Credit News

How SMEs Can Use Property Loans to Lower Their Borrowing Costs #203k #loan

#low interest rate personal loans

How SMEs Can Use Property Loans to Lower Their Borrowing Costs Monday, 16 November, 2015

Aktive Learning

By Paul Ho (guest contributor)

Singapore’s SMEs makes up 99% of all enterprises, employ 66% of the workforce and account for 48% of the GDP. SMEs are defined as having revenues of less than $100m and with a staff of less than 200.

Singapore has narrowly averted a technical recession. But the PMI is below 50%, indicating a contraction in the manufacturing sector.

Figure 1: Purchasing Manager’s Index (PMI), Singapore Institute of Purchasing and Materials Management (SIPMM)

SMEs have limited access to loans during tough times

A drop off in demand means that companies are hardly growing their top lines and may go into the red. This is especially true for SMEs with less than $10m in revenues.

Figure 2: Singapore Quarterly GDP Growth rate (TradingEconomics, SingStats)

Singapore’s corporate default rate of Corporations listed on the SGX is below 2%. SMEs likely have a higher default rate of at least 3 to 4%.

Figure 3: Corporate NPL Ratio, Financial Stability Review 2014, MAS

During the Global Financial Crisis in 2008, Singapore’s SMEs experienced a limited access to capital and funding. This led the government to enhance the various schemes that are in place to help SMEs retain access to credit. Most of these schemes involve the government risk-sharing with the banks on loans to SMEs.

In short, this means that during tough times the banks cut back on SME lending exposure due to the potentially higher Non-Performing Loan risks. Hence funds will likely dry up during uncertain economic periods when SMEs need credit the most. Hence SMEs will be exposed to elevated funding disruption risks and increased cost of funding during recessionary periods, and need to take action now to secure funding.

Discerning future interest rate trends by looking at the bond yield curve

The bond yield curve gradient has become less steep, indicating slower growth. There is also higher mid and long term interest rate expectations, indicating inflation expectations or simply a higher interest rate environment. The 20 year Bond is currently at 2.9%.

Figure 4: Singapore Bond Yield Curve End 2014 versus Nov 2015, Asian Development Bank

Hierarchy of Borrowing Costs: Secured versus Unsecured Loans

The impending weakness in the economy poses greater risks to SMEs than to large corporations.

Secured lending refers to lending in which an asset is pledged. Secured lending presents less risk to the lender and hence they charge lower interest rates.

Unsecured lending does not require pledged assets. Hence this presents greater risk to lenders and are more expensive. Small businesses usually have fewer assets to collateralize against and hence use secure loans less frequently. Unsecured Business Term Loan rates for SMEs are usually in the 10+% range, depending on loan size as well as tenure.

The Micro Loan Program by Spring Singapore is also a good source of funding. However, not many companies qualify, and for those who qualify, they may not be able to obtain the maximum $100,000 loan. Interest costs start from 5.5% with up to a four year tenure.

Problems faced by SMEs and their owners in obtaining credit

Many SMEs may not have the right financing or salary structure. SME bosses tend to under-declare their income and instead declare dividends. Whilst this reduces their taxable income, with the new Total Debt Servicing Ratio (TDSR) rule, this also impedes many SME bosses from borrowing more to buy their homes.

SMEs are suffering a margin squeeze. Faced with borrowing costs of around 10%, labour costs that are 5 to 10% of revenue, and other operating costs which could take up another 5 to 15% of revenue, these businesses need a gross margin in excess of 30% just to break even. Not many industries can offer gross margins in excess of 30%. Hence SMEs are especially sensitive to top line growth for those with 20+ to 40% gross margins.

With market uncertainty, access to funds for SMEs could be even more restricted in the coming one to two years.

How can SMEs overcome high cost of funding issues?

SME bosses should start to realize that under-declaration of income impedes borrowing and start to rectify this situation to reflect their true income. While it is important to have a tax efficient salary structure using a combination of Salary, Director Fees and Dividends, it is worthwhile to review this to be eligible for adequate funding.

SMEs, especially those whose directors who are currently in their late 30s and early 40s and who have bought their own residential homes, could be sitting on tied up equity in their properties. Residential home loan rates are around 2%. They could free up this capital by refinancing their homes and use the money to invest prudently in their own business. With this reduced cost of funding, the business owners could immediately save

10% off borrowing costs.

