As taking personal loans from banks has become an increasingly common practice in Singapore, talks on improving credit score and scouting for banks with the best interest rates also seem to be on everyone's lips.
So the current total DSR of 55 per cent means your loan repayments, plus repayments of any other loans you have, can't exceed 55 per cent of your income. If you absolutely must take a personal loan before a housing or car loan , the timing gets tricky. Mortgage specialists from MoneySmart can help you find out what's the best home loan in Singapore for you.That means your HDB loan repayments can't exceed 30 per cent of your income, without taking into consideration other loan repayments. So your personal loans won't impact a HDB loan as much as a bank loan.When it comes to getting loans, be as specific as you can.
So as a borrower, you want to find the bank that's low on clients at the time. Think of it as a reverse "employee of the month". You want to be served by the reject, not the star, because they're so desperate they might give you better rates. Or better rewards.Almost nobody checks late payment penalties, because almost nobody intends to pay late. But it's part of knowing what you're getting into; like checking the interest rates, or checking for a better offer.