How to choose a home loan package

Congratulations! You have already taken the first step by reading this posting! It will probably help if you read some of my other postings too! By landing here, you are probably already thinking that the internet is gong to help you in finding the right home loan package. If you notice, i have a Home Loan Rates link on the top right hand side which is grossly outdated but is still attracting visitors (about 250 visits per month). Let me share with you the website you should go to for the latest home loan rates.

Disclaimer: i am in no way affiliated with this website, nor am i getting any kick-backs for bringing you there (which, to be honest, i am a little reluctant to promote any other website for free). Here’s the site: http://www.smartloans.sg/

You basically get the latest home loan rates from all the major banks in Singapore in a few clicks, literally (tip: you can stop at the point when you see the chart). With this “comparison platform” (i would like to call it a “competition platform”), you probably just have to look at the top 5 results and choose one. Here’s a tip on reading the results: the list is sorted in descending order of “Total Interest”, which is for the entire loan period (typically 30 years). However, you will never stay in the same loan package for more than 3 years (2 years in fact, there are very few 3 year packages as banks realize people are less willing to be locked-in for 3 years nowadays), so just look at the first and second year monthly installment/rates (click on the “Rates” tab). The one with the lowest first and second year (if you opt for 2 years lock-in) installment/rate is the one to go for.

If you’re looking for fixed-rate loan packages, the choice is a NO-BRAINER, since what you’re paying is FIXED for the lock-in period you sign up for, so just go for the loan package that cost you the least interest for the 1 or 2 years, and there will be no fluctuation in interest rates to affect the outcome.

Anyway, all the best to your home loan hunting, and here’s wishing you save lots of money.

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