To own a home in Singapore is one big struggle. This is because raising the money for down payment has become a very difficult task. You may be able to secure a mortgage such as fro lenders such as Easycredit.sg but you will still need the down payment portion by your own means. For example, if the lender is willing to finance your 75%, you have to raise the 25% remaining from your own source of fund. Like in many parts of the world, in Singapore you are required to pay the amount remaining under all credit facilities.
Borrowing from your employer
Some companies may be willing to lend to their employees because they feel the urge to help their staff. Some are even generous enough to lend their employees with 0% interest.
Borrowing from your parents, relatives or friends
Licensed money lenders Singapore interest rates cannot be ignored, the reason why nowadays people are advised to make fewer borrowings since borrowing more will affect your credit application with your bank. Sometimes an argent need arises and you hardly have any money. You may liaise with your family members or friends who may facilitate you and probably charge you little or no interest.
The amount of loan your lender is willing to provide will depend on several issues which include:
- Existing debt obligations
- Your regular income
- Savings available
- Existing expenses among others.
What you can afford
You should not bit more than you can chew. You need to consider how you will be able to meet your other expenses such as you living expense, insurance taxes and other financial eventualities that may arise.
This is what you will use to settle your upfront expenses when you want funding to buy a home. As you know, CPF savings can only be used leasehold or freehold land. Your will not be allowed to go beyond your withdrawal limits. Here you will have to use your cash savings. One is advice to at least have an immediate source of income, which is at least three to six times of their gross income.
Turning to licensed lenders
This should always come as the last option after you have exhaustive persuaded all the other ways since it has a very high interest rate. To acquire this type of funding is very easy.