post

Personal loan search done diligently should get you best fit product

Click on Personal loan search done diligently should get you best fit product
for the source.
Author: Ravi Philemon

Personal loan search should be done in a diligent way, and be mindful that applications made in an incomplete manner, will find it very difficult to secure loan.

By: Hitesh Khan/

personal loan searchThousands of people are searching online for unsecured personal loans at any given time. Some of those doing personal loan search will find loans that charge very high interest rates or fees. Some will get great deals on personal loans with minimal hassle. It’s better to be part of this second group.

For personal loan search, here are three ways to stay on the affordable side of personal loans:

1. Good Credit Score

Borrowers with a good credit score are at a great advantage in obtaining affordable personal loans. Borrowers with over good credit who need a personal loan for a good reason are a no-brainer for a wide range of lenders, from traditional banks to finance co-operatives and other non-bank lenders like licensed moneylenders. Unsecured personal loans repayments are often done through a personal bank account; if ten other lenders have claims to that bank account, an affordable unsecured personal loan is not happening.

2. Steady Job

The other main way to get an affordable personal loan is to hold down a steady job. Also, to be able to verify that this job has been steady over some time. If a borrower can look at bank statements and see that salary going in every month, approving a personal loan makes a lot of sense.

3. Easy File

Those doing personal loan search should not just throw out numbers on the application and hope for the best. Instead, be prepared and use accurate information.

Lenders are able to process “easy file” loan applications much faster and more satisfactorily than applications with missing information, incorrect bank account information, or unavailable contact numbers. Applying for an unsecured personal loan can be done the easy way, or it can be done the incomplete way, which then turns into the hard way.

When doing personal loan search be mindful that an affordable unsecured loan is often made available to highly qualified borrowers. Bad credit personal loans are available, too. But the best rates on personal loans are reserved for borrowers with good credit, verifiable income, and organised application information. Low APR, with fixed repayment schedules, with no collateral posted, are readily available to qualified borrowers, even in this still-restricted credit environment.

Sometimes personal loan applications get rejected because of poor credit score due to misreported bank finance charge. Given that your poor credit score might be caused due to something accidental and unexpected, like misreported bank finance charge, your first logical step should be to review your credit report and fix whatever is possible as this can really help in broadening your options for personal loans in the future. There are agencies which can help in repairing your credit score quite successfully and you should consider these as your first option when thinking of a personal loan with having bad credit.

Even with poor credit score, if you have held the same job for a number of years, for instance, you’re more likely to obtain the loan. However, if you’ve changed jobs several times over the past few years, you may be less likely to get the loan you want.

The application process for a personal loan from a licensed moneylender is usually relatively quick. Another advantage is that it does not require a formal closing. The application process consists of a written application, a promissory note, and a payment schedule. As a result, there is less paperwork and hassle involved in obtaining a personal loan than in obtaining a secured loan.

Personal loans can be a godsend when you face a huge medical bill, an unexpected repair bill, or another large expense. But you might be wondering if a personal loan is even possible if you have had the misfortune of having bad credit.

When personal loan shopping, take time to evaluate different lenders and loan packages. This will help you make the best decision about borrowing money. If several lenders refuse to loan you money or offer very high interest rates, you may need to put off borrowing money until you clean up your credit.

When you carefully analyse and do personal loan search, you will realise that to choose personal loan may be the most sensible option when you want to borrow a fixed amount over a short period of time.

Personal loans are a way to use tomorrow’s income today, and unlike other loan products like mortgage loans or education loans, the process involved to apply for best personal loan is relatively simple.

But you must note that the interest rates are much higher than, say, for a car loan. This is because personal loans are unsecured loans, which means that the personal loan is not backed by any asset. The loan amount and interest rate depend on different parameters such as your income, credit history, repayment capacity, and others.

As even the best personal loan comes with high interest rates, so defaulting loan payments will put you on a quick downward spiral. Personal loans are basically unsecured loans which typically from $1,000 – $100,000 with fixed or variable interest rates that can be used to make a large purchase or to consolidate debt. Borrowers can use personal loans for credit card debt consolidation, business expansions, home improvements, medical bills and other major life expenses.

The post Personal loan search done diligently should get you best fit product appeared first on iCompareLoan Resources.

post

Property valuation factors that add worth to your home only a handful

Click on Property valuation factors that add worth to your home only a handful
for the source.
Author: Ravi Philemon

What property valuation factors add worth to your home especially in this Covid-19 crisis? This question has become an increasingly common topic of conversation in recent months. But what property valuation factors decides how much your home is worth?

By: Hitesh Khan/

property valuation factors

Image credit: Grant McLean/Flickr

There are a number of property valuation factors which determine your homes worth, some are logical, based on economic theories and population density and some are based on more intangible factors, like the feel of a neighbourhood and expectations for future growth.

We have outlined some of the key property valuation factors which effect your homes worth and how they are determined.

1. Supply and demand
Put simply if demand for houses increases faster than supply, then house prices go up. For house prices to fall the demand needs to fall.

2. Interest rates
When interest rates rise, mortgage lenders generally increase the cost of variable mortgage payments. These higher interest rates in turn make home buying less attractive. Since the majority of homeowners in Singapore have variable mortgages, even a small change in interest rates can have a big impact on the affordability of buying a house.

3. Economic growth
As the economy grows and wages increase more people can afford buy a house, this in turn increases overall demand, which increases prices. See number 1.

4. Demographics
As levels of migration increase so does the population and more people means more demand for homes. Another factor is changes in demographics; for example rising divorce rates have increased the number of single people living alone and our old friend demand is an issue again.

5. Location, location, location
This is an obvious one. Homes that are closer to the MRT, closer to the CBD or closer to good schools tend to add to the property valuation factors. If you look at any map of Singapore, you will see a high concentration of housing around the city centre. The majority of people want to live close to where they work, shop and go out to enjoy themselves and this naturally causes higher demand for property prices in these areas.

6. Parking
We all know that parking is at a premium in our big cities so if a home has designated parking space, this can significantly increase the value of a home.

