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Mortgage matters 101: Income-weighted average age

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Old 24-09-2013, 11:21 AM   #1
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Mortgage matters 101: Income-weighted average age

We've gotten a few queries regarding property loans so we thought to share a series of educational information for those looking to take up a mortgage. We hope you will find these useful!

Along with the “property cooling measures” announced on 29 June 2013, the Monetary Authority of Singapore (MAS) introduced the use of the income-weighted average age (IWAA) for the calculation of loan tenure. IWAA only affects joint applicants of a property and it serves to provide a better gauge of their combined ability to repay the loan.

IWAA is calculated by taking the average age of the borrowers, weighted by their respective gross incomes. Here’s how the formula works.



In the case when IWAA is 36 years, assuming it’s for the first private property, 80% financing, maximum loan tenure will be 29 years (65 – IWAA = 65-36 =29).

In the case when IWAA is 44 years, assuming it’s for the first private property, 80% financing, maximum loan tenure will be 21 years (65 – IWAA = 65-44 =21).

The above are just general examples. For a detailed assessment, please contact our friendly OCBC Direct Acquisition Officer at 65794444 during office hours.


^Darren
From OCBC Bank
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Old 24-09-2013, 01:29 PM   #2
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Currently if we need to refinance mortgage loan we need to recalculate and determine the TDSR thing right ?

Whats the other term called to redo the loan package within the bank ? Is this the current only way to "refinance" so as to bypass the TDSR ?
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Old 27-09-2013, 05:36 PM   #3
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Currently if we need to refinance mortgage loan we need to recalculate and determine the TDSR thing right ?

Whats the other term called to redo the loan package within the bank ? Is this the current only way to "refinance" so as to bypass the TDSR ?
Hi Savagemp5,

You are right! If you are to refinance your loan from one bank to another, the refinance loan would be subject to TDSR.

When you change the interest rate package with your current bank, it is known as a re-pricing. Unfortunately, as re-pricing is considered to be refinancing under the current regulations, it would also be subjected to TDSR.

^Darren
from OCBC Bank
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Old 02-09-2015, 01:13 PM   #4
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What are the fees involved in refinancing?

What are the fees involved in repricing?

Thanks


Hi Savagemp5,

You are right! If you are to refinance your loan from one bank to another, the refinance loan would be subject to TDSR.

When you change the interest rate package with your current bank, it is known as a re-pricing. Unfortunately, as re-pricing is considered to be refinancing under the current regulations, it would also be subjected to TDSR.

^Darren
from OCBC Bank
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Old 02-09-2015, 05:47 PM   #5
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What are the fees involved in refinancing?

What are the fees involved in repricing?

Thanks
Hi sgdividends,


Thank you for getting in touch with us.

For fees involved in refinancing, please refer to your Letter of Offer for the various charges.

There is generally a conversion fee levied for repricing. If you wish to explore repricing options for your home loan, you can reach us at 1800 363 3333.

^Wilson
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Old 04-09-2017, 09:41 PM   #6
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How does ocbc mortgage plans compare in terms of pricing with the other banks?
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Old 05-09-2017, 10:59 AM   #7
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How does ocbc mortgage plans compare in terms of pricing with the other banks?

Hi Zachery,


Thank you for your interest in our mortgage loans.

More information can be found on our website here: https://www.ocbc.com/personal-banking/loans/index.html

If you would like for a more detailed discussion, please feel free to leave us your contact details by completing the online enquiry form and our mortgage specialist will get back to you.

^WX
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