Half of Singaporeans unfamiliar with home loan paperwork

Two in five did not know that they can refinance their home loans.

Nearly half of Singaporeans were not familiar with the paperwork for home loans in H1 2020, according to a consumer sentiment study by PropertyGuru. At the same time, only 18% said that they are very familiar with the process.

Two in five respondents said they were not aware that they can refinance their home loans. Meanwhile, more than half indicated that they have used a home loan calculator before.

Seven in 10 indicated that they will start saving before looking for a home to buy. PropertyGuru noted, however, that the younger Singaporeans are more likely to start saving only after estimating the cost of the home they intend to buy.

Over a third of respondents felt that the ability to borrow 75% of a property’s value is too low, whilst 72% of respondents believed that property prices will continue to increase over the next five years.

PropertyGuru’s Sentiment Index -- which measures current real estate satisfaction, affordability, real estate climate, interest rate situation, perceived government efforts, and property prices -- rose 5 points to 45. The higher satisfaction level was driven by perceived government efforts (39%) and current real estate climate (52%).

The study found that younger Singaporeans, aged between 22 and 29, are the most optimistic about future property prices. Seven in 10 Singaporeans are looking to buy a home in Singapore, most of which are intent to buy within the next two years.

They cited future MRT lines (89%) and government Master Plans (82%) as key considerations for property purchase.