9. Home improvements
Updating kitchens, replacing flooring, repainting walls and adding landscaping can add to the Singapore property values. However often homeowners spend too much and don’t get the return on investment when they sell the house. Before making drastic improvements to your house, be sure to talk with your real estate agent so that you use your money wisely on your investment.

Have you ever noticed everyone gravitates toward the kitchen during a party? It’s known as the heart of the home for a good reason. The draw of your kitchen to party-goers has the same value to potential buyers, so a kitchen remodel is one of the best ways to add value to your house. An updated kitchen appeals to a buyer’s emotions and a homeowner’s wallet because, if done correctly, it can give you close to a 100 per cent return on your investment on home improvements.

Updating your bathrooms, especially master baths, will add considerable value to your house. A master suite with his and her sinks, spacious showers and plenty of square footage are what buyers are looking for. Added amenities such steam showers and whirlpool tubs will serve you well, and ample storage is a must.

Traditional ceramic tile floors are preferred over wood flooring because they handle water better. If you want to go green, low-flow toilets and skylights are good choices. Keep your design in the same period as the rest of your house. You can still have modern amenities while retaining a classic look. Don’t be shy when it comes to spending – the average bathroom remodel can get you back the majority of your investment.

Do you know enough about how property valuation is done in Singapore?

Knowing how to calculate the property valuation is of paramount importance to a home owner. It can help you determine whether you are overpaying for a home, or whether you have gotten yourself a real bargain. Paying the right price is just one way you can avoid overspending on your property.

Another smart way to avoid overspending on your property is to get the right loan. Getting the right loan can be a much simpler task, but only if you get the right person to it for you. Get in touch with iCompareLoan’s loan consultant to help you get the best loan deal at the right price.

The iCompareLoan mortgage brokers can set you up on a path that can get you a home loan in a quick and seamless manner. We are the experts who do the work for you for free, while you lean back, rest and rely on our professionalism at absolutely no cost to you.

Our brokers have close links with the best lenders in town and can help you compare Singapore home loans and settle for a package that best suits your home purchase needs. Find out money saving tips here.

Whether you are looking for a new home loan or to refinance, the Mortgage broker can help you get everything right from calculating mortgage repayment, comparing interest rates all through to securing the best home loans in Singapore. And the good thing is that all our services are free of charge. So it’s all worth it to secure a loan through us.

For advice on a new home loan.

For refinancing advice.

The post Property valuation factors that add worth to your home only a handful appeared first on iCompareLoan Resources.

post

Fortitude Budget targeted to help SMEs cope with Covid-19

Click on Fortitude Budget targeted to help SMEs cope with Covid-19
for the source.
Author: Ravi Philemon

Fortitude Budget targeted to provide further clarity in helping SMEs to survive COVID-19 and its effects

The Singapore government has announced a fourth round of support measures in Parliament on May 26, 2020 to help businesses, workers and households mitigate the coronavirus (COVID-19) impact.

The new “Fortitude Budget” follows the Unity Budget announced on February 18, the Resilience Budget of March 26 and the Solidarity Budget of 6 April, and comes as Singapore is about to ease out of the two-month circuit breaker which lasted from 7 April to 1 June. Schools will reopen but most workplaces will still remain largely shut after 1 June, at least for four weeks during Phase 1.

Known as the Fortitude Budget, this fourth stimulus package will cost a further S$33 billion. The extra stimulus will take the government’s COVID-19 related relief measures to S$93 billion, representing 19.2% of gross domestic product (GDP).

Fortitude Budget targeted

Fortitude Budget targeted to help SMEs cope with Covid-19

Fortitude Budget targeted at saving jobs

Colliers International noted that the central focus for the Fortitude Budget is jobs, with more measures to support workers and businesses who remain affected by border closures and safe distancing measures. Besides enhancing the Job Support Scheme (JSS), more than 40,000 jobs are to be created in public and private sectors, and about 25,000 traineeships will be created this year to help job seekers gain industry-relevant experience. To support digital transformation, the government will pay a Digital Resilience Bonus of up to S$5,000 for F&B, retail businesses that go digital e.g. adopt PayNow Corporate and e-invoicing, as well as business processes or e-commerce solutions.

Fortitude Budget targeted at helping property sector

  • New cash grants to offset rental costs for SMEs

The Singapore government will provide a new cash grant to offset more of the rental costs of small and medium-sized enterprises (SMEs), to be disbursed through property owners. For qualifying tenants of commercial properties, such as shops, the grant will amount to about 0.8 month’s worth of rent. Those in industrial and office properties will get a grant amounting to 0.64 month’s of rent.

Taken together with the earlier property tax rebates earlier (100% for retail properties equivalent to 1.2 months’ rent, and 30% for office and industrial properties equivalent to 0.36 month’s month), the government will, in effect, offset about two months’ of rents for qualifying SME tenants of commercial properties, and about one month for qualifying SME tenants of industrial and office properties.

  • New law to mandate landlords grant temporary rental waiver to SME tenants

The Singapore government will introduce a new bill to mandate landlords grant a rental waiver to small- and medium-sized enterprise (SME) tenants that have suffered a significant revenue drop in the past few months.

The new bill will also cover provisions on temporary relief from onerous contractual terms such as excessive late payment interest or charges. It will also allow tenants to repay their arrears through installments. If the bill is passed by Parliament, SME tenants in commercial properties who have suffered a significant revenue drop will benefit from a total of four months’ of rental relief – shared equally between the government and landlords.

Meanwhile, other SME tenants in industrial and office properties will also be given some relief. They also already benefit from temporary relief from rental payment obligations until October.

Ms Tricia Song, Head of Research for Singapore at Colliers International, said the Fortitude Budget targeted at helping SMEs

“We expect these two new measures, taken together, should provide further clarity in helping SMEs to survive COVID-19 and its effects.

