Mortgage Protection, Financial Reliefs and Other Saving Tips for Home Buyers
11 December 2020 | 2-mins read
Here are some helpful tips for those paying off home loans especially in challenging economic times.
It is important to have some degree of financial security when buying a home. However, circumstances change, many home buyers might be asking themselves how they can pay off their home loans without struggling.
Some financial planning tips if you are paying off your home loan
Financial planning is needed to ensure that households emerge intact. For those paying off home loans, the prospect of financial insecurity and the repayment of a housing loan to protect the roof over our heads might be worrying in challenging economic times.
Here are some financial planning tips to protect your home and your finances.
a) Know what financial relief you are eligible for
The banks may have a raft of relief measures to offer financial support to individuals and businesses. You may check with the banks to find out what are the relief measures available.
b) Check with your bank if you are having difficulty repaying your loan
If you have taken out a bank housing loan rather than a HDB loan, check with your bank if you are having difficulty repaying your loans rather than remaining silent.
Your bank’s home loan relief scheme might allow you to defer your loan repayments or waive interest payments.
c) Set aside money for the future
It is always important to be meticulous about planning for the future. An economic recession will require you to tighten your belt and ensure you are putting aside cash for rainy days.
One option to do so is to purchase an insurance savings plan that instils the discipline to pay premiums regularly while at the same time potentially helping your wealth to grow. A portion of the premiums you pay will be put towards an investment portfolio. Upon maturity of your plan, you will benefit from the investment potential gains that the portfolio may made. Growing your wealth rather than simply saving money enables you to reach your financial goals faster.
d) Protect your family with mortgage insurance
It is important to ensure that your family stays safe no matter what. Should something happen to you, you want to ensure that your family is not saddled with the burden of repaying your mortgage.
Mortgage protection shields your family from financial strain if you pass away or are diagnosed with a terminal illness. In such circumstances, your insurance payout can help to repay your home loan in your place, so your family does not have to take on the financial burden of doing so.
Let’s have a look at what type of benefits Manulife’s ManuProtect Decreasing (II) / ManuProtect Decreasing Lite (II) mortgage protection insurance plans can offer:
- Upon death or diagnosis with a terminal illness, the policy offers a lump sum payout that can be used to pay off your home loan.
- No health check-ups for applicants aged 50 and below (only available for ManuProtect Decreasing Lite (II)),
- Enjoy fixed and level premiums on the basic plan for the entire policy term.
- Additional protection with riders for critical illness and total and permanent disability.
A mortgage insurance plan offers the peace of mind that your home will always be available for your family to live in no matter what happens to you.As a homeowner, ensuring that your home loan continues to be repaid should be a priority. Click here to find out how to protect your family and your home with mortgage insurance.
Are you a first-time homeowner? Check out our 6-steps guide on buying your first home with our insurance saving plans.
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Important Notes:
ManuProtect Decreasing (II) / ManuProtect Decreasing Lite (II) and its supplementary benefits are underwritten by Manulife (Singapore) Pte. Ltd. (Reg. No. 198002116D). This advertisement has not been reviewed by the Monetary Authority of Singapore. Buying a life insurance policy is a long-term commitment. This policy has no cash value. Buying health insurance products that are unsuitable for you may affect your ability to finance your future healthcare needs. This article is for your information only and does not consider your specific investment objectives, financial situation or needs. It is not a contract of insurance and is not intended as an offer or recommendation to purchase the plan. You can find the full terms and conditions, details, and exclusions for the mentioned insurance product(s) in the policy contract.
This policy is protected under the Policy Owners’ Protection Scheme which is administered by the Singapore Deposit Insurance Corporation (SDIC). Coverage for your policy is automatic and no further action is required from you. For more information on the types of benefits that are covered under the scheme as well as the limits of coverage, where applicable, please contact us or visit the LIA or SDIC websites (www.lia.org.sg or www.sdic.org.sg).
We recommend that you seek advice from a Manulife Financial Consultant or its Appointed Distributors or visit any DBS/POSB Branch before making a commitment to purchase a policy.
All information is correct as of 11 December 2020.
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