Taking a loan to pay for a property is one the biggest challenges faced by every human being looking to set shop as an independent and functional member of society, many people can’t handle the pressure given their lack of knowledge about loan products. Most of them are poised to make quite a few mistakes as they learn how to deal with all the obstacles that come their way as they search for their number one property.
It’s safe to say that every case regarding loan management is closely tied with the financial habits of the person taking it, thus making the issues tied to each loan something unique. Still, it’s a good thing that a number of factors out there that fall on the spectrum of general occurrences that affect borrowers. Over the next few lines, we’ll be offering a few steps you can take to make sure the overall cost of your loan doesn’t overtake your ability to pay it back. Let’s read on:
Study Various Options of Loan Rates and Look for Low Interest
In a nation of property owners such as Singapore, banks are always willing to take the business of anyone looking to finance a property, but most of them are managed to follow a different set of rules. While some banks just need to cover a designed quota for a financial period, others are looking into covering a wider spectrum of the market. One thing is certain: there is no single advantage in taking a high-rate loan. Always aim for reasonable and manageable on your terms, not the bank.
Don’t fall for Teaser Rates
Many banks and loan services make deceiving offer with low rates that last from 3 to 4 years and then get an increased spike after that time. The best you can do for your financial health, in the long run, is looking for the real terms of the deal in the fine print and negotiate a fixed rate for the term of the loan on your number one property.
Consider a Short Loan Tenure
The hard fact about short-term loan tenure is that the monthly payments will be hard on your pocket. But if your financial projections are solid you will be able to cover the payments easily as you increase your income. Another deciding factor to embrace short-term loans is to save a lot of money on interest rates. The math can be cranked out by your real estate agent, but you can end up saving an average of nearly 65% of the total amount of money paid on interest alone if you take a loan on a 20-year term rather than one covered in 25.
Look for a Well-Reputed Up and comer Team to handle your Transaction
This equation is a hard one to manage, but given the fact that every day a new player is looking to enter the very competitive market of real estate properties in Singapore you can save some money by going with a middle level firm to handle your business as well as a legal team that have just the right amount of experience and reputation to help you reach a successful deal in accordance with your expectations to acquire your number one property.