The earlier Temporary Measures bill provided a moratorium in rental payments for affected businesses, but uncertainty of the tenants’ ability to pay after six months still exists, which create a lot of risk to the landlords and entire eco-system. A full four months’ rental relief for SME retail tenants, with landlords sharing half of it, should ensure a better collective outcome for both tenants and landlords.”

Selected measures from Fortitude Budget targeted at property sector

Measures 4th support Budget on 26 May 3rd support Budget on 6 April Supplementary Budget on 26 March Budget on 18 Feb

 

Beneficiaries
Property tax rebates for qualifying commercial properties including shops and restaurants     100% (equivalent to 10% of annual rent or 1.2 month rent) 15% Retail landlords to pass through to tenants
Property tax rebate for hotels, serviced apartments, tourist attractions, MICE venues     100% 30% Hospitality
Property tax rebate for Integrated Resorts     60% 10% Integrated Resorts operators
Property tax rebate for non-residential properties     30% (equivalent to 3% of annual rent or 0.36 month rent) None Industrial, warehouse, office landlords to pass through to tenants
*NEW*Cash grant for qualifying SMEs for property rental 0.8 month rent for SME commercial tenants and 0.64 month for SME industrial and office tenants       SME tenants in private retail, office and industrial properties
Rental waivers for non-residential tenants of state properties

Such as hawker centres, JTC, SLA, HDB, URA, BCA, NParks, and PA

+2 months for hawkers and commercial tenants; +1 month for industrial, office and agricultural; bringing total 5 months for hawkers, 4 months for commercial; 2 months for industrial, office and agricultural tenants +0.5 month for industrial, office and agricultural tenants; rest remained same 0.5 to 3 months 0 to 1 month Non-residential tenants of government agencies
Deferment of income tax payments for companies and self-employed persons     3 months None Industry-wide
Jobs Support Scheme 1 additional month of support til November 2020, will be at the same levels as those provided during the non-“circuit breaker” months. 75% of monthly wages for every local worker in employment, capped at S$4,600, for the “circuit breaker” month of April and May 25% of monthly wages for every local worker in employment, capped at S$4,600, for 9 months til October 2020 None Industry-wide
Enhanced Jobs Support Scheme for Aviation, Tourism, Food Services, Land Transport, Arts & Culture sector; Aerospace, marine, offshore, retail sectors 75% wage offset for those businesses which cannot resume operations post circuit breaker until August, eg. retail outlets, gym and fitness studios, and cinemas.   50- 75% wage offset, capped at monthly wage of S$4,600, for 9 months til end-2020 None Industry-wide
Foreign worker levy waiver/ rebate Foreign Worker Levy waiver and rebate extended by up to 2 months for businesses that are not allowed to resume operations on-site after circuit breaker, and will include all firms in the construction, marine and offshore, and process sectors. The monthly foreign worker levy due in April will be waived.

 

 

 

As early as Apr 21, employers will also receive a foreign worker levy rebate of S$750 for each work permit or S pass holder.

None None Industry-wide
Cash payout and grocery vouchers to households, utility bill credit Households with at least one Singapore citizen will get a one-off S$100 credit in their utilities bill. Additional S$300 cash payout for every Singaporean adult, and one-off payment of S$600 by 30 April S$300 – 900 S$100 – 300 Industry-wide

Source: Colliers International, Ministry of Finance

The post Fortitude Budget targeted to help SMEs cope with Covid-19 appeared first on iCompareLoan Resources.

post

Defaulting loan payments can get you into serious trouble

Click on Defaulting loan payments can get you into serious trouble
for the source.
Author: Ravi Philemon

Although some loans, like personal loans, are easier to get defaulting loan payments can get you into serious trouble

by: Hitesh Khan/

Personal loans are a way to use tomorrow’s income today, and unlike other loan products like mortgage loans or education loans, the process involved to apply for best personal loan is relatively simple.

But you must note that the interest rates are much higher than, say, for a car loan. This is because personal loans are unsecured loans, which means that the personal loan is not backed by any asset. The loan amount and interest rate depend on different parameters such as your income, credit history, repayment capacity, and others.

As even the best personal loan comes with high interest rates, so defaulting loan payments will put you on a downward spiral.

Here are some of the lowest personal loan interest rates offered by various banks:

Personal loans are basically unsecured loans which typically from $1,000 – $100,000 with fixed or variable interest rates that can be used to make a large purchase or to consolidate debt. Borrowers can use personal loans for credit card debt consolidation, business expansions, home improvements, medical bills and other major life expenses. Once recent study showed that personal loans are now the fastest growing consumer debt.

defaulting loan payments

image credit: InvestmentZen

The best personal loan typically has a set term of three to five years and generally charge a fixed interest rate.

One report showed that millennials are driving the growth of the personal loan market. The report added that this category of people are rapidly coming into their earnings and credit wheelhouse – and because it takes time to become creditworthy, a higher proportion of millennials end up taking personal loans.

Even the best personal loan can get you into trouble if you are defaulting loan payments. A loan default or loan delinquency is your failure to make loan repayments when they are due. Extended delinquency can result in a loan default. It is the failure to repay the loan as per the terms agreed between you and credit institution.

When defaulting loan payments, the interests owed on your personal loans snowballs, drastically reducing your credit score and impacting your ability to receive future credit for lives other needs like the best home loans. Besides your personal properties being seized for default, the lending agency will also send a debt collection agency after you. The debt collection agency will try to contact you to repay, and this may include them trying to reach you at your place of work, or at home in full view of all your neighbours.

So, the rule of the thumb is, if you think you are going to be defaulting loan payments, contact your lender to discuss restructuring your best personal loan.

It is better to contact you lender to restructure rather than face the dire consequences of defaulting loan payments, which includes:

  • Employment difficulties,
  • Having money from seized from your accounts,
  • Legal proceedings, and
  • No access to crucial loans.

If the debt collection agency is not able to collect the delinquent loan, sooner or later it will reach a lawyer’s desk, and a collection attorney may take you to court after issuing a final letter calling upon you to pay your debt. If the debt is deemed valid, the court can issue a judgment against you, ordering you to pay it — and legal fees. Once you go to court, your default becomes a matter of public record.