Case Study: SME owned by 2 Directors and 3 Shareholders

Does it make sense to borrow against your home for a company in which you’re only one of the many directors?

In this case I came across, the company had two directors and three shareholders. The two Directors owned 35% each of the business, while the rest of the shareholders held 10% each.

They needed $500,000 of funds for business expansion.

We advised the firm to structure a Director’s resolution to approve the company to request for a Shareholder Loan to the company at a 5% interest rate. The two major shareholders cum Directors held 70% of the shares, and hence were allotted $350,000 of the loan amount. Shareholders or Directors who did not wish to lend to the company at the approved 5% interest rate may give up their allotment. The unused allotment may be used by the other directors/shareholders equally.

These two major shareholders then refinanced their residential property loan with a cash out (equity term loan) of $400,000 at 1.8% interest. They then lent their company $400,000 at a 5% interest, making a decent return on their loan to their own company. Another two shareholders took up their allotment and lent the company $100,000 at the same 5% interest.

In this way, the company had access to cheaper capital, boosting its chances of survival and creating a fair debt offering for all directors and/or shareholders who wanted to participate. It’s similar to preferential bonds which only Directors and shareholders can participate in.


SME owners should get their personal income structure right to optimize for both tax efficiency and borrowing capacity. They can then leverage on cheaper secured mortgages to free up equity from their house to lower their business borrowing costs by structuring a Director’s Loan to company.

In order to lock in low rates from the residential property equity loan (cash out), it might be safer for SME owners to consider a three to five year fixed rate structure to hedge against rising interest rates.

Investors with at least $300,000 of spare cash could also get in on the game to bridge the gap left behind by banks and lend to growing companies who can afford to pay 14 to 18% per annum in interest costs. But thorough risk assessment needs to be done to minimize default rates. Convertible loans can also be structured to give investors additional upside if there is a liquidity event (e.g. acquisition).

By Paul Ho, holder of an MBA from a reputable university and editor of Singapore’s first Cloud-based Home Loan reporting platform used by Property agents, financial advisors as well as Mortgage brokers. Posted courtesy of a Singapore property blog dedicated to helping you understand the real estate market and make better decisions. Click here to get your free Property Beginner’s and Buyer’s Guide .

How Do Physician Loans Work? #high #risk #loans

#physician loans

Physician Loans

In this Article:

What is a Physician Loan?

Physician loans, also referred to as doctor loans, present a unique set of circumstances for lenders because new doctors do not have any work history and usually have a significant amount of student loan debt. This situation will typically prevent physicians from getting approved on any conforming conventional products, so many banks have developed special portfolio products to originate and service these types of loans. Along with taking a risk to accommodate these borrowers, there also comes reward.

Why Do Banks Offer Physician Loans?

Cross-Selling Physicians will most likely turn into future “high-earning” borrowers who will soon need some place to do their banking and investing.

Low Default Rates The default rates on these loans are substantially below normal levels.

Referrals Physicians (including doctors, dentists and veterinarians) are a group of professionals who typically would recommend their bank to their colleagues.

Unique Criteria for Physician Loans

These loans, since they are lender portfolio products, do not have the same characteristics or qualifying criteria. Many will have some or all of the following unique options:

  1. Made only to their target group (doctors, dentists and veterinarians).
  2. Require very little down payment (0-5 percent).
  3. Normally does not require private mortgage insurance (PMI), even if less than 20 percent down payment.
  4. Often does not include student loan payments in debt-to-income ratio (or a lesser payment).
  5. Will accept a contract as evidence of future earnings—in lieu of pay stubs or W-2s, which don’t yet exist.
  6. Interest rate will be slightly higher than conventional rates, but there normally would be no difference in rates even if loan amount is a jumbo size ( $417,000).

Many banks covet these loans for the borrower’s high earning capability and the potential to cross-sell additional bank products. These loans are rarely in default and promote goodwill among a profession that banks find extremely profitable to do business with.

Housing Grants for Disabled Veterans – Home Loans #standard #bank #loans

#housing loans

Home Loans

Housing Grants for Disabled Veterans

VA provides grants to Servicemembers and Veterans with certain permanent and total service-connected disabilities to help purchase or construct an adapted home, or modify an existing home to accommodate a disability. Two grant programs exist: the Specially Adapted Housing (SAH) grant and the Special Housing Adaptation (SHA) grant.

