Application for bank mortgage loan

[mockingjayy]

Hello all,

Recently, was looking at the option to upgrade from an exisiting EA to an EC.
Was looking at option and actually submitted my bank loan application.

Reason to move is that the unit i am in, is already 18years old, with the amount of money i will need to pump for reno is not worthwhile. I rather pay the 5% booking fee with that cash.

But one issue is that 2-3 years ago, i've several bad debts with bank, loans/CC etc. But all was settled then.

Currently, i've no CC and no existing loan but only a car loan with balance of $47,000.

My monthly income is $13,000.00 and my NOA for 2016 total income is 204,000.00

I've an exisiting HDB loan which will be cleared after selling the HDB.

Do you think i will be able to get the loan (since mortgage is more of an secured loan)?

 

[Trazora]

Hello all,

Recently, was looking at the option to upgrade from an exisiting EA to an EC.
Was looking at option and actually submitted my bank loan application.

Reason to move is that the unit i am in, is already 18years old, with the amount of money i will need to pump for reno is not worthwhile. I rather pay the 5% booking fee with that cash.

But one issue is that 2-3 years ago, i've several bad debts with bank, loans/CC etc. But all was settled then.

Currently, i've no CC and no existing loan but only a car loan with balance of $47,000.

My monthly income is $13,000.00 and my NOA for 2016 total income is 204,000.00

I've an exisiting HDB loan which will be cleared after selling the HDB.

Do you think i will be able to get the loan (since mortgage is more of an secured loan)?

Think this webpage may be useful to you. https://www.99.co/blog/singapore/property-loan-approval/

 

[mockingjayy]

Thank you! But i hope there are people with the same situation and could advise more.

 

[newjersey]

Hello all,

Recently, was looking at the option to upgrade from an exisiting EA to an EC.
Was looking at option and actually submitted my bank loan application.

Reason to move is that the unit i am in, is already 18years old, with the amount of money i will need to pump for reno is not worthwhile. I rather pay the 5% booking fee with that cash.

But one issue is that 2-3 years ago, i've several bad debts with bank, loans/CC etc. But all was settled then.

Currently, i've no CC and no existing loan but only a car loan with balance of $47,000.

My monthly income is $13,000.00 and my NOA for 2016 total income is 204,000.00

I've an exisiting HDB loan which will be cleared after selling the HDB.

Do you think i will be able to get the loan (since mortgage is more of an secured loan)?

try hong leong or singapura finance.

don't think the local banks would loan u.

actually, no, they won't loan you cause they are conservative.

but let us know the outcome pls.

 

[Trazora]

Thank you! But i hope there are people with the same situation and could advise more.

It really depends on the risk appetite of the banks. Suggest you get in-principle approval from the banks and see which ones are willing to give you the loan.

 

[htngwilliam]

Hello all,

Recently, was looking at the option to upgrade from an exisiting EA to an EC.
Was looking at option and actually submitted my bank loan application.

Reason to move is that the unit i am in, is already 18years old, with the amount of money i will need to pump for reno is not worthwhile. I rather pay the 5% booking fee with that cash.

But one issue is that 2-3 years ago, i've several bad debts with bank, loans/CC etc. But all was settled then.

Currently, i've no CC and no existing loan but only a car loan with balance of $47,000.

My monthly income is $13,000.00 and my NOA for 2016 total income is 204,000.00

I've an exisiting HDB loan which will be cleared after selling the HDB.

Do you think i will be able to get the loan (since mortgage is more of an secured loan)?

Best is to speak to mortgage specialist. In my opinion, no problem but depends on how much u want to borrow. Your monthly income of $13k with only car loan + housing loan should allows u to borrow a certain sum (up yo 60% TDSR) + max of 60% mortgage.

 

[henrylbh]

Hello all,

Recently, was looking at the option to upgrade from an exisiting EA to an EC.
Was looking at option and actually submitted my bank loan application.

Reason to move is that the unit i am in, is already 18years old, with the amount of money i will need to pump for reno is not worthwhile. I rather pay the 5% booking fee with that cash.

But one issue is that 2-3 years ago, i've several bad debts with bank, loans/CC etc. But all was settled then.

Currently, i've no CC and no existing loan but only a car loan with balance of $47,000.

My monthly income is $13,000.00 and my NOA for 2016 total income is 204,000.00

I've an exisiting HDB loan which will be cleared after selling the HDB.

Do you think i will be able to get the loan (since mortgage is more of an secured loan)?

You mentioned that you have several debt issues in the past and managed to get over them. And now you want to change from EA to EC to get into bigger debts? What if the you lose your ability to earn?