A court judgment may allow a creditor to put a lien on your property, which means that if you ever sell it you’ll be forced to cover over some or all of that debt. A lender or collector can also ask a judge for an execution order.

Fortunately, you lender can’t go to the police to recover the personal loan extended to you. Personal loan cases are treated as civil cases instead of criminal cases, so the police will take a hands-off approach. But be mindful that if the amount owed to all of your creditors (including credit cards and car loans) is at least $10,000, you can be made bankrupt in Singapore.

The problem however isn’t just being declared bankrupt. The Official Assignee can seize your belongings which in Singapore can include, property, tools of your trade, property held in trust for someone else, and even clothing and furniture.

In fact, if you even try to take vacation, you will need the OA’s permission or you can be fined up to $10,000 and/or jailed for up to 2 years.

Most personal loans are granted as unsecured loans. Borrowers don’t necessarily need to have the best credit or even any type of collateral as that is not the primary concern for the providers of these types of loans. Unsecured loans are provided more on good faith and what lenders need to provide are their name, NRIC and income verification.

No collateral is needed so if the loan goes into default, the lender will not get anything in return. Higher interest rates charged are the price to pay for not having collateral or a co-signer on these types of loans.

Because the lender is not operating with any type of collateral from the borrower, they are taking a greater risk. With that great risk comes higher interest rates as that is what a borrower can offer to a lender in that higher risk situation; a bigger rate of return.

The post Defaulting loan payments can get you into serious trouble appeared first on iCompareLoan Resources.

post

Property value – will it be affected by the current Covid-19 crisis

Click on Property value – will it be affected by the current Covid-19 crisis
for the source.
Author: Ravi Philemon

Colliers International a leading real estate services agency says the impact on property value will differ among property types

Colliers International in an attempt to answer burning real estate questions in a time of the Covid-19 pandemic said: “property value will differ among property types”.

Ms Stella Seow, Executive Director & Head at Colliers International, answers 3 burning questions on property value:

Has the value of my property been affected by the current situation?
The current pandemic has affected markets across the globe, with very few sectors surviving the turbulence unscathed.

With regards to property values, the impact understandably differs among property types. The best avenue is to engage a professional Property Valuer to ascertain your properties current value. This will also be useful for refinancing purposes particularly while interest rates are expected to remain low.

I want to save on my property tax. How can I do this?
Saving on property tax has always been front of mind for many people. However, the desire for it during this climate has understandably been amplified. Here are some ways you can save on your property tax:

Residential and Industrial
If the rental of the premises has been reduced as a result of the market situation, we suggest you inform IRAS in a timely manner to ensure the Annual Value can be revised downwards and property tax reduced accordingly.

Retail
Provide regular updates on the tenancy, particularly when there is a downward revision of rent. During this period, landlords are given 100% property tax rebate and will have to pass this rebate to the tenants.

Office
Saving on office property tax is similar to retail, however landlords are given only 30% property tax rebate and will have to pass this rebate to the tenants.

I want to have my property valued now, but there are still restrictions in play. Can you still value my property?
Yes, absolutely! As we all continue to embrace new ways of communicating, Colliers has introduced virtual property valuation measures.

We are conducting real-time inspections via WhatsApp or Facetime video calls with our Colliers experts. In addition to the virtual inspection, we will also require photographs of your premises as well as floor plans and floor areas for landed properties.

As always, the banks and financial institutions will still require a valuation to confirm the property’s market value before loan can be disbursed.”

Do you know enough about how property valuation is done in Singapore?

Knowing how to calculate the property value is of paramount importance to a home owner. It can help you determine whether you are overpaying for a home, or whether you have gotten yourself a real bargain. Paying the right price is just one way you can avoid overspending on your property.

Even when you are paying a premium for the home, you need to make sure that you are paying a premium for something in return (e.g. fully furnished home or soothing interior design). You can check with a valuer or you can check with a property agent that has access to a iValue tool at Home Loan Report.

Even when you are paying a premium for the home, you need to make sure that you are paying a premium for something in return (e.g. fully furnished home or soothing interior design). You can check with a valuer or you can check with a property agent that has access to a iValue tool at Home Loan Report.

property value

Picture 1: Property valuation is estimated for the Rivergate Condominium, home loan report by iCompareLoan.com

You can then use that as a first estimate of whether the property is worth buying, alternatively if your agent is telling you the price is 4 million, you can also see that the unit in question is estimated at around $ 3.86m, that gives you some level of guide as to whether the deal is possible or not. However if the agent is telling that the unit is $4.4m while the estimated value is only $3.86m, then it is very likely that the property agent is trying to “manage” you.

Ultimately, it is to help you make a better decision when it comes to choosing a home and also not to get ripped off by lousy sellers. Before you buy a property, you may also want to assess your property loan affordability and downpayment, so that you can be properly assured.

SAMPLE –> Property Buyer Report – Rivergate – iValue to get a feel of how a comprehensive property buyer report can SAVE you thousands or even hundreds of thousands from over-paying.

Ultimately you will not need to do the property valuation in Singapore yourself because there will be valuers who are experienced in doing that job. However the methodology is important to know, because it helps you to understand why a property price will go up or down and the reasons for it.

There are three methods that you can use for property valuation: Income; Direct Comparison (Comparative market analysis); and Residual method. To help our readers understand each of these property valuation methods, the iCompareLoan team has prepared this property valuation guide to dissect everything you need to know about property valuation.

The direct comparison method is probably the property valuation method that people are most familiar with. Among the three types of property valuation methods, direct comparison method is also the easiest to understand. This is one of the main reasons why direct comparison is a popular property valuation method.

