Free Advice/Discussion on Bank Mortgage loan

[Fifa2006]

For those who are planning to

1) Seek for Approval In Principle (AIP)
2) Source for the Best Mortgage Bank Loan in the Market
3) Have some questions related to Bank Mortgage Loan answered


Q & A

1) What is Approval In Principle (AIP) or others call is In Principle Approval (IPA)?

It is a verbal agreement by the bank, showing the amount they are potentially prepared to lend to you, based on your financial ability and the credit history. It is not a gurantee, but it do help customer to gauge the range that the bank is able to finance them and to choose a property of that range.


2) Does all bank give the same amount for AIP/IPA?

No, different bank set different criteria. It varies throughout the banks.


3) What is the difference between Repricing and refinancing?

Repricing mainly is to negotiate a better rate within the same bank while refinancing is to switch a bank for a better rate



4) What is the difference between going straight to the bank and getting a mortgage broker to serve me?

There are more than 10 banks / Financial Institute in Singapore, 0.10% - 0.2% makes a difference on the interest you paid yearly. If Bank A only sell Sibor package, Banker A will tell you that Sibor Package is best and others cant fight them .
For Mortgage Broker, we consolidate rates from almost all banks in Singapore , source the best rate for you and tailor it to suits your risk level.
Moreover, we do quaterly / half yearly review on customer package to determine if they require a switch of bank.


5) Do we have to pay mortgage broker for their service?

Most bank renumerate brokers for their service and normally broker service are FREE (unless otherwise stated)


6) Since the bank is paying Mortgage Broker , will Mortgage Broker still source us the Best rate in the Market?

Mortgage Broker are renumerate based on a percentage of the loan, getting you the best package wont affect their commission, so in order to get more repeat customer and referrals, Mortgage Broker will source you the best rates, based on your risk taking level.


6) What are the basic documentation required for a financing of property?

For New Purchase,

1) CPF OA account ( CPF website –> My Statement -> Section A <print this section>)
2) CPF Contribution History ( CPF website –> My Statement -> Section B )
3) CPF Property Withdrawal Statement (CPF website –> My Statement -> Section C -> Property - > My Private Housing Withdrawal Details)
4) 2 years income tax/ 3month payslip (if client just started work) (IRAS Website -> Correspondence & Notices -> Individual Income Tax (Letter/Notices) -> Letter/Notices -> Notice of Assessment (Individual)
5) IC copy front n back
6) HDB Declaration -> Would need an additional document for processing more than 60% financing for Singaporean and SPR - Please go to HDB's website athttp://www.hdb.gov.sg/MyHDBPageto do a screenshot, to show that you do not own any HDB or have any HDB housing loan currently. (Under 'My Flat > Purchased Flat > Financial)
7) Signed Application Form
8) Option To Purchase / Sale & Purchase Agreement


For Refinancing,

1) CPF OA account ( CPF website –> My Statement -> Section A <print this section>)
2) CPF Contribution History ( CPF website –> My Statement -> Section B )
3) CPF Property Withdrawal Statement (CPF website –> My Statement -> Section C -> Property - > My Private Housing Withdrawal Details)
4) 2 years income tax / 3month payslip (if client just started work) (IRAS Website -> Correspondence & Notices -> Individual Income Tax (Letter/Notices) -> Letter/Notices -> Notice of Assessment (Individual)
5) IC copy front n back
6) HDB Declaration -> Would need an additional document for processing more than 60% financing for Singaporean and SPR - Please go to HDB's website athttp://www.hdb.gov.sg/MyHDBPageto do a screenshot, to show that you do not own any HDB or have any HDB housing loan currently. (Under 'My Flat > Purchased Flat > Financial)
7) Signed Application Form
8) Loan Repayment Statement


1) Q & A on Housing Loan
http://sghousingmatters.blogspot.sg/2013/01/q-for-housing-loan.html

2) How does the New Cooling Measure going to affect you??
http://sghousingmatters.blogspot.sg/2013/01/how-will-new-cooling-measure-wef-12-jan.html

3) Whats your view on Mortgage Rate?
http://sghousingmatters.blogspot.sg/2013/01/whats-your-view-on-bank-mortgage-rate.html

4) Choose the Best Package for your Property
http://www.sghousingmatters.blogspot.sg/2013/05/choose-best-package-for-your-property.html

5) Is your Mortgage More than 3 years?
http://www.sghousingmatters.blogspot.sg/2013/03/is-your-mortgage-loan-more-than-3-years.html

6) Comparing Uncompleted Property Rates
http://www.sghousingmatters.blogspot.sg/2013/04/comparing-uncompleted-property-rates.html

7) TDSR - Total Debt Servicing Ratio
http://sghousingmatters.blogspot.sg/2013/08/total-debt-servicing-ratio-tdsr-gross.html





Drop me/this thread a message to have it answered

Hope that with my experience in the industry , I can answer your queries.

 

[dgeralds]

1. What is Approval in Principle for? Is it approval to secure bank loan from bank? Once secured how long will this be vaid?

2. What is the current interest rate range for new condo undergoing construction?

3. PM me if your are in financing as Im looking for a loan for slightly over 500K to buy condo.

Thank you.

 

[Fifa2006]

Drop you a message

 

[Wood4]

Without any property , will banks approve any AIP ?
This is just to standby for better property buy opportunity .

 

[Fifa2006]

You do not need to have a property to do AIP .with your income doc , Bank will give you an indication on how much they are willing to lend to you. This way you can source for property within that budget. This will save you a lot of time

 

[Fifa2006]

Are you planning to dropby Several Banks to source for the Best Rate in the Market for your property?



Are you currently thinking

"Is this Banker giving me the Best Rate?"

"How much Loan will the bank grant me?"

