Home equity loans on the rise in Singapore but experts urge caution over their use for investments
Sign up now: Get ST's newsletters delivered to your inbox
The average amount of money owed on a home equity loan taken on a private property rose 15.5 per cent in the second quarter of 2025 from the same period a year ago.
ST PHOTO: KUA CHEE SIONG
- Home equity loan usage is rising; average loan amounts for private properties increased 15.5% year-on-year in Q2 2025, and 8.1% for ECs.
- These loans offer liquidity at lower interest rates, aiding business owners and others, but should not be used for high-risk investments.
- Risks include potential investment failure, exchange rate fluctuations on overseas properties and the need to pay monthly instalments in cash.
AI generated
SINGAPORE - Mr Leon Loh, a financial services consultant at Gen Financial Advisory, nearly took up a home equity loan in 2020, at the start of the Covid-19 pandemic.
At that time, he had already paid off the mortgage on his private property.
