A mortgage loan is one of the main ways to borrow money. The loan originated from the banks and was then given to you based on your ability to repay this loan. There are many types of mortgage loans that can be availed by you. If you have no default in your last mortgage loan, then it is possible for you to get a new one from Singapore interbank bond market. This article discusses different types of mortgage loans available in Singapore as well as their advantages and disadvantages for the borrowers.
The benefits of mortgage loan in Singapore, include:-
- You also get a fixed monthly payment
This is the most exciting part. In the case of a mortgage loan, all your payments are fixed, unlike other loans where you need to pay the interest out of it. The banks in Singapore give you a fixed monthly payment and this will be the same for every month without fail. This also means that you do need to worry about inflation because your monthly payment is fixed at a certain amount as mentioned before.
- Possibility to access cash early
When it comes to other loans, one has to wait for a long time before getting cash from them. However, in the mortgage loan, this is not the case, as you can get money from your home once you have repaid the debt installment for a particular amount of time. The banks would issue you a new loan and you will have to pay the outstanding amount of your old loan as well as the interest. You can also get a fresh mortgage loan from another bank if your current bank is facing some difficulties.
- Easy to repay
In the case of other loans, you may have to pay a large amount of interest for each month for which you need to repay this loan. However, with mortgage loans in Singapore, all your payment is fixed and thus it is much easier for you to repay this amount each month.
- The interest rate is also low
In other loans the interest rate is high and you need to pay a large amount every month. You can repay your loan in just three or four years but it will cost you a huge amount of money. In the case of a mortgage loan, the interest rate depending on your last mortgage loan is fixed and thus it will be lower than the regular interest rates. You do not have to worry about this issue.
- Less hassle
Other loans can be very tedious to get and this could also cause a loss of money in the long run. However, with mortgage loans in Singapore, the process of getting one is a bit more simple and you do not need to give a physical address or deposit an amount at the bank. You can easily get a mortgage loan by filling up an application form at any of the banks and it will be approved within one day.
- Less paperwork
When it comes to other loans you need to give a lot of information about yourself and do a lot of paperwork. You are required to give your address as well as proof of income, and also contribute to the home loan insurance. However, with mortgage loans in Singapore, most banks deal with applications online and thus you do not need to visit the bank just to apply for one.