Posts Tagged ‘goondu’s guide’

Ever wonder why HDB prices keep going up?

Saturday, October 24th, 2009

It’s a one word answer: VALUATION.

Valuation is important to both sellers and buyers. Sellers have to get apply for a valuation, where a HDB accredited surveyor would come down and value the flat, and buyers would need to pay for that valuation report, so that they can get a loan from the bank.

The purpose of valuations is to protect the lenders. If Mr Ang is asking $300k for his 3 room flat, but its current market value is only $250k, banks will only lend Mr Ang $200k. The other $100k, he would have to pay cash. This way, if Mr Ang defaults on his payments in future, and the bank repossess the flat, they would still be able to recover some, if not all their money after selling the flat to someone else. If they had lent him $240k, and they can only resell it at $200k, they would have instantly lost a lot of money. That’s how valuations came about.

What’s this all got to do with HDB prices? (more…)

How do I find a suitable Bank loan?

Monday, August 3rd, 2009

(Part of “The Almost Complete Goondu’s Guide to Buying a HDB Flat in Singapore” series.)

There are 3 ways basically, to finding a suitable Bank loan:

1) Ask your real estate agent

Agents earn a referral fee for bank loans, so if you like your agent a lot, getting him to refer you a loan would help him get some pocket money from the bank as well. On the downside, they might be incline to recommend loans from banks with higher incentives for them.

2) Approach the banks individually

This can be quite tedious really. Most banks don’t have their home loan packages online, and would require you to contact them personally in order to know about their loan packages. Even then, you might not get the lowest package, as they might push higher ones first.

3) Use a Mortgage Consultant service

Basically, you provide them the details (eg. buying hdb/private, loan amount, loan period) and they’ll contact the banks and source out suitable loan packages for you.

This service is free, as they are compensated by the bank upon a successful referral.

(in alphabetical order)
dollarDEX
Global Creatif Financial
Housing Loan SG
Home Loan Singapore
Money Mind
My Happy House

Personally, I’ve only used HousingLoanSG before, and have not tried the rest. We went with Approach 2, and did get the best available home loan then, and it’s still the lower than those being offered now.

    Approach 1

    We will work exclusively with clients to get the best housing loan package for them. We guarantee the best deal based on the client’s requirements. Beside the obvious interest rates, we also take into account other things such as legal subsidy, lock-in etc – basically the package as a whole. We will act as your single point of contact for all the lenders so that you don’t have to liaise with multiple persons. We require clients to be committed to refinancing through us for this method.

    Approach 2

    Some of our clients prefer to be more hands-on and approach lenders on their own. What we can do here is simply to see whether there is anything better than the lenders they have already approached. There is no commitment but there is also no guarantee on getting the best package for this approach.

    There are no fees that we charge as we are actually engaged by every bank and financial institution in Singapore to provide this service. If you have any queries, please feel free to contact me.
    Best Regards,