Under the Government Employees Housing Scheme, a mortgage-based housing loan is a loan accessed from a registered financial institution for the purposes of buying, building and/or renovating your house with your house being held as security for the loan. Generally, such loans have the following features:
- Bond registration costs
- Estate agent’s commission priced-in (ordinarily paid by the seller of the house)
- Related insurances
- Average repayment term of 20 years and more
- Loan subject to affordability, value of the house and lenders’ terms
- Valuation and inspection of the house
- Government employees may access this type of housing loan through lenders who participate in the GEHS. All employees are required to first enroll with the GEHS to access any and all services offered by scheme.