You can read about the other property value comparison methods here: https://www.icompareloan.com/resources/property-valuation-singapore/

The post Property value – will it be affected by the current Covid-19 crisis appeared first on iCompareLoan Resources.

post

Fortitude Budget targeted to support Singaporeans and Families

Click on Fortitude Budget targeted to support Singaporeans and Families
for the source.
Author: Ravi Philemon

Government’s stimulus package, Fortitude Budget, targeted to support Singaporeans and Families

Deputy Prime Minister Heng Swee Keat announced an additional S$33 billion COVID-19 support package in Parliament today (26 May).

fortitude budgetDubbed the fortitude budget, this latest support package is the fourth support package Singapore has unveiled since the COVID pandemic broke out.

Commenting on the Fortitude Budget, Mr  Desmond Sim, CBRE‘s Head of Research for Southeast Asia, said: “Overall, this stimulus package was more targeted to support Singaporeans and businesses, fortifying the original stimulus package (announced on 18 Feb 2020). It aims to provide a shot in the arm to cushion the impact and limit repercussions through the economy; relieving businesses of cashflow, credit and operational costs issues, as well as putting more cash in the hands of consumers.”

“With enhanced support for daily expenses, we expect domestic consumption to be shored up especially for non-discretionary items such as groceries and pharmaceutical products.

Landlords are expected to benefit from increased property tax rebates and highly encouraged to pass these on to tenants. All non-residential properties will enjoy a 30% property tax rebate, which is equivalent to 3% of rental relief per annum for non-residential properties. As for qualifying commercial properties such as hotels, serviced apartments, tourist attractions, shops and restaurants, the property tax rebate has been increased up to 100%. This translates up to 10% rental reprieve per annum for these qualifying commercial properties.

This additional support will further incentivise landlords to work with their tenants on easing their rental costs. In addition, both landlords and tenants can also focus on their cashflow with the deferment of income tax as well as the one-year freeze on government fees and charges. Going forward, we expect landlords to work more closely with tenants.

As the world continues to grapple with this pandemic, the Singapore government has tapped into our reserves to provide a package that aims to buffer the impact for all Singaporeans and businesses. Although it has been reported that this pandemic is likely to last for more than a year, it was mentioned that Singapore could dig deeper into our reserves for another stimulus, should the need arise. In addition to this financial stimulus, it remains of utmost importance to be socially responsible.”

On 26 March 2020, Singapore’s Deputy Prime Minister and Finance Minister Mr Heng Swee Keat unveiled the Resilience Budget, a second stimulus package in response to the COVID-19 pandemic. Together with the Unity Budget announced on 18 February 2020, the government will be dedicating close to $55 bn, amounting to 11% of Singapore’s GDP.

Drawing up to $17 bn from its reserves, this will be the second time in history that Singapore has drawn down on its reserves after 2009. The Resilience Budget will be worth $48.4 bn, surpassing the record $20.5 bn stimulus package which had helped Singapore tide over the 2009 Global Financial Crisis and is more than seven times the $6.4 bn in the first tranche of COVID-19 support measures.

This additional package was widely anticipated and seen as a necessary cushion with Singapore not spared from the pandemic; its economy contracted 2.2% y-o-y in the first quarter of 2020, according to advance estimates released by the Ministry of Trade and Industry (MTI) on 26 March 2020. MTI also further downgraded Singapore’s GDP growth forecast for 2020 to -4.0% to -1.0% from -0.5% to +1.5% previously, signifying that the economy is expected to register its first full year recession in two decades.

This Fortitude Budget consists of three main thrusts: 1) Save jobs, supporting workers and protecting livelihoods, 2) Helping businesses overcome immediate challenges, and 3) Strengthening economic and social resilience.

The central focus of this Budget is jobs. This Budget will continue to support workers and businesses who remain affected by border closures and safe distancing measures. Given the significant changes in the global economy ahead, the government will provide support to enable our businesses and workers to adapt, transform and seize new opportunities, to emerge stronger. We aim to enable workers and businesses to go through this difficult period together in a synergistic way.

1) Save Jobs, Support Workers, and Protect Livelihoods 
The schemes introduced aim to keep workers employed during this period of uncertainty. b

c) Helping families with daily expenses

Enhanced care and support  Help for families with young children
Triple one-off cash payout to $300-$900 for all adult Singaporeans aged 21 and above  Additional cash payout to each parent tripled from $100 to $300
 Enhanced workfare special payment   Enhanced grocery voucher
 Cash payout of $3,000 this year  Total of $400 in 2020 and 2021 for needy Singaporeans

d) Greater flexibility on fees and loans

– One-year freeze on government fees and charges
– Student loan relief: one-year suspension of loan repayment and interest charges
– HDB mortgage arrears relief: 3-month suspension of late payment charges

This is including a slew of other policies that provide support for self-employed persons, additional training, support for the unemployed and lower- and middle-income Singaporeans.

2) Help Businesses Overcome Immediate Challenges
The government announced numerous initiatives to ease cash flow for businesses. These include:

 

Enhanced property tax rebate for 2020   Enhanced rental waivers for government – managed properties 
 – 100% rebate for qualifying commercial properties such as hotels, serviced apartments, tourist attractions, shops and restaurants
– 30% rebate for other non-residential properties
– Landlords are urged to pass these savings to tenants
 – Increased rental waiver from 1 month to 2 months, for stallholders in hawker centres managed by NEA or NEA-appointed operators
– Increased rental waiver from 0.5 months to 2 months for eligible tenants of government agencies
– All other non-residential tenants of government agencies receive 0.5 months of rental waiver

*Property tax rebate from 1 Jan 2020 – 30 Dec 2020

To tide over this outbreak, there will be a one-year freeze on government fees and charges from 1 Apr 2020 to 31 Mar 2021. Various measures were also introduced to support affected sectors such as the aviation, tourism, food services, land transport, as well as the arts and culture industry. $90 m will also be set aside to help the tourism industry rebound when the time is right.

3) Strengthen Economic and Social Resilience
Mr Heng reassured Singaporeans during his Fortitude Budget address that Singapore has built up a healthy stockpile of health supplies as well as food. There has also been additional support to achieve the ‘30 by 30’ vision to produce 30% of our food locally by 2030 for food security.

