Investing in a house is definitely a must for parents. You cannot just keep on renting a house until you get old. We need to secure our children's future and buying a house is the best way to do it. Although it may seem really hard to do so specially if your current job does not really pay that well, as long as you are able to get a low mortgage rate, it can really pay off in the future.
A lot of people want to get the lowest mortgage rates here in Singapore. Aside from the fact that many foreigners are actually interested in being a permanent resident of the country, there are actually a lot of job opportunities here which makes some people move out to their current home and buy one that is near their office. Mortgage rates here in Singapore depends on various things - it can be because of the supply and demand, the amount of the loan or simply the current state of the economy. It is crucial for everyone who wants to purchase a house to do their own research to get good mortgages rates in Singapore. Here are some tips on how you can get a low mortgage rate effectively:
Term - You have to first decide on how long you want to pay the loan for. It can be a 10 year term, it can be about 25 years, it is all up to you. But a shorter loan term can definitely get you the lowest rate there is. This is because you can actually save a lot of money in the long run with a shorter loan term because of smaller interest rate that you will be paying periodically.
Loan options - You actually have a lot of options where you can get the loan that you need to purchase a house. You can work with a direct lender, regional bank, commercial bank, thrift institutions and even a broker that can help you find a lender. Ideally, you should consult all of your options and go with the one that can provide the lowest rate possible in a short loan term.
Down payments - It may be hard for some people to shell out money for down payments which is the most common reason why people try to stick with the lowest down payment that they can make to purchase a house. The problem is that if you are to pay the minimum down payment then you can definitely expect a higher interest rate for the mortgage. So as much as possible, you may want to extend your budget in terms of the down payment to secure a better mortgage rate.
There are other factors that must be considered with regard to finding a good mortgage rate. Ultimately, it all falls down to being able to utilize all of your resources in finding lenders so you can compare their rates and get the one with the lowest interest rate. There's really no harm on consulting various banks or lenders that can provide you different options. After all, what you will be paying in the long run is what really matters.