Specially Adapted Housing (SAH) Grant

SAH grants help Veterans with certain service-connected disabilities live independently in a barrier-free environment. SAH grants can be used in one of the following ways:

  • Construct a specially adapted home on land to be acquired
  • Build a home on land already owned if it is suitable for specially adapted housing
  • Remodel an existing home if it can be made suitable for specially adapted housing
  • Apply the grant against the unpaid principal mortgage balance of an adapted home already acquired without the assistance of a VA grant
  • View and share VA’s SHA infographic to help spread the word

Special Housing Adaptation (SHA) Grant

SHA grants help Veterans with certain service-connected disabilities adapt or purchase a home to accommodate the disability. You can use SHA grants in one of the following ways:

  • Adapt an existing home the Veteran or a family member already owns in which the Veteran lives
  • Adapt a home the Veteran or family member intends to purchase in which the Veteran will live
  • Help a Veteran purchase a home already adapted in which the Veteran will live


If you are a Servicemember or Veteran with a permanent and total service-connected disability, you may be entitled to a Specially Adapted Housing (SAH) grant or a Special Housing Adaptation (SHA) grant. The table below provides an overview of VA’s housing grant programs for Veterans with certain service-connected disabilities.

Specially Adapted Housing (SAH) Grant

Home Loans #college #grants

#home loan rate

If you want.

Choose a Fixed-Rate Loan. Your principal and interest payments will be fixed for your entire loan term (10 to 30 years). Check rates .

Are you.

Enjoy fast, free pre-approval. Learn about Smart Lock (a 90-day rate lock you can set up even before you find your home).

CEFCU offers both Construction/Permanent and Construction/Completion Home Loans. Both feature a 6-month rate lock and just one set of closing costs. So what s the difference? It depends on how your builder works. For more information, email us or call 1.800.542.3328, ext. 33424.

Ready for your first home?

Learn about free pre-approval and Smart Lock (a 90-day rate lock you can set up even before you find your home). Ask about low-down-payment programs like Take Five and USDA Rural Housing. Request a free First-Time Home Buyer Kit. And give us a call to learn about current grants and other options.

Every CEFCU Home Loan features competitive rates and low closing costs we don t mark up third-party costs like other lenders may do. Jumbo Loans are also available.

Home Loan FAQs

Fixed-Rate Loans are available in 10-, 15-, 20-, or 30-year terms. Principal and interest payments remain unchanged for the life of the loan; and the longer your term, the lower your payment may be. Shorter loan terms may help you to build equity quickly, but your monthly payment will be higher.

An Adjustable-Rate Mortgage (ARM) offers a lower initial interest rate, with the trade-off that the interest rate can change periodically, so your monthly payment could go up or down accordingly.

When choosing an ARM, you should consider whether you could afford potentially higher loan payments in the future. An ARM may be right for you if your income is likely to increase or if you only plan on being in the home for three to five years.

ARM Terms

Adjustment Period: With most ARMs, the interest rate and monthly payment will remain the same for an initial time period (usually one, three, five, or seven years). After the initial adjustment period, the interest rate can change every year. For example, one of CEFCU’s most popular is a five-year ARM. The interest rate will not change for the first five years (the initial adjustment period) but can change every year after the first five years.

Index: CEFCU’s ARM interest rate changes are tied to changes in an index rate. Using an index to determine future rate adjustments provides you with assurance that rate adjustments will be based on actual market conditions at the time of the adjustment. The current value of most indices is published weekly in the Wall Street Journal. If the index rate moves up, so does your mortgage interest rate; and you will probably have to make a higher monthly payment. On the other hand, if the index rate goes down, your monthly payment may decrease to your rate floor.

Margin: To determine the interest rate on an ARM, CEFCU adds a pre-disclosed amount to the index called the margin. If you’re still shopping, comparing one lender’s margin to another’s can be more important than comparing the initial interest rate because it will be used to calculate the interest rate you will pay in the future.

Interest-Rate Caps: An interest-rate cap places a limit on the amount your interest rate can increase or decrease. There are two types of caps:

  • Periodic or adjustment caps, which limit the interest rate increase or decrease from one adjustment period to the next.
  • Overall or lifetime caps, which limit the interest rate increase over the life of the loan.

