If you are applying for a home loan or mortgage loan for the first time, it can really come off as a very lengthy and tiring process. Especially in Singapore where legal concerns related to real estate are very strict, you are looking at lots of paperwork and meetings despite which bank or financial institution that you go for. Therefore, it is always good to have a basic idea about what exactly you require to apply for a home loan. This way you can make sure you are fully prepared when you submit your application. While these requirements can be different from one financial institution to another and also depending on the loan amount, there are still general requirements which are usually common when applying for home loans.
Proof of income and employment
Similar to any other loan, you need to prove to your bank that you are financially capable of paying off the loan before they approve it. Generally, you need to provide your bank statements and pay slips of 3-6 months. If you have any other sources of incomes, mentioning them will give you a better chance of being approved with the best mortgage loan rate since you have proved your financial stability through them.
To make sure that you are a permanent employee who gets a steady salary from a registered company, you will likely need to provide a confirmation of employment from your employer if you have just joined the company.
Most financial institutions will ask you for at least 2 years’ worth of tax assessment details to determine your financial responsibility if you are self employed. Therefore, if you are thinking about applying for a home loan in the future, it is extremely important that your taxes are impeccably settled in order to be approved.
If you have any personal debts which are not directly mentioned in your credit report (including student loans, vehicle loans etc), they should be declared with the details of the creditor, due monthly installment amounts and also the outstanding amount due in each.
You need to provide your address and details of your current residence and also the residential history if you are not a Singapore citizen.
Before you have a meeting with your bank and start to compare home loan rates. In summary, the documents required for your loan processing are:
- Bank’s application form (print, complete the form and scan all pages with all applicants’ signature)
- Copy of NRIC (front and back) / Passport
- Income documents:
If employed: latest 3 months computerized payslip AND latest Income Tax Notice of Assessment, AND latest 12 months CPF Contribution History
CPF Withdrawal Statement Showing Principle And Accrued Interest Used
· All Latest Credit Card Statements AND Car Loan Statement
· Property Portfolio Page (www.iras.gov.sg -> Login using Singpass -> Select ‘View My Property Portfolio/Change mailing address” on left column -> click on the subject property address and save pdf)
· HDB Flat Details Page