Is the loan for a freehold old house affected?

When it comes to obtaining a loan for a property in Singapore, the type of tenure (leasehold or freehold) can indeed impact the loan process.

For leasehold properties, especially older ones, the remaining lease term is a critical factor. Banks typically require the property to have at least 30 years of lease remaining to approve a loan. If the lease is shorter, it may be more challenging to secure a loan, or the loan amount might be reduced.

On the other hand, freehold properties do not have these lease limitations. Since freehold properties are owned outright and do not have a lease that will expire, lenders do not have to worry about the remaining lease term. This generally makes it easier to obtain a loan for a freehold property compared to an older leasehold property.

However, other factors such as the property's condition, the borrower's creditworthiness, and market conditions will still be considered in the loan approval process for both leasehold and freehold properties.