Buying a House
Buying a house is probably the biggest purchase one will ever make in life. Therefore understanding the procedures in securing a housing loan will save your time and avoid hesitation or nervousness. Browse the following article as it guides you through the fundamentals of financing a house, explains the technical terms and provides you priceless and very useful tips.

When you buy a house, you should ensure the following.

The developer has a legal license issued by the Ministry of Housing and Local Government.

The developer has a legal advertising and vending permit issued by respective local authority.

Reason: A developer with a superb track record eliminates the risk of project being forsaken.
Remember: You have the right to ask for the developer’s license and permit information, or you can also refer to the Ministry of Housing and Local Government for further clarification.

Be Realistic - Know what you can afford
Figure out what your budget is before you buy a house, this will help you to decide on how much you can afford and the maximum cost you may wish to pay for a property. In general, you should not pay for more than 1/3 of your monthly income on your monthly pledges for house, car and other installments.
Your financial support sources can be the following.

Savings

Withdrawal from your Employee Provident Fund (EPF) account

Loan facility from a financial institution

Your Savings
House buyer should have enough personal savings to pay for the down payment and other associated costs. The decent estimate would usually be about 10%-20% of the purchase price as down payment, alongside with another 3%-5% for related costs (i.e. legal fees and stamp duties).

Your EPF Savings
An alternative way to pay for the down payment is to withdraw your Account 2 from your EPF savings. Kindly contact your nearest EPF office to find out more about your EPF withdrawal eligibility.