Truest Deals for the Proper Mortgage Loans Now

Everyone wants to get their home loan as cheaply as possible, but that is not possible without thorough preparation.We list five things you need to concentrate on.

The interest

The interest rate is of course the most obvious point to negotiate. There is also great savings to be made immediately. Even an interest rate difference of just 0.1% already represents a big saving. We take the example of a loan of 150,000 dollars with a term of 20 years. At a rate of 1.9% you pay a total of 180,141 dollars to the bank. On the other hand, an interest rate of 1.8% immediately yields a saving of 1,660 dollars. Try to push the interest as much as possible down and save thousands of dollars. At the good at mortgage loan Singapore you will find the right deals.

The term

The term of the loan is a double-edged sword. The shorter the term, the less interest you have to pay in the end. At the same time, the amount of the monthly repayment is higher because you have to repay the borrowed amount over a shorter period. Convince the bank of a longer term if you do not feel comfortable with the monthly payment. Let’s say you lend 300,000 dollars to 2%. With a term of 20 years, you pay 1.515 dollars per month to the bank, compared to 1,269 dollars with a term of 25 years. Note: in the latter case you will pay an additional 17,057 dollars in interest at the end of the journey. Also keep in mind that banks generally offer lower interest rates for shorter maturities.

Mandate

Banks will require that a mortgage be established to protect themselves against the risk of default. That is the guarantee in case you would no longer pay off the loan. But it is not always necessary to establish a mortgage for the entire amount of credit. Try to convince the banker to work for as large a part as possible with a mortgage mandate. After all, in contrast to a mortgage registration, no mortgage and registration fees are due for such a mandate. That can therefore be a great saving. Just make sure that there is just enough of a mortgage to take full advantage of the tax benefit of the housing bonus. The most trusted money lender in Singapore is also available now.

Insurances

When banks put their ‘bottom rate’ on the table, they will usually require you to take out a fire and debt balance insurance policy with them. If you are not paying attention, you will be saddled with expensive insurances that melt away the benefit of lower interest rates. For example, a recent survey by Spaargids.be shows that the policies offered through the bank are a lot more expensive than the cheapest offer on the market. In a number of cases the insurance premium is even greater than the benefit of the discount on the credit.

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