As you can imagine, interest rate caps are very important because no one knows what can happen in the future. At CEFCU, a member’s loan can only change once a year; your rate cannot adjust to more than 2 percent in a year or 6 percent throughout the life of the loan. All of the ARMs CEFCU offers have both adjustment and lifetime caps. Please see each product description for full details.

Negative Amortization: Negative Amortization occurs when your monthly payment changes to an amount less than the amount required to pay interest due. If a loan has negative amortization, you might end up owing more than you originally borrowed. None of the ARMs CEFCU offers allow for negative amortization.

Prepayment Penalties: CEFCU never charges a penalty for prepayment. Some lenders may require you to pay special fees or penalties if you pay off the ARM early.

Selecting a mortgage may be the most important financial decision you will make, and you are entitled to all the information you need to make the right decision. If you have questions about the features of ARMs, email CEFCU; call 309.633.3424 or 1.800.633.7077, ext. 33424; or visit a Member Center.

Fixed-Rate Loans are available in 10-, 15-, 20-, or 30-year terms. Principal and interest payments remain unchanged for the life of the loan; and the longer the term, the lower your payment. With a Fixed-Rate Loan, you know your principal and interest payment during the entire term of the loan, which can mean more peace of mind.

An ARM is a loan type that offers a lower initial interest rate than most fixed-rate loans. The trade-off is that the interest rate can change periodically, usually in relation to an index, and the monthly payment will go up or down accordingly. Adjustable rates allow you to qualify for a larger loan, but the rates do vary annually after an initial period. Rates are capped, but they can increase.

Use the calculators to determine your payments for different types of loans. Apply online; email CEFCU; call 309.633.3424 or 1.800.633.7077, ext. 33424; or visit a Member Center to get started.

A 15-year Fixed-Rate Loan gives you the ability to own your home free and clear in 15 years. While the monthly payments are higher than a 30-year loan, the interest rate on the 15-year mortgage is usually lower. More important you’ll pay less than half the total interest cost of the traditional 30-year mortgage. Many borrowers find the higher payment out of reach and choose a 30-year mortgage. It still makes sense to use a 30-year mortgage for most people.

Home Owner Loans #monthly #car #payment

#refinance loans

MassHousing Refinance Loans

Refinancing your mortgage through MassHousing can save you money and reduce the risk of high payments in the future.

MassHousing Refinance loans offer a number of benefits:

  • 30-year terms
  • Fixed interest rates, meaning your payment will always remain the same
  • Mortgage Insurance with MI Plus mortgage payment protection
  • Loans serviced by MassHousing, so you’ll know who to call with questions or concerns

Income Limits and Other Restrictions

  • Borrowers must meet income limits. which vary by community
  • Loans may be used to refinance mortgages on condominiums and 1- to 4-family homes

How to Apply

MassHousing Refinance Loans are originated by participating lenders. For more information or to apply, contact a participating lender .

DU Refi Plus for Existing MassHousing Borrowers

DU Refi Plus is a Fannie Mae, no-cash-out refinance program offering reduced verification and documentation. MassHousing is making DU Refi Plus available to existing MassHousing borrowers who have a conventional first mortgage sold to and owned by Fannie Mae on or before June 1, 2009. Borrowers must meet income limits. which vary by community.

Home loans rates #government #personal #loans

#home loans rates

When you re just starting out, you may not have the recommended 10% — 20% for a down payment. That s why Mountain America offers the 100% First-Time Home Buyer Loan Program. It allows you to purchase your first home with as little as $1000 down

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Prepayments and a Large Down Payment Can Cut Mortgage Interest

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Home Loans Home #student #loan #interest #rates

#apply for a loan

Home Loans

Prairie Band of Potawatomi Nation Signs Monumental Agreement with VA

An Important Public Health Notice: The VA recommends testing your new home for radon, which the government has determined can cause lung cancer. To learn more click here.

About Home Loans

VA helps Servicemembers, Veterans, and eligible surviving spouses become homeowners. As part of our mission to serve you, we provide a home loan guaranty benefit and other housing-related programs to help you buy, build, repair, retain, or adapt a home for your own personal occupancy.

VA Home Loans are provided by private lenders, such as banks and mortgage companies. VA guarantees a portion of the loan, enabling the lender to provide you with more favorable terms.


