My first time engaging in loans. I would like to check if anyone can let me know which bank has the lowest interest rate for home loan. Generally, what is the preferred number of years for a home loan. 40 yrs to pay or 20 yrs? (longer or shorter years?)
POSB, UOB & Standard Chartered where the banks that give their offers, any idea which bank most people choose? thanks in advance guys!
1. To compare the rates offered by different banks, just go to all the different bank websites like DBS, UOB, Maybank etc. They will list their latest promotions for private properties. You can also use their financial calculator to work out the amount to be paid each month by inputting the data of loan amount and length of loan (tenor).
2. The tenor or no. of years for the loan depends on your age. Each bank has their cut off age. eg. 65 years for most banks. If you are 25 years now, you can easily stretch your loan up to 30 years. Of course longer years means more interest to pay.
3. At the end of the day it all comes back to your abilities to pay up the monthly mortgages. Work out your sums carefully as to Not Overly commit yourself.
4. When you compare the rates for each bank, also note the amount of cash back, or lock – in period, penalty period, legal subsidy as well.
5. As the interest rate is falling at the moment, it is a good time to shop for the lowest competitive rate.
6. In my opinion May bank is offering the lowest rate at the moment.
7. Happy shopping. GBU!