What you need to know about Credit Bureau checks

At SmartLoans, we encounter many circumstances whereby customers are not wary that apart from relying on the amount of annual salary or monthly income to determine how much loan they are eligible for, other factors such as credit bureau, property valuation and monthly liabilities affect their loan eligibility too.

Monthly liabilities and credit bureau

There have been customers who have a large annual salary and would be able to afford any private properties that could cost up to millions of dollars but are not eligible for a bank loan. Why?

If you have a lot of monthly liabilities such as car loans, personal loans, business loans, etc, banks might have to consider giving you a home loan as they fear that after you have paid for those monthly installments, your monthly income would not be able to match up with your monthly liabilities and thus, taking up another loan would be out of the question. In Singapore, your monthly installments for mortgage should be capped to 30% of your monthly earnings. 

Also, if you have bad credit with your other loans, banks across Singapore will not be able to offer you a home loan. Bad credit bureau reflects negatively on you as a customer who does not pay his/her monthly installments regularly and no banks in Singapore would take a chance with such customers. 

Find out more on property valuation here