Everyone wants to live his or her own house. They want to live their life without the tension of landlord making their lives difficult or paying rent every month. People want a place for themselves where they can live their lives the way they want. They want to provide a safe haven to their families and kids. However, purchasing a home is not easy. Especially for those people who do not have any other property or valuable thing to sell for the house. The only source of income for these people is their monthly salary, which is good but they cannot purchase a house with it. Therefore, when these people think about buying a house, they turn towards home loans also known as mortgages. This happens in all over the world even in Singapore, people apply for home loan. However, in Singapore There are many types of home loans so that people can choose the perfect type according to their requirement https://easycredit.com.sg.
Fixed Rate Mortgages
These types of loan are for those people who want a fixed rate for a limited time period. This type of mortgage goes for 1 to 5 years. The interest rate for this loan starts from one percent of the total amount but the real interest rate depends on the amount of the loan or the price of the house. The interest rate will be charged with each installment and it will not change with any fluctuation in the economy of the word. That is why many people prefer this types of loan.
Sibor Pegged Mortgages
Singapore Interbank Borrowing Offer Rate or SIBOR let people know what the current percentage of interest prices is. People who are getting this type of mortgage needs to remain updated with the economy of the world. In this type of mortgage, the interest rates keep changing.
Board Rate Mortgages
This is the type of loan in which bank apply their own internal process to change the interest price but they keep that hidden and do not tell borrower about it. Some banks do not use this policy any more but there are still some banks that are using a standard universal Board Rate system for greater transparency. It is a fact that in this type of mortgage the interest rate cannot be stable but to keep clients happy, banks are doing their best to keep the rates stable.
Combination of Variable and Fixed Rate Mortgages
Some banks offer all these types of loan in one type, which is known as Combination of Variable and Fixed Rate Mortgages. In this type of loan, 60% of the loan will have fixed interest rates but other 40% loan will have interest rate, which will keep changing.
There are many money lender singapore too which are providing home loan. A person can apply through any licensed money lender. However, he needs to keep in mind that these companies have different policies and conditions. They also have different interest rates. The best thing is to search through different companies and select the best one.