A housing Equity Loan refers to a way to borrow money using the equity in your home as collateral. Unlike loans against other types of property, you are borrowing against the equity in your own house, without actually taking ownership and without the requirement of making any repayments.
Benefits Of Housing Equity Loan
1. Loan Type
Housing Equity Loans are not secured loans and therefore are not required to be registered in the Personal Property Securities Register (PPSR). If this type of loan was used as a second mortgage, it would also not be registered in the PPSR.
Interest paid on housing equity loans is tax-deductible, unlike other types of loans in which interest payments are not tax-deductible.
3. Easily Available
Housing Equity Loans are easily available as they are a very common type of personal finance today, making them one of the most popular forms of financing among homeowners in Singapore.
4. No Closing Costs
Closing costs are not applicable in housing equity loans.
5. Flexible Loan Amounts
Housing Equity Loans allow you to borrow a flexible loan amount ranging from S$0 to $25,000 and up to S$10 million.
6. No Fees/Documentation Fees
Due diligence fees, application fees, and other things like this will not apply when applying for a housing equity loan.
7. No Collateral
As your home is the collateral for your loan, you do not have to make repayments and you do not lose control of the collateral security.
7. Additional Security
If you wish to use additional collateral, such as a mortgage on an investment property or a second mortgage on your home to secure your housing equity loan, you may do so with most lenders.
8. Quick Approval
A Housing Equity Loan can be approved in as little as two working days. It usually takes two working days for a housing equity loan to close.
The Housing Equity Loan is a very popular form of financing because it allows you to borrow money without having to give up the equity of your property. There are many benefits to a housing equity loan. You can learn more about it by visiting any of the trusted housing equity loan lending institutions.