Flexible Payment Schemes
Buying a property can be a significant investment, and it’s crucial to choose a payment scheme that suits your financial capabilities. One of the payment schemes available in purchasing a unit in Lentor Modern is the progressive payment scheme. Want to know more about the subject covered? Investigate this comprehensive content, in which you’ll discover additional data and engaging viewpoints to enrich your educational journey.
Under this scheme, buyers make payments progressively based on the construction stages. The payment will start from a minimal amount, commonly around 5% of the purchase price, upon signing the option to purchase (OTP). Subsequently, payment will increase by 5-10% for every milestone stage completion.
Lentor Modern also provides a deferred payment scheme where buyers pay a stipulated amount upon signing the OTP and delay full payment until the project is completed. This scheme eases the burden of the initial capital and provides buyers with more time to arrange for financing.
Government Schemes and Grants
The government also provides several housing schemes and grants to help lower-income buyers in purchasing a property. These grants and subsidies are available to eligible buyers of various income brackets.
Assuming the buyer is a first-time homeowner, he or she may be eligible for the Enhanced CPF Housing Grant (EHG). The EHG provides up to $80,000 in housing grants to eligible first-time buyers who meet the income and other criteria. Apart from EHG, buyers who purchase homes under schemes like Family Grant, Proximity Housing Grant, or Half-Housing Grant may also benefit from similar housing grants.
Conversely, for those had purchased a flat before, the Resale Levy will be imposed as a means of de-incentivize furthering over-reliance on public housing. One may check the payable amount through HDB resale levy portal to have a better understanding of the amount payable.
Bank Loans and Interest Rates
Most buyers in Singapore finance their property purchase through a bank loan. During the financing process, buyers will have a Loan-to-Value (LTV) limit, meaning the maximum amount the bank can loan to the buyer, based on the purchase price and appraised value of the property.
The interest rates of Bank Loans in Singapore vary and depend on factors like the loan amount, property type, tenure, and prevailing market conditions. It’s crucial for buyers to compare interest rates among banks and seek independent financial advice to make an informed decision.
Buyers who opt for a bank loan also need to consider the Monthly Instalment (MI) Payment that consists of Principal and Interest components. In general, borrowers aim to strike a balance between the MI payment and LTV limit while taking advantage of the most competitive interest rate offered.
Conclusion
There are various payment schemes and financing options available in purchasing a unit in Lentor Modern, and the selection will depend on the buyer’s financial standing, eligibility criteria for government grants, and market conditions. Hence, it is advisable for buyers to engage a professional and licensed real estate service provider for better insights into pursuing their homeownership goals. Eager to learn more about the topic? Lentors-modern.sg, we recommend it to complement your reading and expand your knowledge.
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