Bank Financing
How do i finance my purchase of a property?
Before you make any decision to buy a property, you should ensure that you have sufficient funds. The purchase price can be paid from the approved CPF withdrawal, bank loan or cash. In addition to the purchase price, you should also set aside, either from your CPF (if it is approved) or cash, a sum equivalent to 4% of the purchase price as anticipated stamp duty and legal fees.
How do i apply for a bank loan?
You should first decide on your requirements before approaching any banks. Do compare different financing packages and do not sign the Letter of Offer before you are sure of all the terms and conditions stated therein as there may be a "cancellation fee" if you change your mind subsequently.
What is the quantum of a bank loan?
The Monetary Authority of Singapore has set a guideline allowing banks or finance institutions to finance up to a maximum of 90% of the purchase price or valuation of the property, whichever is lower. A bank finance institution may restrict your usage of your CPF money to pay the monthly instalment repayment of your housing loan to a maximum of 40% of your combined household income.
