5 Important Loan Steps for Buying a Flat in Singapore You’ll Love

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If you’ve ever thought of buying a flat in Singapore, there are a few things you should know first.

Singapore is an amazing place to live.

With a highly educated population, low crime-rate, and good climate, it’s ideal in many ways. Most importantly, it’s a city-state that warmly welcomes ex-pats.

Find out what it takes to get a loan for a flat, below.

buying a flat in Singapore
Buying a flat in Singapore

CONTENTS – In this article, we will give you some tips about buying a flat in Singapore, including:

Getting A Loan For A Flat In Singapore In 5 Steps

Deciding on how to finance a flat in Singapore is a crucial question a person will ask when buying a property.

While a small percentage of buyers could likely afford to pay for a house outright, that may not be you.

So, you will have to look at alternative, common home purchase routes.

One of the most common ways to buy a house is by getting a loan.

Obtaining a loan can be a time-consuming task. It can take a lot of preparation and waiting for the approval.

When you’re be looking to purchase property in another country, you’ll have to learn how to navigate the loan process in place in that country.

For instance, Singapore’s property market is currently booming.

Choosing to purchase property in Singapore is becoming a popular choice among investors and those looking to move.

So, if you are looking into buying a flat in Singapore, here are a few steps to help you get a loan and secure your ideal property.

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1. Speak With Professionals

The world of loans and purchasing property can be confusing, especially for those who have yet to step foot on the property ladder.

And when you’re buying out of the country, you’ll want a bit of guidance.

You’ll want to seek professional advice from experts like PropertyGuru when looking to get a loan.

The support they provide can help you navigate your way through the obtaining loan process — which can sometimes be confusing and overwhelming.

Additionally, they can help you compare home loan rates until you find the right one.

Comparing the different loan rates will help you in your decision-making.

You can compare the different rates quoted to you and see the advantages and disadvantages of each one.

Having this selection of options to choose from can help you in finding the best rates available.

2. Decide On The Type Of Loan

Next, speak to professionals about the type of loan you should take out.

Your lender might suggest an HBD loan when purchasing a flat in Singapore, as it allows you to borrow up to 85% of the property’s value. (HDB flats are public housing in Singapore.)

To obtain an HBD loan, some factors will influence your eligibility.

Your age, income, and financial situation are the three deciding factors that could determine whether or not a lender will grant you your wish for a loan.

Before applying, it is worth checking to see your chances of obtaining an HBD loan.

If you know your chances are low, you can prepare yourself for rejection and start the search by looking for other loan options.

However, if your chances are high, you can begin to look ahead to the future and plan how you will progress when finding a flat.

Aside from an HBD loan, you could also look at a bank loan to help you cover the costs of purchasing a flat in Singapore.

A bank loan might let you borrow up to 75% of the property’s value, which is 10% less than an HBD loan.

It is worth spending time weighing up the pros and cons of each one.

This will help you decide and choose the right loan for you.

3. Plan for Additional Fees And Charges

When preparing your finances, you’ll want to ensure that you set aside funds for additional costs.

That’s because it is likely that when obtaining a loan for buying a flat in Singapore, you will have to pay additional fees.

These extra fees and costs often come as a surprise, and sometimes buyers are not prepared to cover the expenses.

Don’t let this be you!

So, as you save for your deposit, ensure that you save an additional amount for these fees.

Some of these costs could be for legal documentation or property valuation fees.

Note that property valuations and speaking with a conveyancing lawyer are mandatory when applying for a loan in Singapore.

The money saved can cover the costs of organizing these mandatory factors.

After you have successfully obtained a loan and all additional fees have been paid for, you can use any of the excess savings for costs to help turn your new flat into a home.

Of course, you could also save it for any costs for repairs that might come through in the future.

After finding the right loan to help you buy your flat in Singapore, you can begin the search for a flat.

Consider the area in which you wish to live.

If you are commuting to work, you might want to find somewhere that has strong transportation connections. Then you don’t have to drive to work.

Additionally, you may wish to be somewhere close to work, so you have a short commute.

Aside from commuting to work, you will likely want to move to a safe area of Singapore, especially if you are moving with your family or living alone.

Use online guides to help you find the best areas to live in Singapore.

These helpful guides could help you save time searching for your flat.

When you find your flat of dreams, you can use your loan to help finance the costs involved in purchasing the flat.

5. Relocate to Your New Singapore Flat

Now that you’ve secured the funding, found a flat in Singapore to buy, and sealed the deal, the final step in buying a flat in Singapore is the move in.

Once purchased, you can begin planning your moving date and turning your flat into your home.

Final Thoughts on Buying a Flat in Singapore

With these tips on buying a flat in Singapore, we hope we’ve simplified the process for you. Best of luck on your home search!

Jackie Gately at the beach

About Jackie Gately, editor-IN-CHIEF

I'm Jackie Gately, your travel confidante and the creative force behind Enjoy Travel Life, awarded the "Best Casual-Luxury Lifestyle Blog (USA)" in Travel and Tourism by LUXlife Magazine for four consecutive years.

With 25 years of published expertise, I'm a seasoned writer, editor, and photographer curating inspiring travel guides and lifestyle tips for empty nesters. I hope to kindle your spirit of exploration, encouraging you to overcome obstacles and turn your dreams into reality.

Learn to minimize your pre-travel angst and maximize the joy of exploration with insights from my experiences. Let's make every adventure a celebration of this exciting phase of life! 

Follow my social channels for more inspiration.

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