The government acknowledges that it is costly for employers and households to implement safe distancing measures and that through stimulus measures like the Fortitude Budget, the government will offer help to cushion the impact.

The post Fortitude Budget targeted to support Singaporeans and Families appeared first on iCompareLoan Resources.

post

Costless payments – how to adapt to a world of ‘free money’?

Click on Costless payments – how to adapt to a world of ‘free money’?
for the source.
Author: Ravi Philemon

As payments are bundled together with other services and consumers expect them to be costless payments (or free money), banks and retailers need to rethink their strategy

  • The nature of payments is changing quickly with technology advances and the rise of e-wallets.
  • The payments function increasingly is embedded as just one feature among many—for example, in a mobile app—where the core value and profit derive from other services.
  • This phenomenon has accelerated the most in Asia, where consumers have leapfrogged over card payments to adopt e-wallets, notably in super-apps such as WeChat.
  • Banks, card companies, retailers, telecommunications firms and technology firms all should assess what role payments will play in their proposition to merchants or consumers.

Payments are having their moment in the limelight as technological advances and the rise of e-wallets and open banking continue to redefine customer expectations. While this phenomenon is most prominent in Asia, the rest of the world is primed to follow suit. Banks, retailers and others who are used to making money from payments need to rethink their strategy now.

“The monetary authorities of Singapore, the Philippines and Thailand envision that situation even for cross-border payments. In India, the early successes of the “India Stack” unified software platform and the Unified Payment Interface (UPI) real-time payment system are being studied by other governments as a potential model to make national payment systems more accessible and efficient. The Indian government is also considering abolishing the “merchant discount rate” charges on merchants who allow their customers to make payments through “low-cost digital payment modes.””

costless paymentsHow can providers adapt quickly to the idea of costless payments?

This is the key takeaway from Bain & Company’s report, Payments Just Want to be “Free” –How can Providers Adapt?, published ahead of Sibos 2019 in London.

“Payments are at the forefront like never before,” said Thomas Olsen, a partner with Bain & Company’s Financial Services practice and a co-author of the report. “What’s happening now in Asia foreshadows the types of developments that could soon occur everywhere else. The experience is simple and seamless, and increasingly innovative providers keep raising the bar when it comes to what consumers and merchants expect.”

Traditional players who do not adopt the concept of costless payments will suffer

The profit pool for traditional players that do not adapt will suffer.  Thus, companies across industries – banks, retailers, and tech platforms, for example – need to rethink their strategy now.

Some strategic options for existing payments providers include:

  • Consolidating through mergers and acquisitions, in order to become more efficient in processing and innovation, enter new geographies or business segments, and to expand their opportunities for cross selling
  • Adding services beyond traditional terminals and transaction processing, such as lending to merchants and consumers, and business management software that includes payroll, inventory and customer relationship management
  • Facilitating e-commerce transactions and integrating payments with the store register.

Future view of costless payments

“The future view of payments is increasingly clear: free, easy and embedded into other products and services,” said Glen Williams, head of Bain & Company’s global

Payments practice. “A critical mass of consumers will soon demand ‘invisible payments’ at most places they shop, so retailers should start thinking now about what this means for them.”

“Some mobile apps, such as GrabPay, already offer payments solutions to both consumers and retailers for nothing, using payments as a tool for rapid customer acquisition and leveraging the data to monetize other services. Even in mature card markets where payments remains profitable for banks, merchant acquirers and gateway or payment service providers, including the US, parts of Europe, Brazil and Australia, profits from standalone payments are under pressure and pricing will inevitably decline.”

Banking sector will be affected by this costless payments concept as well

The banking sector will also be to be affected by the changes in payments, and banks will have to decide which of their current profit pools they cede in order to stay relevant.

“The innovation in payments is moving at a breakneck pace – and anyone who is currently making money from payments needs to think about how to broaden their offering into additional business lines to ensure that they maintain profit levels in the future,” said Mr. Williams. “The winners will be those who define clear choices and take action to redefine themselves and solidify their place in this new and exciting payments ecosystem.”

“Banks will need to decide which of their current profit pools they cede in order to stay relevant in the future payment world. They will also have to evaluate technology choices for modernizing payment capabilities.”

How to Secure Small Business Loan Quickly

Before applying for a business loan, talk to the loan consultants at trusted loan consultancies. They can set you up on a path that can get you a it in a quick and seamless manner. Trusted loan consultants have close links with the best lenders in town and can help you compare various loans and settle for a package that best suits your needs. You should also find out about money saving tips.

Good Affordability Tools can help you make better property buying decisions. Good Calculators can help you ascertain the fair value of a property and find properties below market value in Singapore.

SME owners should also find out more about Peer to peer lending versus that of SME loans so as to make an informed decision: SME Loans or Peer-to-peer (P2P) Lending – What is the difference?

The post Costless payments – how to adapt to a world of ‘free money’? appeared first on iCompareLoan Resources.

post

Usual refinancing reasons could save you money and help consolidate debts

Click on Usual refinancing reasons could save you money and help consolidate debts
for the source.
Author: Ravi Philemon

Usual refinancing reasons, the ones that you most often have, can help you save money and to consolidate debts

By: Hitesh Khan/

Save Money

To save money tops the list of most usual refinancing reasons.

Saving money through refinancing can be achieved in two ways:

  1. By obtaining a lower interest rate that causes one’s monthly mortgage payment to be reduced
  2. By reducing the term of the loan, thus saving money over the life of the loan. For example, refinancing from a 25-year loan to a 15-year loan might result in higher monthly payments, but the total interest paid during the life of the loan can be reduced significantly.

Stability And Security & Consolidate Debt

usual refinancing

One of the most usual refinancing reasons is to save money (Image credit: Alpha Stock Images)

Other usual refinancing reasons are to convert their adjustable loan to a fixed loan, and to consolidate debts by replacing high-rate loans with a low-rate mortgage.

