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“MoneySmart helped me to select the most suitable home refinancing package for my financial situation and requirements.”
David Lau
Chartered Accountant
Getting cash out of your property with a home equity loan is a great way to get much needed capital for your business or your investment portfolio.
Unfortunately, you might not be able to get as much as you need if you try getting a home equity loan on your own.
With the help of our knowledgeable Mortgage Specialists, you can be confident that you’ll be getting the highest cash out amount at the lowest interest rates.
What is your property type?
The difference between the two is that an equity loan helps you tap into the value of a property that has been fully paid for. A term loan helps you do the same for a property that has not been fully paid for.
If the value of your property appreciates greatly, banks will be more agreeable to lending you more money – because your home is used as collateral for a home equity or term loan. These loans are an easy way to free up extra cash at a low prevailing mortgage interest rate so you can strengthen your investment portfolio, start a business, or handle a financial emergency.
Let’s say the property you purchased in 2008 at $500,000 is now worth $900,000. With a home equity or term loan, you can now borrow anywhere from 70%-80% of your property’s current market value, minus any remaining loan amount or CPF used.
Only private properties, not HDB flats, are eligible for home equity or term loans. Also, the current market value is determined by the loaning bank, but we can get the valuations and help you find the lowest interest rate.
The tenures for home equity and term loans are typically 75 years minus your current age, minus the total number of years spent servicing your home loan. However, banks can differ in how they calculate tenures.
So your total amount you can borrow depends on this equation:
A minus B minus C = the total amount you can borrow for a home equity or term loan.
Banks are always revising their interest rates. But MoneySmart compares interest rates among Singapore’s top banks to find you the absolute lowest rate available.
What is your property type?