Clarify your doubts here
Frequently asked questions about Home Loan Whiz
General Homeloan 101
What is Home Loan Whiz?
Home loan Whiz is a FREE mortgage consultancy service based in Singapore that aims to help you find the best mortgage home loan in the market, saving you time and up to thousands of dollars$$$ in the process.
We pride ourselves by our 3R guiding principle.
Reliable - Always putting ourselves in your shoes, we will handhold and guide you through the entire loan process, resulting in unbiased recommendations and a satisfied client.
Resourceful - We are constantly up to date with the latest rates and market news to provide you with the optimal solution
Responsive - We respond promptly to all your queries and our closely forged relationship with quality bankers enables us to get things done effectively
What makes Home Loan Whiz Unique?
Loans can be complex and confusing. At Home loan Whiz, we strive to educate and guide you along so that you will be able to make the best informed choice.
Most people finance their home loans by referrals from their agents or directly with the bankers. These people, being commission driven, would sometimes be biased toward certain products they are representing, which might not be in your best interest.
Home loan Whiz works with almost all banks in Singapore. The banks pay us a small fee for referring cases to them. This is why we are able to provide you with free and unbiased views.
Shopping around the banks for the lowest rate is a very time consuming activity, Our close ties with the banks enable us to have access to all the latest rates at our fingertips, saving you many hours of your precious time. Being the experts in this field, we also keep ourselves updated with the latest market news and regulations to be able to better advice you.
Do I need to pay to use Home Loan Whiz
No, it is absolutely free of charge. The banks will remunerate us directly for every successful referral.
Infact, if you refer someone to us and that person signs a loan package, we will pay you a referral fee as well. Contact us for more details
Why should I go to Home Loan Whiz when I can go to the banks myself?
When you walk into a bank, the banker will only be able to recommend you the products from his bank, even though there might be cheaper alternatives around with better terms. At home loan whiz, we can tell you which banks are offering the lowest rates. However, if you have decided on a certain bank, we can put you in touch directly with a banker from that bank. Our bankers are carefully selected over the years and have proven track record of providing excellent service to our clients.
How do the banks determine my eligibility for a house loan?
Each Bank has their own assessment system.
In general, the factors below will determine whether you are eligible to loan and how much you can loan.
Common factors they take into consideration are
How much can I borrow?
Different banks have different credit approving guidelines but a good indication would be that your total monthly installments outflowing should not exceed more than 50% of your monthly income.
Banks will often use a much higher interest rate tier to compute your loan installment. CPF ordinary account contribution will also be added to your income.
Example,
Mr Tan earns $5000 a month and contributes $1000 a month to CPF ordinary account.
He owns a car and pays $1500 installments monthly.
The maximum monthly home loan installment(X) he can pay is $X+$1500-$1000 = 50% of $3000
If you find this a little complicating, please do not hesitate to contact us for an assessment.
What are the stages of processing a loan?
Once you have decided on the package, an application form for housing loan, together with all the relevant documents are submitted to the banker for processing. The bank will then decide on how much loan and loan tenure to grant you and come up with a Letter of Offer(LO). This letter usually takes about 1 week to generate, depending on bank and complexity of case. The banker will explain all the terms and conditions of the loan and the document will be signed by you if agreeable. Once signed, it is legally binding. The bank will then issue a Letter of Instruction and get an appointed law firm to act on their behalf. Some lawyers on the banks panel can act for both the bank and you, the buyer. Saving double legal fees. Do consult us for this group of panel lawyers.
What documents are required for a home loan application?
If applying for Refinancing, additional documents required are
Government regulations
Is HDB Mortgage Insurance compulsory?
HDB Mortgage Insurance, also known as Home Protection Scheme (HPS) is compulsory if you are using CPF monies for your HDB Flat. A waiver can be granted if you have alternative mortgage insurance provided by other private insurers. Mortgage Insurance for private property mortgage are not compulsory but comes highly recommended for you and your love ones in the event of unforeseen circumstances.
If you require assistance on this, our consultants are happy to point you in the right direction.
Can CPF monies be used to pay for stamp duty when purchasing a property / EC property?
Yes. However, as it may take a while for CPF Board to release your money to pay for your stamp duty, you may need to pay first using cash to avoid any late penalty charges.
I have a private property that is fully paid up, how much can i remortgage it for a loan?
You can remortgage and take out up to 80% of the valuation amount whether you have an existing loan or it is fully paid up. This will depend on a few factors.
The bank, whether it is your 1st or 2nd mortgage, CPF monies owed, your income level. Do contact us and we can better advise you.
My HDB property is fully paid up. Can i remortgage it back to the banks for a loan?
No the government does not allow this
What can I use my CPF monies to pay?
CPF monies from your ordinary account can be used for partial payment for the property, including land and construction cost of the house. It can also be used to pay for stamp duty, mortgage fees, legal fees, monthly mortgage instalments, HDB upgrading fees.
However, it cannot be used to pay for Conservancy charges, repair and renovation works, and also the cash portion of the property purchase. CPF ordinary account funds can be used to pay up to the withdrawal limit. The withdrawal limit calculator can be found on the CPF website http://www.cpf.gov.sg/cpf_info/calculator/vl/vl_input.asp
.
