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What Influences Your Home Loan in Singapore
Many individuals often worry about the initial financial outlay when it comes to buying a home. The substantial amount required as a down payment can be daunting, prompting borrowers to inquire about their maximum loan capacity. offers a strghtforward guide on how mortgages function in Singapore, catering to both first-time buyers and seasoned homeowners.
Understanding Loan-to-Value LTV Ratio
The Loan-to-Value LTV ratio indicates the maximum amount you are eligible to borrow agnst your home's value. For instance, an LTV of 75 means you can secure up to that percentage of the property's worth in financing.
Should the purchase price exceed the valuation, there arises a Cash Over Valuation COV. This is the discrepancy between the two figures that needs to be pd upfront in cash to the seller. As of December 16th, 2022, the maximum LTV for HDB loans has been reduced from 90 to 85. Bank loans on HDB properties still mntn a cap at 75, while others are capped at 80.
Affecting Factors and Strategies
Your ability to secure the full loan-to-value ratio is influenced by several factors, including your creditworthiness, income stability, payment history, and debt levels. Improving these aspects can increase your chances of securing a higher LTV.
Credit Card Management: Ensure timely payments in full and minimize usage.
Credit Card Count: Reducing the number of active credit cards, especially those you rarely use, can boost your LTV capacity.
In-House Car Loans: Switching from mnstream banks to an in-house car loan option might increase your loan amount if you're currently repaying a car loan externally.
Boosting Your Chances
Credit Card Clearance: Regularly clear outstanding balances on your credit cards promptly to improve your credit score and reduce debt-to-income ratio.
Deactivate Non-essential Cards: Cancel inactive or rarely used credit cards to streamline your financial profile.
In-House Car Loans Swap: Consider transferring any existing car loans to in-house financing options for a potentially higher loan amount.
In Summary
When purchasing a home or investment property, careful financial planning is paramount. Leveraging bank loans as part of the acquisition process requires thoughtful consideration of your current financial standing and future goals. An unbiased consultation with a professional can provide you with tlored advice that suits your needs.
For further insights or assistance, don't hesitate to contact me via WhatsApp or Eml. Let's work together towards making informed decisions in your real estate journey.
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Singapore Home Loan Maximum LTV Ratio Impact of Credit Score on Mortgage Strategies to Increase Loan Amount Simplifying Financial Profile for Loans Switching Car Loans for Better Offers Expert Consultation for Real Estate Decisions