The main reason for doing this is to obtain the stability and the security of a fixed loan. Fixed loans are very popular when interest rates are low, whereas adjustable loans tend to be more popular when rates are higher. When rates are low, homeowners refinance to lock in low rates. When rates are high, homeowners prefer adjustable loans to obtain lower payments.

Another reason why homeowners refinance is to consolidate debts and replace high-rate loans with a low-rate mortgage. The loans being consolidated may include second mortgages, credit lines, student loans, credit cards, etc. In many cases, debt consolidation results in tax savings, since consumer loans are not tax deductible, while a mortgage loan is usually tax deductible.

Does Refinancing Add Up?

Mortgage Broker Singapore – Should I use one?

The answer to the question, “Should I refinance?” is a complex one, since every situation is different and no two homeowners are in the exact same situation. If you are refinancing to lower your monthly payments, the following calculation can be used as a general guide:

  1. Calculate the total cost of the refinance–example: $2,000
  2. Calculate the monthly savings–example: $100/month
  3. Divide the result in 1 by the result in 2–in this case 2000/100 = 20 months.  This shows the break-even time period. If you plan to live in the home for longer than this period of time, it likely makes sense to refinance.

Balloon About To Pop?

Sometimes, you do not have time to consider the most usual refinancing reasons as you may not have a choice – you are forced to refinance.

This happens when you have a loan with a balloon payment and no conversion option. In this case it is best to refinance a few months before the balloon payment is due. Whatever your reason for refinancing, consulting with a seasoned mortgage professional can save you time and money.

Today, consumers have a wide range of home loan packages to choose from compared to 10 years ago. For example, the fixed deposit pegged home loan introduced by DBS in 2014.

Home loans could also be tied up with programmes offered by banks such as the DBS Multiplier, which rewards customers with a higher interest rate on their deposits if they transact more with the bank, such as getting a home loan and crediting your salary to the bank. Do consider the offerings in the market.

Can a new loan offer you savings? Typically, a home loan package offers attractive rates for the first three years, following which the interest rates are adjusted upwards, which usually coincides with the end of the lock in period, offering borrowers a good opportunity to relook their loan.

In considering some of these usual refinancing reasons, you should also not ignore the personal factors. Factors like:

  • Refinancing a home loan would mean reassessing your credit standing.
  • Has your salary increased/decreased since the last assessment?
  • Have you taken up more loans?
  • Have you been paying your bills on time?

These factors will affect your credit score and willingness of the bank to refinance your loan.

Banks can come up with customised solutions to meet your needs whether it is to change the loan tenure or lower your monthly payments. Find the bank that offers you the best solutions. However, do note that generally if you stretch your loan tenure over a longer period, the interest payable at end of loan is higher.

Refinancing a home loan can offer you an opportunity to unlock cash from property. This alone would trump all refinancing reasons for most home owners seeking new mortgage loans.

How to Secure a Home Loan Quickly

Do you want the best home loans but are unsure if you can get one? Don’t worry because trusted mortgage brokers can set you up on a path that can get you a home loan in a quick and seamless manner.

Alternatively you can read more about the Best Home Loans in Singapore before deciding.  Trusted brokers have close links with the best lenders in town and can help you compare Singapore home loans and settle for a package that best suits your home purchase needs.

Whether you are looking for a new home loan or to refinance,trusted mortgage brokers can help you get everything right from calculating mortgage repayment, comparing interest rates all through to securing the loan. And the good thing is that all their services are free of charge. So it’s all worth it to secure a loan through them.

The post Usual refinancing reasons could save you money and help consolidate debts appeared first on iCompareLoan Resources.

post

Higher interest rates charged for for personal loans, but why?

Click on Higher interest rates charged for for personal loans, but why?
for the source.
Author: Ravi Philemon

Why are higher interest rates charged for personal loans? Because they are unsecured loans.

By: Hitesh Khan/

You need money and fast. Without a great credit score or any type of collateral to your name, the only option is an unsecured personal loan. After searching the web, you have noticed the interest rates are substantially higher than other types of loans out there. The fact doesn’t change that you still need to borrow the money, but now you cannot help wondering, “Why are higher interest rates charged on personal loans.”

Most personal loans are granted as unsecured loans. Borrowers don’t necessarily need to have the best credit or even any type of collateral as that is not the primary concern for the providers of these types of loans. Unsecured loans are provided more on good faith and what lenders need to provide are their name, social security and income verification.

No collateral is needed so if the loan goes into default, the lender will not get anything in return. Higher interest rates charged are the price to pay for not having collateral or a co-signer on these types of loans.

Because the lender is not operating with any type of collateral from the borrower, they are taking a greater risk. With that great risk comes higher interest rates as that is what a borrower can offer to a lender in that higher risk situation; a bigger rate of return.

Banks or other financial institutions do not usually process unsecured personal loans, thus the rules for loaning the money are not as closely monitored by the Government (although new rules regarding interest rate caps sometimes loom on the horizon).

The higher interest rates charged are justification for that reason as well.

With bigger risks come bigger payouts. Whether it is in the guise of starting your own company, putting all the money on one horse to win or by lending high-risk borrowers money, the returns are greater because of the bigger chance taken. Unsecured personal loans are a great way to borrow money quickly if you are in a pinch, but it is less than likely a great bargain will be found on the higher interest rates charged that you will have to pay.

Licensed Moneylenders 

If you are in a bit of a pinch and all the doors appear to have closed, you can also consider licensed moneylenders. Moneylenders in Singapore have to be registered and licensed with the Registry of Moneylenders. Most moneylenders operate with the goal of offering instant cash loans to Singaporeans, Permanent Residents and foreigners in Singapore. Moneylenders offer fast, hassle-free and efficient services to their clients.

Licensed moneylenders are useful to people who may find it highly challenging to procure a significant amount of money in a short span of time.

Licensed moneylenders being providers of non conventional personal loans will simplify your application process thereby making the cash loan more readily available.

