Singapore Mortgage follows the basic axioms of wealth and assets management and also intersperses new methodologies unique to the Singaporean financial security system. According to the dictionary, the term mortgage refers to property being kept as surety in case of a non-payment of debt. The etymological significance of the term mortgage can be derived from a jargon, popular in French legal colloquy that means a dead pledge.
One of the fundamental lineaments of mortgaging homes in Singapore is the funding of homes through the polar saving scheme, Central Provident Fund (CPF). The CPF, an undertaking of the Colonial
British Government came into being on 1 st July 1955 as the country's domestic pension scheme. Very soon the CPF established itself as an instrumental financial agency that was responsible for escalating Singapore household mortgages to soaring heights. In fact the year 1999 witnessed the monumental growth of 14% withdrawal for housing in the year 1999.
Currently, real estate is booming in Singapore and the Census 2000 maintains that the CPF regulations have aided the process to such heights that over 92% of the Singaporeans own their own home. The process of owning a home in Singapore is not as easy as it seems. Home ownership in Singapore can be bifurcated into:
- Private Home Ownership
- Public Home Ownership
The public housing system, under the jurisdiction of the Housing Development Board (HDB) is predominant and accounts for accommodating more than 81.3% of Singapore households which includes the proletariat low income group to the bourgeoisie upper middle class economy.
The less regulated private housing group is responsible for a mere 10% homes in Singapore. However, the private housing stock has increased substantially to 18.1 % in the year 1999. Another notable feature of
mortgage in Singapore is the pivotal role played by the HDB public finance sector that aids the HDB flat owners who are legally entitled to sub sized loan rates to enjoy the benefit of a lower mortgage rate.
