Unlock Your Dream Home! Essential Singapore Property Documents for Home Loan

If you’re planning to buy a property in Singapore, getting a home loan is probably on top of your list. However, before you can even apply for a home loan, you need to make sure that you have all the necessary property documents in hand. These documents will serve as proof of ownership and will be required by the bank when you seek financing.

In this blog post, we’ll discuss the important Singapore property documents you need to secure to successfully apply for a home loan. Knowing what documents are required ahead of time will help streamline the loan application process, making the home-buying journey smoother and stress-free.

Identification Documents

When applying for a home loan in Singapore, identification documents are required for all applicants. Singaporeans and Permanent Residents need to submit a copy of their NRIC, while foreigners have to provide a copy of their passport. It is important that the documents submitted are up to date and valid. In addition to these identification documents, applicants also need to provide other documents depending on whether they are purchasing a new property or refinancing an existing one.

For new purchases, applicants who are employees need to submit the latest 3 months of computerised payslips, the latest Notice of Assessment, and the latest 12-month CPF Contribution History. On the other hand, self-employed applicants need to provide the latest 2 years of Notice of Assessment and/or the latest 3 months of computerised payslips and/or the latest 12-month CPF Contribution History. It is also important to submit the Option to Purchase if available, a HDB printout showing any outstanding loan taken from HDB, the latest credit statements (which might not be required), the latest Rental Income statements (if any), and the IRAS Property Account Summary showing the number of properties owned.

For refinancing, applicants need to submit the latest CPF Property Withdrawal Statement, a HDB printout showing any outstanding loan taken from HDB, and the latest outstanding housing loan statement from the existing bank (which might not be required). In addition, they need to provide the Title Deed for fully unencumbered property and the latest Rental Income statements (if any). It is also important to provide the Tenancy Agreement and Stamp Duty Certificate only if there is minimum 6 months remaining lease. By preparing and submitting the necessary documents, applicants can make their home loan application process smoother.

HDB Flat Information

When applying for a home loan in Singapore, one of the essential documents required is HDB Flat Information. Whether you are purchasing an HDB flat or refinancing an existing HDB loan, you need to provide both HDB Flat Information and HDB Financial Information. To access your HDB Flat Information, you need to log in to your MyHDBPage account using your SingPass. From there, you can select the “Purchased Flat” option and go to the “Flat Details” section, where you can click on “Save to PDF” and save it as a PDF file. This document shows details about your HDB flat and its ownership status, including the remaining lease, the flat type, and the floor area.

It is worth noting that if you do not own an HDB flat, you need to print a screenshot of the message stating that you do not own any HDB flat. This document is necessary to prove your eligibility for a home loan based on your housing status. Also, it is essential to provide accurate and up-to-date information to your bank or mortgage broker to ensure that your loan application process runs smoothly. By preparing all the required documents in advance, you can avoid unnecessary delays and have a better chance of securing a favorable loan package to purchase your dream home in Singapore. 

Financial Information

When applying for a home loan, financial information is an important aspect that lenders will need to consider. This includes a variety of documents such as your latest Notice of Assessment, 12 months CPF Contribution History, and latest 3 months’ payslips. For those working overseas, additional documents may also be required. It is important to have these documents prepared ahead of time to streamline the loan application process.

To obtain your Notice of Assessment, you can log on to the myTax Portal at the IRAS website, using your SingPass or IRAS pin. Under “Notices,” select “Individual” and choose the latest NOA to save as a PDF. The 12 months CPF Contribution History can be accessed through the my CPF Online Services at the CPF website, using your SingPass. From there, go to “My Statement,” select “Contribution History,” and choose the “Period” to download in PDF format. 

Lastly, for HDB flat information and financial information, you can log in to MyHDBPage at the HDB website using your SingPass. Under “Purchased Flat,” select “Flat Details” and “Save to PDF” at the bottom of the page. For financial information, go to “Financial Info,” right-click, and select “Print” to save as a PDF file. By having all the necessary financial information and documents ready, you can speed up the home loan application process and increase the chances of approval. 

Option to Purchase or Sales & Purchase Agreement

When applying for a home loan in Singapore, one of the documents required is either an Option to Purchase or a Sales & Purchase Agreement. These are legal documents that must be signed by both the buyer and seller, and they serve as proof of the agreed-upon terms of the sale. An Option to Purchase is typically used in the resale market to give the buyer the exclusive right to purchase the property within a specified period of time. To obtain an Option to Purchase, the buyer must have a valid HDB Loan Eligibility letter or In-Principle Approval from a participating financial institution. 

On the other hand, a Sales & Purchase Agreement is a contract for the sale and purchase of a property between a buyer and a seller. It includes details such as the purchase price, payment terms, and any conditions or contingencies. It is important to read and understand all the terms and conditions of these documents before signing, as they are legally binding and committing to them means that you are obligated to follow through with the sale. 

Valuation Report (for Private Property & Executive Condominium)

When applying for a home loan to purchase a private property or executive condominium, one of the important documents required is the valuation report. This report provides an estimate of the property’s market value based on factors such as location, size, and condition. It is usually prepared by a professional valuer hired by the bank to ensure that the property’s value is sufficient collateral for the loan.