Purchase Loans help you purchase a home at a competitive interest rate often without requiring a downpayment or private mortgage insurance. Cash Out Refinance loans allow you to take cash out of your home equity to take care of concerns like paying off debt, funding school, or making home improvements. Learn More

Interest Rate Reduction Refinance Loan (IRRRL): also called the Streamline Refinance Loan can help you obtain a lower interest rate by refinancing your existing VA loan. Learn More

Native American Direct Loan (NADL) Program: helps eligible Native American Veterans finance the purchase, construction, or improvement of homes on Federal Trust Land, or reduce the interest rate on a VA loan. Learn More

Adapted Housing Grants: help Veterans with a permanent and total service-connected disability purchase or build an adapted home or to modify an existing home to account for their disability. Learn More

Other Resources: many states offer resources to Veterans, including property tax reductions to certain Veterans. Learn More

Eligibility Requirements

Your length of service or service commitment, duty status and character of service determine your eligibility for specific home loan benefits.

Purchase Loans and Cash-Out Refinance: VA-guaranteed loans are available for homes for your occupancy or a spouse and/or dependent (for active duty service members). To be eligible, you must have satisfactory credit, sufficient income to meet the expected monthly obligations, and a valid Certificate of Eligibility (COE). Learn More

Interest Rate Reduction Refinance Loan (IRRRL): The IRRRL is a “VA to VA” loan, meaning it can only be done if you have an existing VA guaranteed loan on the property. The IRRRL is generally performed to lower the interest and reduce the monthly payment on the existing VA guaranteed loan. Learn More

Native American Direct Loan (NADL) Program: The NADL program helps Native American Veterans purchase, construct, improve, or re-finance a home on Native American trust lands. Your tribal organization must participate in the VA direct loan program. You must have a valid Certificate of Eligibility (COE). Learn More

Adapted Housing Grants: VA helps Veterans with certain total and permanent disabilities related to your military service obtain suitable housing with either a Specially Adapted Housing (SAH) or Special Housing Adaptation (SHA) grant. Learn More

How to Apply

Purchase Loan Cash-Out Refinance: VA loans are obtained through a lender of your choice once you obtain a Certificate of Eligibility (COE). You can obtain a COE through eBenefits. by mail, and often through you lender. Learn More

Interest Rate Reduction Refinance Loan: A new Certificate of Eligibility (COE) is not required. You may take your Certificate of Eligibility to show the prior use of your entitlement or your lender may use our e-mail confirmation procedure in lieu of a certificate of eligibility. Learn More

Native American Direct Loan (NADL) Program: First, confirm that your tribal organization participates in the VA direct loan program. NADL loans are obtained through a lender of your choice once you obtain a Certificate of Eligibility (COE). You can obtain a COE through eBenefits. by mail, and often through you lender. Learn More

Adapted Housing Grants: You can apply for an SAH or SHA grant by either downloading and completing VA Form 26-4555 (PDF) and submitting it to your nearest Regional Loan Center, or completing the online application. Learn More

Home Loans For Blacklisted People – Debt Repair #loan #lenders

#loans for blacklisted people

Home Loans For Blacklisted People


A question we receive often is whether there are ways and means of securing home loans for blacklisted people in South Africa. The short and simple answer is YES, but it will take a little extra effort on your behalf to secure these types of mortgages.

Most lenders and banks are not likely to look very favorably on any home loan application that involves an applicant with bad credit records or a blacklisting.

In the current financial climate the banks are looking to reduce their risk when lending money to their clients. Blacklisted clients represent some of the most high risk clients for the bank.

The first step to getting a home loans for blacklisted people is to speak to the bank’s personal financial consultants. You need to assess how much you can afford to spend on a home loan every month before committing to any more large debts.

A home loan is one of the biggest investments you will ever have to make, and it would be wise to first consider all your options.

There are a number of financial institutions that focus on supplying home loans for blacklisted clients .

These companies are much more accommodating than the usual banks, but there are some disadvantages. The interest rates offered by these types of lenders are usually very high, and they may require that your take out extra insurance to cover your bond amount.


Beware of private loan companies who are unauthorized lenders. These businesses promise easy access to finance, but place unrealistic repayment requirements in their contracts.

Debt Consolidation

Debt consolidation loan for blacklisted client are considerably more easier to qualify for if you already own a property. These loans are granted by the banks based on the current market value of your property.

Alternative Options For Home Ownership

Another option would be to research Rent To Buy properties. Which allow you to rent the property you would like to purchase for a short period while you rebuild your credit status.