But before you approach a licensed money lender, consider other alternatives, such as the various financial assistance schemes offered by various Government agencies. As you are legally obliged to fulfil any loan contract you enter into with a licensed moneylender, consider whether you are able to abide by the contractual terms, bearing in mind your income and financial obligations.

Borrow only what you need and are able to repay. Be mindful that if you are unable to meet the contractual terms, the late payment fees and interest payment will be a financial strain not just on yourself but also on your family. The law requires moneylenders to explain the terms of a loan to you in a language you understand and to provide you with a copy of the loan contract. Make sure you fully understand the terms of the contract, in particular, the repayment schedule, the interest rate charged and the fees applicable.

Regardless of how much of a financial crunch you are in, you should always shop around different moneylenders for the most favourable terms. You should not rush into and commit yourself to a loan until you are satisfied with the terms and conditions.

But whatever your financial difficulty may be, never, ever borrow from unlicensed money lenders. The loans they offer are predatory in nature, with much higher interest rates, and will entrap you.

How to Secure Personal Loans Quickly

If you are in a financial crunch and are searching for personal loans to expand your business, trusted loan consultants can set you up on a path that can get you a it in a quick and seamless manner. Trusted loan consultants have close links with the best lenders in town and can help you compare various loans and settle for a package that best suits your needs. You should also find out money saving tips.

You should also look at Affordability Tools to help you make better property buying decisions. Good Calculators can help you ascertain the fair value of a property and find properties below market value in Singapore.

If you are looking for a new home loan or to refinance, trusted Mortgage brokers can help you get everything right from calculating mortgage repayment, comparing interest rates all through to securing the best home loans in Singapore. And the good thing is that all their services are free of charge. So it’s all worth it to secure a loan through them for your business expansion needs.

The post Higher interest rates charged for for personal loans, but why? appeared first on iCompareLoan Resources.

post

Borrowing fixed amounts may be easiest with personal loans

Click on Borrowing fixed amounts may be easiest with personal loans
for the source.
Author: Ravi Philemon

When you carefully analyse, you will realise that to choose personal loan may be the most sensible option when borrowing fixed amounts over a short period of time

By: Hitesh Khan/

While a credit card is a common way to borrow a small amount of money for a short time, and a mortgage a common way to borrow a large amount, unsecured personal loans can be the best way to borrow a fixed amount of between $500 and $50,000.

borrowing fixed amounts

image credit: Alpha Stock Images

People borrowing fixed amounts should choose personal loan as it may be a cheaper option

For borrowing a certain fixed amount personal loans often work out the cheapest option when compared to borrowing on a credit card or working into your overdraft. However, to get the most out of your unsecured personal loan you need to know what to look out for.

How much can you borrow on a personal loan?

Unsecured personal loans are typically for borrowing anywhere from $500 to $50,000. Generally speaking loans are cheaper the higher the amount you borrow (as the lender is guaranteed more in interest repayments), although the upper limit for personal unsecured loans tends to be up to $50,000. Above that will usually be secured loans.

How do I know if a loan is good value?

Before you borrowing fixed amounts, you should know that the main criteria to look out for when comparing loans is the APR, or ‘annual percentage rate’. The APR is what loan companies will advertise to you, and is an interest rate that includes fees and charges you will pay to give you an idea of the actual interest rate you will pay over the course of a year. Loan providers are required by law to show you an APR so you can compare between different loans. The higher the APR, the more you will pay in interest over the lifetime of your loan.

What is a ‘representative’ APR?

Unfortunately, whilst APR is certainly the best way to compare different loans, finding out which APR you will be offered is trickier. A representative ‘APR’ shows you the interest rate that at least 51% of people who applied for the loan were offered.

That means that when you apply you may be offered a higher rate based on your credit history. Unfortunately you have no way of knowing this until you apply for the loan, which will leave a footprint on your credit file. Too many footprints and you may be turned down for loans in future.

What else should I know before borrowing fixed amounts?

The majority of loans make their money – and hence justify the lower APRs – by fixing the rate and term of the loan. So, for instance, if you borrow $1,000, you will know from the outset exactly how much per month you will be repaying and what your total interest payments are.

To counteract you paying back the loan early, loan providers may charge you early repayment penalties if you try and pay back too much of your loan too quickly. Some loan providers won’t charge this, so read the fine print.

Before you choose personal loan for borrowing fixed amounts, you should also know the difference between secured and unsecured loans. Secured loans are linked to your property, so if you can’t pay back the loan your home may be repossessed, making them a very risky proposition.

Investing in the future is expensive. Be it an education, a home or a car, sometimes a loan is the only option to get a hold of a big-ticket item. Before you borrowing fixed amounts, it is important to look at the situation from the bank’s perspective.

To the bank, loans are a major source of revenue. The bank cuts you a check for a certain amount of money (principal), and you give the bank that same amount of money back as well as the interest. Interest payments are the lifeblood of most banks. Loans aren’t handouts, and financial institutions which give out loans are not in the business of being charitable. A bank’s primary concern is determining whether or not you will be able to pay back your debt.

If you don’t seem like a picture-perfect loan candidate, getting stuck with higher interest rates and fewer loan alternatives is likely. And if you have few assets, bad credit and/or are barely scraping by, chances are that lenders won’t be calling you back.

How to Secure Personal Loans Quickly

If you are in the debt overload zone and are searching for personal loans to ease your crunch, loan consultants may be your answer to set you up on a path that can get you a it in a quick and seamless manner. Loan consultants have close links with the best lenders in town and can help you compare various loans and settle for a package that best suits your needs. You should also find out about money saving tips.

You should also consider Affordability Tools which can help you make better property buying decisions. Calculators can help you ascertain the fair value of a property and find properties below market value in Singapore.

If you are looking for a new home loan or to refinance, Mortgage brokers can help you get everything right from calculating mortgage repayment, comparing interest rates all through to securing the best home loans in Singapore. And the good thing is that all their services are free of charge. So it’s all worth it to secure a loan through them for your business expansion needs.

The post Borrowing fixed amounts may be easiest with personal loans appeared first on iCompareLoan Resources.