The valuation report is especially important for private properties and executive condominiums because there may be significant variations in their market value compared to standard HDB flats. As such, the report can impact the loan amount that a bank is willing to offer, as well as the interest rate and repayment terms. It is also worth noting that the cost of the valuation report is typically borne by the borrower, and can range from a few hundred to several thousand dollars depending on the property’s value and complexity.

Overall, the valuation report is a crucial document to have when applying for a home loan to purchase a private property or executive condominium in Singapore. It helps both the borrower and the bank to assess the property’s worth and ensure that the loan amount is appropriate. As such, it is important to engage a professional and reputable valuer to prepare the report, and to factor in the cost of the report in the home-buying budget. 

Latest Notice of Assessment and 12 months CPF Contribution History

When applying for a home loan in Singapore, one of the required documents is the Latest Notice of Assessment and 12 months CPF Contribution History. These documents serve as proof of the borrower’s income and contributions to their Central Provident Fund (CPF) account. The Notice of Assessment is a document issued by the Inland Revenue Authority of Singapore (IRAS) that shows the amount of income earned and taxes paid for the previous year. It is important to provide the latest copy of this document to the lender to ensure that the borrower’s income is accurately reflected.

Meanwhile, the CPF Contribution History is a record of the monthly contributions made by the borrower and their employer to their CPF account. This document also provides information on the balance and utilization of CPF funds. It is typically required for both employees and self-employed individuals when applying for a home loan. Borrowers can access their CPF Contribution History online through the CPF website and download a copy to submit to the lender. Providing accurate and up-to-date financial records is crucial in securing a home loan in Singapore. 

Latest Payslips and Salary Crediting Account Statements

When applying for a home loan in Singapore, one of the documents needed are the latest payslips and salary crediting account statements. Banks typically require the latest three months of both documents from the borrower. The payslips should be computerized and show the employee’s basic salary, allowances, and deductions. They should also bear the company’s stamp or letterhead.

In a separate document, borrowers must provide the latest three months’ salary crediting account statements. These documents should show the salary being credited to the borrower’s bank account for the previous three months. They should also show details of any other income received during that period. 

Banks require these documents to verify the borrower’s ability to repay the loan. In addition, the bank may ask for additional documents if the borrower is working overseas. These requirements may vary between banks, so borrowers should always check the specific requirements from their chosen lender. 

8. Latest Credit Facilities Statements

When applying for a home loan in Singapore, it is important to provide the latest credit facilities statements. These statements will reveal any current loans such as home loans, credit card loans, car loans, or personal loans. By providing this information, the bank will be able to determine the borrower’s ability to repay the home loan along with other expenses.

To obtain the latest credit facilities statements, borrowers can contact their respective financial institutions where these facilities were issued. Alternatively, borrowers can log in to their online banking accounts to download a copy of the statements. It is important to ensure that the statements are up to date and cover at least the last three months.

By providing the latest credit facilities statements, borrowers can improve their chances of securing a home loan and speed up the approval process. It is essential to remember that all the required documents should be submitted accurately and on time to avoid any unnecessary delays or complications in obtaining a home loan. It is also important to get help from a trusted financial advisor who can guide borrowers through the entire process and help them make informed decisions about their home loan. 

Letter of Offer from Current Financial Institution (for Refinance)

When applying for a home loan, it is important to provide all the necessary documents to ensure a smooth process. If you are refinancing your property, you need to provide the bank with a Letter of Offer from your current financial institution. This document states the terms and conditions of your existing loan, including the outstanding balance, interest rate, and repayment schedule. It also confirms that you have made regular payments and are in good standing with your current lender.

To refinance your property, you need to apply for a new loan with a different bank or financial institution that offers better interest rates or more favorable terms. The new lender will evaluate your creditworthiness and financial situation, and if approved, will provide you with a new Letter of Offer that outlines the terms of the new loan. You can use this document to compare different loan options and choose the one that best meets your needs.

In summary, a Letter of Offer from your current financial institution is a key document required for refinancing your property. It provides important information about your existing loan and helps you make an informed decision about your future financial plans. By working with a reputable lender and providing all the necessary documents, you can secure a favorable home loan that suits your needs and budget.

Rental Income Statements and IRAS Property Account Summary.

When renting out a property in Singapore, landlords must declare the rental income they receive in their Income Tax Return. All rent payments are subject to income tax, including the rent of furniture and fittings, rental deposit, subletting of property, and recovery from insurance. Landlords must also provide rental waivers to eligible tenants under the Rental Relief Framework. 

Rental income is taxable from the date it is due and payable to the property owner, not from the actual receipt date. It is important to note that property tax, a tax on property ownership, is different from income tax, which is a tax on your earnings, including rental income. The net rental income after deduction of any allowable expenses is subject to income tax.

To comply with home loan application requirements in Singapore, certain documents must be prepared, especially for the purchase or refinance of a HDB flat or private property. For purchase, applicants must provide their NRIC or Passport, Option to Purchase or Sales & Purchase Agreement, HDB Flat & Financial Information, valuation report, Latest Notice of Assessment and 12 months CPF Contribution History, and latest payslips. 

For a refinance, applicants must provide their Letter of Offer from their Financial Institution, HDB Flat Information & Financial Information, IRAS My Property Portfolio, Latest CPF Property Withdrawal Statement, and other relevant credit facilities statements. These documents can be easily downloaded online via IRAS or CPF websites. Providing complete and accurate documents and information can help expedite the home loan application process.