZ Home Loan Calculator
ANZ Home Loan Calculator gives you an estimate on how much you can borrow depending on your income and other financial responsibilities. It is also important to note if you are getting a loan or jointly with someone else.
While you can get only an estimate, it will help you see how much you can borrow and if it is enough to buy your own home.
ANZ Home Loan Repayment Calculator
The Loan Repayment Calculator can show the estimated amount of your monthly repayments based on the amount you want to borrow and the interest rate. This calculator can give you an idea if you can actually handle the repayments without sacrificing your basic needs.
ANZ Property Loan Fees and Charges
Aside from the interest rates, there are also other fees and charges you have to consider. When buying a home, certain legalities are also involved. You will even need a lawyer to finalize your home purchase. Also, you will need to pay for the required insurance.
While ANZ offers various loan packages, take note that you have to use the one that best fits your need. If you are just looking for a loan to make a minor home improvement or buy additional furniture to your own home, you can opt to get a personal loan from Cash Mart.
Cash Mart offers personal loans with flexible terms based on your preference and needs. Talk to a Cash Mart loan executive today at +65 6397 4111.
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