What factors/things to look out for when choosing a home loan?
A home equity loan helps to avoid the stress of creating liquidity to finance your home. However, the key is to choose a home loan that suits you. Here are some key factors to consider when choosing a home loan:
Choose a trusted lender: Choose a trusted lender who has experience in supporting homebuyers not only in terms of financing their home, but also assisting them in buying a home and related technical matters such as checking property titles, builder’s credibility, ensuring proper permits have been obtained, etc. .
Check your loan eligibility: Home loan providers typically finance a maximum of 75% to 90% of the property’s price. The balance, i.e. 10% to 25% of the price of the property, must be paid by the borrower as a deposit. The loan amount would depend on various factors like your age, income, other liabilities etc. To help you assess the loan amount you are eligible for, you can use our loan eligibility calculator
Check the loan terms: Read the loan documents carefully to ensure that you understand the loan terms, which include the loan tenure, interest rate, other charges, EMIs, etc.
By being diligent, you can make home buying a smooth and joyful experience.
