Attention Housing Applicants: Government Guarantee Allows for Easy and Convenient Application Process Without Mortgage Insurance
Today, we will discuss issues regarding housing applications and mortgage insurance. In the eyes of the Housing Authority, these two matters are unrelated. Applications are separate from mortgages. Housing applicants do not need to apply for mortgage insurance, but only need to pay the relevant fees in full when signing the sales agreement.
For housing applicants without income or assets, the government serves as the guarantor. This means that if the applicant is unable to repay the loan, the government will be responsible for repayment. With this guarantee, banks are more relaxed when approving housing mortgages. Applicants can borrow up to 90% of the mortgage loan without undergoing a stress test.
Housing Guarantee and Mortgage Application
The government serves as the guarantor for 30 years, starting from the first day the housing unit is sold.
For first-hand housing without land premium, applicants do not need to undergo a stress test or have income limits. If it is a second-hand housing unit without land premium, applicants need to check the remaining years of the guarantee period. Banks determine the mortgage ratio and repayment period based on the remaining guarantee period. If it is a second-hand housing unit with land premium, applicants can apply for it like a regular private unit, and first-time buyers can be exempt from the stress test.
For retirees with good credit records, banks are still likely to approve mortgage applications. The applicant only needs to sign a declaration to prove sufficient repayment ability. The same applies to newly minted adults, as banks understand that housing loans are often repaid by family members, especially parents. Therefore, we reiterate that applicants with zero income and zero assets can safely apply for housing, with the government guarantee allowing for a more relaxed application process without the need for mortgage insurance.
In summary, housing applicants only need to sign the sales agreement and pay the relevant fees, without the need for mortgage insurance. The government guarantee allows for a more relaxed application process, without stress tests or income limits. If you are a housing applicant with zero income and zero assets, do not worry. The government's guarantee will allow you to realise your housing dreams.