Home Loans NZ #bad #credit #loans

#home loan calculator

Home Loans

Interest Rates

We pride ourselves on offering you competitive interest rates, with the flexibility to choose between fixed and floating rate options, or a combination of both – whatever suits you best.

Payment Options

You can choose from a range of flexible payment options. Ask us how we can make it easy for you with direct debit, automatic payment and Telephone Banking services.

24 Hour Approval

In most cases, we can let you know within 24 hours whether your loan has been approved (provided we have all the necessary information and our lending criteria have been met). In some cases, we can even pre-approve your loan, making it easier when it comes to buying your property. Just ask us whether it’s right for you.


We appreciate that convenience is important in today’s busy world. When using your SBS chequebook, ATM/EFTPOS card or our Telephone Banking services, you have 24-hour access to your funds. You can manage your finances from any touch-tone phone or the network of ATM/EFTPOS machines around New Zealand and even overseas.

Home Loans: Compare home loans from UAE Banks #credit #card #loan

#compare home loans

Got a question?

How do I choose a home loan provider?

Compare, compare, compare! Use our smart comparison tools to choose the best home loan for you. You may also wish to consider using a mortgage advisor such as Best Rate, who will do the hard work for you, recommend the best product for your needs and help you through the entire process from consultation to completion.

What key criteria should I consider before taking out a home loan?

What is the difference between a Fixed Rate and a Variable Rate home loan?

With a fixed rate home loan, you repay a fixed rate for a set number of years. With a variable rate, the repayment amount varies with the market rate, which means your repayments can change as the rate changes.

Will a bank lend me the full amount required to purchase my property?

No. You will need to pay a down payment / deposit and the bank will also carry out a valuation of the property and base the amount they lend you on this value rather than the purchase price. Any difference between what the bank lends you and what you need to pay to buy the property needs to be paid by you. A bank will commonly lend you 70%-85% of the property value.

Do I need to have a down payment / deposit?

Yes. In the UAE, it is a requirement to pay a down payment or deposit. The amount required will depend on whether you are a UAE national, resident expat or non-resident as well as your employment status and whether you are a first time buyer.

Should I apply for a home loan before looking for a property?

We advise you to obtain a pre-approval, which will help you to determine your budget. A pre-approval normally has a validity of one to three months, which is the time you have to make an offer on your chosen property. Once done, you can proceed with obtaining the final offer and completing the transfer process.

Can I take out a home loan as a first time buyer, non-resident or if I am self-employed?

Yes. Depending on your individual situation, different documents are required. Your chosen provider will provide you with details.

What is an arrangement fee?

This relates to what the bank will charge you at the beginning of the loan and is normally added to your principal loan amount. Some banks may offer home loan products with no arrangement fee but others may charge a fixed fee or a percentage of your total loan amount.

What is an early settlement fee?

This relates to the fee applicable if you decide to pay off your loan early. If, for example, you take a home loan for 25 years but expect to be in a position to pay if off before then, any early settlement fee becomes an important factor in choosing your home loan provider.

What is the difference between Flat and Reducing Interest Rates?

Rates on home loans can be calculated in two ways as a reducing rate or as a flat rate. With a flat rate, the rate is calculated on the entire principal amount of a loan (the full, original amount borrowed) whereas with a reducing interest rate, interest is charged only on the outstanding amount of the loan on a periodic basis.

Flat interest rates are normally lower than the reducing balance rate and therefore considered misleading. When it comes to comparing loans, the best way to compare their true cost is to convert everything into the Reducing Interest Rate equivalent (click here  for more information)

How long do I have to settle my home loan?

Tenures range on mortgages so make sure you take into account the tenure period when choosing a home loan product. Be sure to consider early settlement fees as well, in the event that you are in a position to make early repayments and settle your debt early.

What if I wish to sell the property before paying off the loan?

You are free to sell your property as and when you choose. You’ll just need to repay the full outstanding balance of your home loan at the time of sale.

What documents do I need in order to apply for a home loan?

Your residency and employment status will determine the exact documents you will require to submit on application. Your chosen loan provider will provide you with all details.

Do I need to transfer my salary to my home loan provider?

Not necessarily but doing so will often get you a better rate as you are then considered less risky to the institution.

Do I need to take out insurance on my home loan?