Interest-Only Mortgage Loans in Singapore
Interest-Only Mortgage Loans
Take advantage of an interest-only mortgage loan, which leaves you with only the interest to pay each month.
Minimum
$100,000
Loan Amount
Up To
70% Financing
Loan Quantum
As Fast As
7 Days
Process & Approval
Within
1-2 Weeks
Loan Disbursement
In what circumstances would someone consider taking out an interest-only mortgage loan?
They may be looking for additional investment, require quick cash, intend to expand their business, pay off a huge debt, or maybe selling or refinancing soon, or may expect to make more money before the interest-only period ends.
What is an interest-only repayment mortgage?
An interest-only repayment mortgage is a loan that allows you to make only interest payments for a short period of time for your home or commercial property. The main advantage of an interest-only repayment mortgage is that you can enjoy low monthly payments.
What is the difference between a traditional home mortgage and an interest-only mortgage loan?
Compared to a traditional mortgage, an interest-only mortgage requires a smaller monthly payment that only covers the interest component. On the other hand, traditional loans are amortized - each monthly payment covers a portion of the principal and interest.
Benefits of Interest-Only Mortgage Loans
Interest-only mortgages offer so many benefits, especially if you have an irregular income and want to lower your monthly payments. Listed below are a few other benefits that it offers.
Monthly payments are lower
Compared to traditional mortgages, your monthly payments are typically lower since you're only paying interest.
Increase cash flow
By lowering your monthly payments, you can save a huge amount of money each month.
Can be paid off faster than a conventional loan
A lower principal can result in a lower monthly payment if you are making extra payments on an interest-only mortgage loan. In conventional loans, extra payments can reduce the principal, but not the monthly payments.
Interest rates are typically lower
Mortgages of this type are typically adjustable-rate loans, which generally have lower interest rates than fixed-rate loans.
Savings can be budgeted and invested
Having an interest-only mortgage allows you to budget and save on your mortgage repayments. The savings you're making could be put towards an additional investment.
Keep costs low
Managing expenses can be easier with an interest-only loan if you have an irregular income.
Difference Between Traditional Repayment and Interest-only Loan Mortgages
Repaying your mortgage can be done in two ways:
- Traditional Repayment
- Interest-only
In a traditional repayment mortgage, you repay a small portion of the loan each month, along with interest. At the end of the term, you can repay the loan in full if you make all your payments.
In the case of an interest-only mortgage, you are only required to repay the interest on the loan. After the term is over, you will still owe the original amount borrowed.
In general, the main advantage of paying a mortgage on an interest-only basis is that your monthly payments will be much lower.
An interest-only mortgage can make a mortgage more affordable. Nonetheless, in this case, you would still owe the lender the principal at the end of the loan term. A traditional epayment mortgage would leave you with nothing to owe the lender at the end of the term, and you would own the property outright.
Get Expert Advice on Interest-Only Mortgage Loans
Having trouble understanding Interest-Only Mortgage Loans? Get some answers and a free in-depth consultation with a Mortgage Advisor. We would be more than happy to assist you and provide you with the information you require about Interest-Only Mortgage Loans.
Interest-only Mortgage Loans Are Available for the Following Properties:
Home Properties
Commercial Properties
Industrial Properties
Retail Properties
Interest-only Mortgage Loan Process
Find out how much you need to loan
Determine how much you will need to borrow for your mortgage.
Submit your application
Select the type of mortgage interest-only mortgage loan package you need and submit your documents.
Wait for our letter of offer
As soon as your interest-only mortgage loan is approved, you will receive a letter of offer from us via email.
Accept our loan offer
Review our loan offer and the terms and conditions and accept it if you agree.
Calculate Interest-Only Mortgage Loan Repayment
Estimating your principal and interest rate is an important step in calculating an interest-only mortgage loan. In calculating, only three factors must be considered: the interest rate, the property price or principal, and the tenure of the loan.
Disclaimer: Interest rates on Interest-only Mortgage Loans are estimated and may vary depending on credit assessment and loan amount. Please note that this Interest-only Mortgage Loan is only intended to provide you with an indication of your possible monthly repayment commitments. The figures presented are not warranted to be accurate, complete, or adequate. Neither PropertyMortgageLoans.sg nor any of its affiliates are responsible for any errors or omissions.
An Interest-Only Mortgage Loan Support Service at Your Fingertips
With PropertyMortgageLoans.sg, a dedicated and knowledgeable Mortgage Advisor is at your fingertips at no additional charge. Get answers to your interest-only mortgage loan questions, learn more about what financial packages are available, and contact us whenever you need assistance.