I personally think EA is one of the best housing compared to new EC or PC in term of price and size and maintenance. For EC/PC, you pay more than double the property tax for half the size. Maintenance also more than 3x and you lose all government handouts and for EC you start your MOP with restrictions all over again.

 

[mockingjayy]

You mentioned that you have several debt issues in the past and managed to get over them. And now you want to change from EA to EC to get into bigger debts? What if the you lose your ability to earn?

I personally think EA is one of the best housing compared to new EC or PC in term of price and size and maintenance. For EC/PC, you pay more than double the property tax for half the size. Maintenance also more than 3x and you lose all government handouts and for EC you start your MOP with restrictions all over again.

I understand your concern but those debt is not because of poor financial planning but rather I was hooked to gambling, I'm Glad to say I'm not way over gambling and I believe my current employment and earning will be sufficient for an upgrade therefore a change in housing.

The reason why I wanted to change is that most furniture and build in feature at the current place start to wear down after 18years, no renovation since I move in during 1998. I've ask for a quotation for renovation, it causes 70-80k minimum. That's why I am deciding to move into an EC.

 

[focus1974]

Actually .. you should just get a definitive answer from the BANKs instead of us telling you.

Loans are really case by case basis.

Before you commit to a house purchase, please always get an IPA (in-principle approval) from the bank.

Never go and buy a house and then go get an IPA.. Unless you know you have cash to pay for the house should you failed to get a bank loan.

 

[mockingjayy]

Actually .. you should just get a definitive answer from the BANKs instead of us telling you.

Loans are really case by case basis.

Before you commit to a house purchase, please always get an IPA (in-principle approval) from the bank.

Never go and buy a house and then go get an IPA.. Unless you know you have cash to pay for the house should you failed to get a bank loan.

Am aware that's why over the last weekend already submit some forms. Just want check any successful case of loan with similar or close scenarios.

 

[henrylbh]

I understand your concern but those debt is not because of poor financial planning but rather I was hooked to gambling, I'm Glad to say I'm not way over gambling and I believe my current employment and earning will be sufficient for an upgrade therefore a change in housing.

The reason why I wanted to change is that most furniture and build in feature at the current place start to wear down after 18years, no renovation since I move in during 1998. I've ask for a quotation for renovation, it causes 70-80k minimum. That's why I am deciding to move into an EC.

Moving to EC may be a downgrade in size. It's not cheap to get an EC similar in size as EA and there would be air-con ledge and balcony that eat into the size. For new EC you may still need to spend on some renovation cost as the fittings and furnishing are basic. I still prefer my EA of 143sm compare to my EC of 77sm, even though there is only 2 of us and I look forward to let go my EC and may be go back to EA even though my EC is about 4 min walk to mrt.

 

[mockingjayy]

Moving to EC may be a downgrade in size. It's not cheap to get an EC similar in size as EA and there would be air-con ledge and balcony that eat into the size. For new EC you may still need to spend on some renovation cost as the fittings and furnishing are basic. I still prefer my EA of 143sm compare to my EC of 77sm, even though there is only 2 of us and I look forward to let go my EC and may be go back to EA even though my EC is about 4 min walk to mrt.

As much as a New space, I am looking to actually make this EC like own stay and eventually after MOP we could sell it off with some profit.

At this current HDB, the property price doesn't seems to increase but with all the EC coming along, the price at it best will be stagnant already. So if I pump cash for renovation, the property price will be same and might be only increase by value abit. My EA is 142 and the EC I'm looking at is 100-120, that's also the point of hestitation.

 

[htngwilliam]

As much as a New space, I am looking to actually make this EC like own stay and eventually after MOP we could sell it off with some profit.

At this current HDB, the property price doesn't seems to increase but with all the EC coming along, the price at it best will be stagnant already. So if I pump cash for renovation, the property price will be same and might be only increase by value abit. My EA is 142 and the EC I'm looking at is 100-120, that's also the point of hestitation.

A few points to take note: -

1. EC uses bank loan so that risk is there if you default. I presume you are single or your wife is not working since application for EC cap at $13k.

2. If you guarantee you will keep the job for at least 5 years, then it is worth a shot.

3. I dont see how a EC can be very profitable. Property agents keep saying after 10 years, the EC price will be the same as condo. Seriously is it possible? I think EC will still fetch lower psf as compare to condo in the same region.

4. Personally, I am a bit worried about SG economy. Oil and gas problem should balloon. I remember reading DBS has $17b in loans to oil and gas sector (5.x% of their total loan). In addition, you are committing a price today and waiting for 3-4 years to TOP.

5. Spoke to 1-2 of my close property agent friends. As friends, they say don't commit now unless you have big reserve. As salesperson, they will encourage me to buy since market is so quiet. LOL!