Proper Steps for the Right Mortgage

It is the most sought loan, the longest and the one that allows us to reach one of our most important projects: to reach our own home. Here we show you 5 tips to keep in mind before accessing your mortgage loan

  1. Have in cash between 20% and 40% of the property.

Generally banks lend between 60% to 80% of the value of the house. For example, taking 70% for a unit of US $ 80,000. You must have $ 24,000 or the equivalent in pesos $ 97,200.

  1. Measure how much we can ask according to our income

The fees cannot exceed more than 30% or 40% of the total income. This table can help you as a guide to see which property you can access with your income or those of the family group. The help of the good mortgage broker in Singapore is there always.

  • Income for $ 6000, property of $ 43,000
  • Income for $ 8000, property of $ 58,000
  • Income for $ 10,000, property of $ 72,000
  • Income for $ 15,000, property of $ s108,000

 

  1. Look at the total financial cost (CFT) before the nominal rate of the loan

The share of a mortgage loan is generally composed of: capital + interest + life insurance + fire insurance + administrative expenses.

The CFT is what really reflects the cost of the loan. It is always very useful to request the simulation of the fees.

  1. The fixed rate option is the one with the shortest term and the highest fees

There are three alternative rates: fixed, variable and combined. What sets the difference between each one is the term and the value of the quotas.The fixed rate option will always be shorter than the variable. This makes us ask for more income to pay a higher fee. The use of the fast loan in Singapore comes easy.

Ex: to finance 70% of the unit of US $ 80,000 ($ 225,000), in the fixed option at a rate of 17.5% we would obtain a 10-year loan with a fixed fee of $ 4,100. The CFT (Total Financial Cost) would be 21% and we would need to demonstrate income for $ 13,600 to allow us to pay that fee.

In the event that we would like to finance we for a longer term, for example. 20 years, we should probably opt for the variable or combined rate. With these options you can access a higher amount and lower fees.Ex: the $ 225,000 could be financed at a variable rate of 16.4% to 20 years. We would pay a fee of $ 3,300. A CFT of 19.6% and income would be needed for $ 11,000.In the case of opting for the Combined rate. We would pay 3 years fixed installments of $ 3,200 at a rate of 15.9% and the remaining of $ 3,300 variables at 16.5%. The CFT in this option would be approximately 19.3%.