What is the procedure from applying for a mortgage loan for a condo property?

Pre-Qualification Check

Start by doing a pre-qualification check to estimate how much you can borrow. This involves approaching a bank to assess your income and existing financial commitments. This process can take up to seven days, but some banks offer instant pre-qualification checks online.

Comparing Mortgage Packages

Research and compare different mortgage packages offered by various banks. This step can take up to two weeks, as you need to evaluate the terms, interest rates, and other conditions of each loan package.

Getting an In-Principle Approval (IPA)

Submit your loan application to the bank, providing the necessary documents such as:

• NRIC or passport
• Statements of the past 12 months of CPF contributions
• Payslips for the past three months
• Latest Notice of Assessment (NOA) from IRAS
• Credit card statements
• Details of any existing loans or repayments

Mortgage Application

Once you have secured an IPA, you can proceed with the formal mortgage application. If all your documents are in order, bank loans typically take a few days to a week to obtain approval. You will need to submit the same set of documents mentioned earlier.

Letter of Offer

After your mortgage application is approved, the bank will issue a Letter of Offer (LO). This document outlines the terms and conditions of the loan, including the loan amount, loan tenure, interest rate, repayment dates, and any penalty clauses. You need to accept and sign the LO to secure the loan.

Property Valuation

The bank will require a property valuation report, which involves an indicative valuation during the loan application and a formal valuation once the loan is approved. Valuation fees vary depending on the property type and market value.

Completion of Purchase

After securing the LO, you can proceed with the purchase of the condo property. Ensure that all legal documents are signed, and the necessary payments, including the down payment and stamp duty, are made. The bank will disburse the loan amount, and you will take over the property key upon completion of the sale.

Final Steps

• Ensure vacant possession of the property from the seller.
• Conduct a final inspection of the property.
• Receive the keys to the property.
• Begin making monthly loan repayments, which can be done through GIRO or using your CPF Ordinary Account if eligible.