Everyone deserves to have a home.
Nothing beats the sense of security and peace of mind it brings. However, with the cost of living hiking up every year, buying a property seems to be unaffordable to most of us.
Then banks and other financial institutions started to recreate their home loans and made them competitive. If this is your first time to buy a home, then you will most definitely need a home loan unless you were born with a silver spoon in your mouth.
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Standard Chartered Home Loan Singapore
Standard Chartered also offers a couple of home loans in Singapore. The bank is part of a British international banking group which offers financial services across Asia, Africa, UK, the United States and the Middle East. It does not offer the same home loan products in other countries. In fact, it does not even have a home loan in certain countries.
Though Standard Chartered has various loans, you need to consider various facts to know if one of them actually fits your needs.
Standard Chartered HDB Home Suite
Standard Chartered HBD Home Loan is applicable on either the completed or under construction properties. This means that even if the HBD flat is still under construction, you can already apply for a Home Loan to finance your chosen unit. You can borrow up to 80% of the property’s market value.
This Standard Chartered HBD Home Loan has SIBOR-pegged interest rates. It means that the interest rate of this home loan is variable and will follow the rates of SIBOR. SIBOR means for Singapore Interbank Offered Rate. As the name suggests, Standard Chartered uses the same rate which the banks in Singapore use when they lend unsecured funds to each other.
Notes on Standard Chartered HBD Home Loan
The minimum loan amount you can apply for is S$100,000. In case you just need to borrow a lesser amount, then you do not have to apply for this home loan. You have to shop around for other loan providers who offer a more fitting loan.
Standard Chartered Home Suite
Standard Chartered Home Suite has two options for you. You can either get a home loan with Fixed Deposit Rate linked pricing or the MortgageOne SIBOR. Just as discussed above, the variable interest rate will be based on SIBOR.
Notes on Standard Chartered Home Suite
This home loan is offered to buyers of both completed and building under construction properties. You will also get a Standard Chartered Platinum Credit Card and its exclusive benefits. Take note that you must seriously consider having a new credit card together with a new housing loan. Consider if you can handle you repayments well.
Though the bank offers Deposit Insurance Scheme, Foreign currency deposits are not covered. Final approval of the home loan is subject to receipt and validation of all required documents
Standard Chartered MortgageOne SIBOR
Standard Chartered MortgageOne Sibor is a promotional offer to finance your home. How does this work?
Let’s say you took out a loan of S$1,000,000 with an interest rate of 1%, then your loan payment interest is S$10,000. Under MortgageOne Sibor, if you deposited S$600,000, then your interest loan payment will be lesser.
Deposited amount: S$600,000
- 2/3 of your deposit will earn 1% of interest: the 2/3 of S$600,000 is S$400,000.
- S$400,000 x 1% = S$4,000
- 1/3 of you deposit will earn 0.25% base interest: the 1/3 of S$600,000 is S$200,000.
- S$200,000 x 0.255 = S$500
- Total earned deposit is S$4,000 + S$500 = S$4,500
- Your loan payment interest S$10,000 – Total earned deposit S$4,500 = S$5,500.
Your net loan interest payable is S$5,500.
Notes on Standard Chartered MortgageOne SIBOR
You need to remember that the minimum loan size for this loan product is S$100,000. If you need less than this amount, it is better to just find an alternative rather than borrow the amount you don’t need.
You must also take note that this promo is only for completed private residential property only. This means that if you are purchasing an HDB Home or a home which is under construction, then you need to find another mortgage option.
Standard Chartered HDB Bridging Loan
Looking forward to buying another home but you lack the cash for a downpayment? If you have an existing property, this loan can help you out. Standard Chartered will fund your new home loan’s down payment if you are selling your property to buy a new one.
This does not mean that the bank is buying your existing property, it is just giving you funds against its value as a mortgage.
Notes on Standard Chartered Bridging Loan
This is offered only for Singapore Citizens and Permanent Residents. The maximum loan tenure is only six months.
First-time buyers and contra-transaction will not be qualified since it will require you to have an existing property. All of the borrowers, if it is a joint property, must all agree with this loan solution.
Conclusion on Standard Chartered Home Loan Singapore
If you are planning to buy a home whether it is your first or nth time, you must consider the financing option.
Take your time to shop around for the best housing loan. If you lack the funds for your down payment and you can’t pass up the opportunity, you can get the bridging loan. However, it is very limited.
You can also get a loan from Cash Mart for your home needs. Give cash Mart a call to know more of its loan solutions today.
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