Complete Home Loan Guide: Types, Rates, and Approval Tips

Types of Home Loans

The interest rate stays the same throughout the loan term. Monthly payments are predictable, making financial planning easier.

The interest rate fluctuates with market conditions. Generally lower than fixed rates initially, but carries the risk of future rate increases.

Fixed rate for an initial period, after which you choose between variable or a new fixed rate. Offers a balance of stability and flexibility.

Income and repayment ratio: Annual repayment should generally be 30–35% or less of annual income

Length of employment: Typically 2 or more years is the benchmark for approval

Credit history: Ensure no late payment records on credit cards or loans

Down payment: A down payment of 10–20% of the property price improves approval chances

Permanent residents can apply at almost all financial institutions

Available institutions vary depending on your visa status and remaining period

New Connection can introduce foreign-friendly lending institutions

Choosing a home loan requires careful consideration. New Connection offers free loan consultation — feel free to reach out.