Tips Hartanah

Busting home ownership myths – Part #4

Myth #4: I can’t own a house

Feeling down from your down-payments

On the plus side, at least you've got a bare concrete room to cry yourself to sleep in.

On the plus side, at least you’ve now got a bare concrete room to cry yourself to sleep in.

It isn’t easy to fork out the necessary amount of cash to fund your down-payment, especially at current price levels. However, some developers offer zero down-payment plans for their units, so look out for them.

You need perfect credit

Image by www_slon_pics from Pixabay

Image by www_slon_pics from Pixabay.

Not necessarily. The better your credit score, the easier it is for you to get your loan approved. There will also be more loan options available at your disposal. Here are some ways to improve your credit rating:

  1. Never be late on your payments and pay up in full.
  2. Keep a steady job with a company that has been in business for a long time.
  3. Maintain an extensive credit history with a particular bank (banks want to know that you are a reliable bill payer).
  4. Maintain a diverse list of accounts in your credit score, such as mortgages, car loans, personal loans, and credit cards.

Interest rates are a pain

Pro tip: If it hurts, you probably shouldn't do it.

Pro tip: If it hurts, you probably shouldn’t do it.

Interest rates fluctuate over time. Choose the right loan packages that offer favourable interest rates according to your situational needs.

You will lose your house if you miss a loan repayment

Image by garyh18 from Pixabay

Contrary to popular opinion, not all bankers are goblins – the vast majority of bankers rely on functional muggles to act as paying customers. Image by garyh18 from Pixabay.

Banks do not enjoy foreclosing on a property and disconnecting themselves from a paying customer. They are reasonable and usually open to negotiation. Late payments incur penalty interest rates and one-off penalties which differ from one bank to another.

Pictured: not the work of a licensed financial institution.

Pictured: Not the work of a licensed financial institution.

If you fail to regularise the arrears by the end of 60 days, banks typically reserve the right to revise the interest rate accordingly. If you are prompt in your future payments, the revised interest rate may be reverted to the original rate – or it may not.


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