An in principle approval is a non-binding document, issued to the bank to let you know how much you can borrow based on your income, your credit standing and your age. 

In your in principle approval, you will be able to know how much you can borrow, how long you can borrow for and how much are the monthly instalments are estimated to be.

Typically you should make your in principle approval close to 3 weeks before your signing of your option to purchase. 

With an in principle approval, the banks have already received all the documents required and ran through credit checks to be able to give you a promise to lend you the monies needed to orchestrate the purchase. 

Do make sure you don't apply to too many banks as it may adversely affect your credit. 

If you're just shopping around the market and not sure about how much you can borrow, get a verbal in principle approval from us! 

By getting an in principle approval, you will be able to be certain on how much you'd be able to borrow, and be more confident to purchase your property. The last thing you want is when you've put down your option to purchase and not be able to afford the loan. 

With Unbeatable Mortgage, we help you calculate your maximum loan, your down payment, and your monthly instalments after your purchase.

For a formal in principle approval application you will need 

1. NRIC
2. 3 months pay slip
3. Notice of assessment (if more than 1 year in current job) 
4. CPF Contribution Statements 
5. HDB proof of non-ownership
6. Application forms and other requirements by the bank

The banks will run a credit check to be able to gather your monthly debt obligations before committing to lending you money.

A verbal In principle approval is an approval of how much you'd be able to borrow based on your income. 

For a verbal IPA with us, you will need, 

1. Basic pay amount
2. Notice of assessment (if more than 1 year in current job) 
3. Monthly commitments; car loans, credit cards, etc.. 

The banks access your borrowing ability by looking at your income, assets and debt. 

When getting a verbal in principle approval, you've worked out your numbers and have a good estimate on how much you can borrow. 

We have a 99% approval rates based on the verbal in principle approvals we give.

Unfortunately, no. 

Buildings under construction takes a varied time to complete, thats why banks usually only offer floating rates to Building Under Construction loans.

Upon TOP (Temporary Occupational Permit)
you will be given an option to reprice into either a fixed or floating rate. 
keep in mind, your breakage fee if you should refinance your loan.

A mortgage advisor is a professional that helps you get a home loan and refinance your mortgages. 

A good mortgage advisor

have a deep understanding of bank and government regulations, to help you avoid fees by understanding when you are looking to sell your property. Advises you on what rates and terms are favorable in the current market environment based on your current constraints.

Engaging a mortgage advisor saves you time and money.

In Singapore, the mortgage advisors are renumerated by referral fees to the bank as a third party. Banks either pay the bankers or mortgage brokers for a successful case. 

Difference is, a mortgage broker has access to all the banks in Singapore and does not take a salary from the bank; being able to recommend the rates that are most beneficial to you.

Bankers are renumerated by the profit the banks make, whereas the mortgage broker gets a flat fee, which means the priority is the lowest rate.

Yes you can use your CPF-OA to pay for your monthly instalments. 

Using your CPF-OA greatly reduces your stress when owning a property in Singapore.

If interest rates are higher than the CPF Rates it might be worth entertaining that thought.

But do know that this is a one way transaction for HDB cases. 

For private properties, you'd be able to gear up to do a voluntary housing refund, when bank interest rates are low. 

After 55 year old your CPF turns into a megabank. You'll be able to withdraw your CPF to pay for your mortgage without incurring accrued interest. but keep in mind the opportunity cost of the CPF Rates.

A small country like Singapore, we are very clearly price takers. And there has been a 90+% correlation between SORA and EFFR based on our 19 year data study from 2005-2024

It helps that the US Federal Reserve release economic projections that help guide us to helping you make the best decisions on which rates to take in for your mortgage.

Do keep in mind, that the economic projection is the current plan and plans do change. We make our recommendations based on many factors that may affect the movement of SORA rates