Equity loan Singapore, Home Equity loan Singapore
What is a cash out / equity loan?
Equity loans, commonly known as ‘cash out’, refers to obtaining additional funds from a property. For example, if a property is fully paid up, the owner may choose to re-mortgage it with the bank for a loan. The bank will assess the property and grant the loan accordingly.
How much cash out can I get from my property?
You can obtain up to 80% of the value of the property. For example, if the value of the property is at S$1,000,000 then the maximum amount of equity loan is S$800,000. Consider the same scenario with an outstanding property loan of S$300,000 on the property, the maximum amount of equity loan would then be S$500,000*
The minimum loan amount is S$100,000
What should you know before applying for a home equity or term loan?
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.