When you are living in Singapore, you might have heard about the HDB loan. And, you are wondering if you should get this loan or if you should rather apply for a bank home loan.
This can be a hard decision if you don’t know the difference between them and know which option is going to be better for you and your family. This is why you should know the difference between an HDB and a bank home loan.
Requirements for getting an approved HDB loan
An HDB loan is also known as the housing and development board. This is a valid way to get a home loan when you are living in Singapore. However, there are some requirements that you need to know before you apply for this type of loan.
- One family member needs to be a Singapore citizen.
- The interest rate starts at 2,7%, which is higher than a bank loan.
- You may not own any private residence in any country, including Singapore
- You may not get a monthly salary that is higher than $12,000
- This is only a loan that you can get for buying an HDB flat.
Requirements for getting an approved bank loan
Many don’t like applying for a mortgage loan at a bank, because of their high requirements. However, if you don’t qualify for an HDB loan, then you might want to consider a bank loan. These are some requirements for getting an approved home loan at a bank.
- You can own more than one private residence in the world
- Interest rates are lower but normally is a flexible interest rate loan.
- Your salary doesn’t need to be so low before you can apply for a loan. You need to have a minimum salary in order to qualify for a loan.
- You can’t borrow as much with a home loan as with an HDB loan.
Should you get an HDB loan or a bank loan?
Which option is best to get? The HDB loan or the bank loan? If you qualify for the HDB loan in Singapore, this is the one that you might want to consider. This is easier to get approval and the down payment isn’t as much as with a bank home loan.
However, not everyone qualifies for this loan, and then you need to consider a bank for your mortgage loan. Or, you should consider a private lender.
Now, you have a better idea about the difference between the HDB loan and the bank loan. Making it easier for you to choose which one you should apply for when you live in Singapore. The HDB loan is strict and you will need to buy an HDB flat in order to qualify for this type of loan.