Are you planning to get yourself a residential loan? Not sure how exactly are you going to get your loan? Well, residential loans have become one of the most popular types of loans, and thousands of people worldwide are opting for residential loans to be property owners. These are low-interest loans and come with easy payment options. So, if you are looking forward to buying a house of your own, you should utilize this opportunity to your full advantage. So, here we are with some of the criteria that you need to fulfill before getting your Residential Loan:
The amount of residential loan you will be eligible for will depend on many factors like your income, credit score, tenure of the loan, etc. One of the biggest factors is income. However, you can also show your spouse as a co-applicant for the loan. This is going to improve your chances of becoming eligible for the loan. You can also increase the tenure of the loan as it can lower the monthly EMI.
Rate of interest:
Before you approach a particular bank for a residential loan, you need to check the rate of interest. Different banks offer different rates of interest on residential loans. Also, the rate of interest may change after a specific span of time. This is especially true if you opt for a flexible residential home loan interest. So, you need to consider the rate of interest as well and opt for the loan accordingly. The rate of interest may also depend on the factors like tenure of loan, amount of loan, and much more. It would help if you also chose to go for one such bank that is offering the loan at a lower rate of interest.
Impact of credit score:
Your credit profile has got a big role to play in determining your eligibility for the loan. If you have got a really good credit score, then you may be given the loan at a lower rate of interest. You will be able to get your loan in a really easy way. A good credit score is also an indication of how well you manage your finances. So, it is very important for you to ensure that your credit score remains high at all times.
Most banks will offer you 80 to 90% of the value of the property that you wish to buy. The remaining balance will have to be arranged by you from your own source of income. This money will have to be paid as a down payment. So, you should proceed with the loan only if you are able to pay the down payment. In ideal situations, it is advised that you pay the maximum down payment. This will help you to avail a lower loan amount, and your interest person will also be lower.
And this is how you can get your residential loan. For more details on OCBC business loan, contact us.