When it comes to the issue of homeownership in Singapore, things aren’t as simple as one might think. Not to mention, property prices are expected to surge in the coming future. Soaring costs for personal space will translate to you having less cash-at-hand to afford a stylish makeover for your hard-earned abode.
Nonetheless, it never hurts if you could source for financial assistance to add life to your home through remodeling. New homeowners would be pleased to know that sourcing for a renovation loan in Singapore from banks to cover costs is one way of financing their project.
However, before approaching one, we will share 3 tips to applying for a renovation loan that we deem to be important.
1. Establish an excellent account history
An account history is construed as the relationship between the financial institution you intend to seek a loan and yourself. For instance, having your salary paid via an account with the bank or having a checking account with them is one way of creating good history. Utilizing the available facilities in a responsible way such as not missing payments or refraining from over-drawing builds a great history.
An exceptional account history not only aids in getting a loan approval, but it guarantees that you benefit from the best possible terms for a loan, such as lowered interest rates.
2. Research before committing
Gather as much information as possible before making up your mind to apply for a renovation loan. Meaning that information about the various rates of interest along several lending institutions must be at your fingertips. Also, have a deep understanding of the standard terms and conditions applicable to the remodeling loan. This means researching broadly before narrowing down on excellent choices.
It’s recommended that you consult an employee of the institution well-informed about matters to do with loans. A bank manager, for instance, can dissect for you the terms and conditions of a loan.
Bear in mind the research process is meant to help you determine the best possible deal to meet your needs.
3. Keep an eye on market conditions
The market is a good barometer when loan applications are more likely to get approved. The volume of credit available is dependent on the performance of the market at a particular time. In times of economic boom, the market is stable, and consequently, credit is far readily available and at reasonable rates.
By opting to submit your loan application at the right time, the chance of approval is far higher as compared to times of recession. Moreover, you are assured of favorable loan terms and interest rates.
Bottom Line
Getting your loan approval in Singapore is a matter of preparation. Acquiring the right information and approaching the right institutions stems from proper preparation. It’s advisable to seek assistance on more complicated aspects such as Total Debt Servicing Ratio (TDSR) calculations. Employees in lending institutions are a superb resource if used appropriately.
Seeking guidance in understanding requirements is highly encouraged. Observing the above tips will ease the process of loan application and approval.
