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Housing Loan FAQ

General

Private Property

HDB

General

How much loan can I qualify for?
Singaporeans and Singapore Permanent Residents can normally borrow up to 80% of the purchase price or value of the property, whichever is lower, provided that the borrower has only 1 housing loan. For the 2nd housing loan and 3rd housing loan onwards, the maximum loan-to-value drops to 50% and 40% respectively. Do note that the exact loan amount you can qualify for will also be dependent on the loan tenure, income and existing loans. The monthly instalment of your mortage should generally not be more than 33% of your monthly income. Some mortgage lenders may lend up to 50% of your monthly income on a case-by-case basis (refer to Indicative Test for Housing Loan Eligibility).

Can I use my CPF savings to buy a property?
Yes, you can use CPF savings towards the purchase of the property, payment for stamp duty, legal fees and repayment of monthly instalments for the loan as long as you satisfy the following criteria:

Where can I obtain my CPF Statements?
The most convenient method is to log in to the CPF website with your SingPass and retrieve the CPF statements.

Am I getting my loan from Finko?
Finko helps you to source the best home loan packages and is not involved in extending loans. The creditor is the financial institution that you choose to go with.

What's the advantage of getting my housing loan through Finko?
At Finko, you enjoy convenience, the best housing loan packages and professional advice at no cost to you!

When should I refinance my housing loan?
As a rule of thumb, it is a good time to refinance when your lock-in and claw-back periods for your housing loan has expired or if there is a significant difference between your current loan interest rates and refinancing rates. If in doubt, feel free to contact us for a non-obligatory consultation.

Which is better, fixed rate or variable rate?
There is no hard and fast rule. Whether fixed rate or variable rate is better really depends on your risk appetite and expected rate fluctuations in the coming years.

How do I reset my SingPass password?
You can reset your password at the SingPass website or any SingPass counter (e.g. any CC).

If I have difficulties forking the minimum downpayment using cash or CPF, can I borrow this amount?
The downpayment cannot be covered under a housing loan. An alternative to cover this amount would be credit card or personal overdrafts/loans but do bear in mind the high interest rates for such facilities.

Can I obtain a home loan if I have credit issues?
You will need to have a clean credit record of at least 6 months, ideally a year, before the financial institutions will consider approving your home loan.

Can I obtain a home loan if I am on a debt repayment program?
You will need to be out of the debt repayment program for at least a year before the financial institutions will consider approving your home loan.

Can I obtain a home loan if I am an undischarged or recently discharged bankrupt?
You will need to have discharged your bankruptcy for at least a year, ideally 2, before the financial institutions will consider approving your home loan.

Private Property

Will I qualify for a housing loan if I am a Singapore Permanent Resident or foreigner?
There is now no restriction when you take up a housing loan, following the relaxation of the housing loan guidelines.

What is the minimum downpayment?
For your first property loan, the minimum downpayment is 20% of the purchase price, of which 5% must be paid in cash and the balance can be from your CPF savings.


Can I increase my housing loan quantum when I already have a housing loan?

As long as you do not exceed the maximum LTV and your monthly income can support the increase, you can increase the loan amount. However, mortgage lenders will charge a penalty if you are still within your lock-in period.

Can I remortgage my property?
Yes. Banks and financial institutions can grant you a loan subject to their credit assessments and after taking into account the CPF amount that was utilised. However, the loan given to you will be a term loan rather than a housing loan.

HDB

Where can I obtain my HDB Statement of account?
The most convenient method is to log in to the HDB website with your SingPass and take a screenshot.

If the purchase price is higher than the valuation, can the difference be financed?
The difference must be paid by cash and no bridging loan can be granted for this amount.

What is the minimum downpayment?
For your first property loan with a bank or financial institution, the minimum downpayment is 20% of the purchase price, of which 5% must be paid in cash and the balance can be from your CPF savings.

Should I get my HDB housing loan from HDB or a bank?
It is normally better to take a HDB housing loan if you are eligible for one. However, in certain circumstances, a bank loan is advisable. For example, a bank loan is good when you are looking to sell your property within the next couple of years and the bank housing loan interest rate is lower than HDB's (for more details, take a look at this article — HDB Loan or Bank Loan?).

Can I obtain a housing loan on my fully paid up HDB flat or increase my HDB loan amount?
No, HDB does not allow this.