"Which Package Suit me BEST?

1) Fixed 2) Sibor 3) SOR or 4) Rates pegged to Bank Board Rate?"[




Worry NO MORE!!

As Mortgage Broker, We update Ourself with the Lastest Bank Rate and provide YOU with advice on which package suits YOU BEST!



Most importantly,



1) We are unbiased & Our Service to YOU is FREE

(Bank pay us for the Loan we recommend to them)



2) We will get the highest LTV(Loan To Valuation) for YOU!
(The higher the loan amount , the higher our commission)


Feel free to drop me a text if you need any advice/assistance on your Approval In Principle/Financing/refinancing of your Loan.​

 

[Fifa2006]

Any couple planning to purchase a second property but have no idea on how to obtain a maximum of 80% loan from the bank, drop me a message. Will advice you according, based on your situation
.(do take note that loan for second property is capped at 60% for most of the bank

 

[supergmail]

bookmark for reading later

 

[Fifa2006]

Just call up one of my banker and he mention their promo rate(Do note that bank have the right to cease the promo package as and when they need to )

500k loan onwards

2 years lock in
1st year: sibor +0.55%
Thereafter: 3mth sibor +. 0.65%

 

[fac19]

Any couple planning to purchase a second property but have no idea on how to obtain a maximum of 80% loan from the bank, drop me a message. Will advice you according, based on your situation
.(do take note that loan for second property is capped at 60% for most of the bank

I am keen to know more about this.
can you drop me a pm to explain?

 

[Avg_Joe]

Just call up one of my banker and he mention their promo rate(Do note that bank have the right to cease the promo package as and when they need to )

500k loan onwards

2 years lock in
1st year: sibor +0.55%
Thereafter: 3mth sibor +. 0.65%

Hi. Cannot choose 1 month sibor?

 

[Fifa2006]

Hi Fac_19,

To advice you better,

I will need some information from you:
1) purchase amount/ outstanding loan mat
2) interest rate (if refinancing)
3) existing bank(if refinancing)
4) mthly instalment (if refinancing)
5) age of borrower

Ave_joe

3mth only

 

[ASKHabit]

Any couple planning to purchase a second property but have no idea on how to obtain a maximum of 80% loan from the bank, drop me a message. Will advice you according, based on your situation
.(do take note that loan for second property is capped at 60% for most of the bank

The loan to value limit of 60% for second property(with first property still have outstanding loan) is regulated by MAS, hmm...if you get 80% LTV wont you be breaking the law???

Maybe unless you get the second property and sold the first property or full paid off the first loan....then you may get 80% loan approval if you can show your excerise OTP.

 

[hazardous]

Hi Bros,

I asked this question in the other thread but have yet to have any replies. So I'll just cut and paste here.

I just got sibor rate home loan from DBS, but my monthly payment will only kick in gradually (3 years) after the TOP. My banker friends said to go for SIBOR now, as its very very low and unlikely to rise for the next 3 years. But once TOP, should start looking at fixed rate as staying on with SIBOR will be akin to gambling (can shoot up to 3~4%).

Is this line of thinking ok? What is the typical fixed rate that banks give (assuming SIBOR at 3%)?

 

[henrylbh]

Just call up one of my banker and he mention their promo rate(Do note that bank have the right to cease the promo package as and when they need to )


500k loan onwards

2 years lock in
1st year: sibor +0.55%
Thereafter: 3mth sibor +. 0.65%

Can mortgage my shares for 500lk loan? Even sibor + 1% can.

 

[henrylbh]

Just call up one of my banker and he mention their promo rate(Do note that bank have the right to cease the promo package as and when they need to )

500k loan onwards

2 years lock in
1st year: sibor +0.55%
Thereafter: 3mth sibor +. 0.65%

Can mortgage my fully paid-up by EA? No CPF used.

 

[Fifa2006]

Hi Askhabit,

No it's not breaking the law.
It only can apply to people with private property.
If you are a married couple joint ownership and borrower of a private property, you can actually remove one of the borrower (A) from the 1st property loan. (A) will then purchase a property under his/her name and get a 80% loan out of it (if the income is strong enough) .
They look into borrower rather than ownership of the property to determine the LTV.

The loan to value limit of 60% for second property(with first property still have outstanding loan) is regulated by MAS, hmm...if you get 80% LTV wont you be breaking the law???

Maybe unless you get the second property and sold the first property or full paid off the first loan....then you may get 80% loan approval if you can show your excerise OTP.

 

[Fifa2006]

Hi hazardous,
I assume your property is an uncompleted property
Most bank will only offer Sor/Sibor rates for uncompleted property.
Rate will for sure go up years to come .
I can't predict the rate in the future but I can quote you some rates for
You to take reference from in the current market

For mass market
Best fixed rate
1st 3 yrs :1.35%

Best sibor
1st year: 3mth sibor + 0.55%
thereafter : 3mth sibor + 0.65%

3msibor today is :0.39744

Hi Bros,

I asked this question in the other thread but have yet to have any replies. So I'll just cut and paste here.

I just got sibor rate home loan from DBS, but my monthly payment will only kick in gradually (3 years) after the TOP. My banker friends said to go for SIBOR now, as its very very low and unlikely to rise for the next 3 years. But once TOP, should start looking at fixed rate as staying on with SIBOR will be akin to gambling (can shoot up to 3~4%).

Is this line of thinking ok? What is the typical fixed rate that banks give (assuming SIBOR at 3%)?

 

[Fifa2006]

Hi Henry
What do you mean by share?
Share on the property or share(stock in Market)
For property only with all owner consent then you will be able to take an equity loan out of your property
For share (stock in the Market); I am not the right person to advice you

Can mortgage my shares for 500lk loan? Even sibor + 1% can.

 

[Fifa2006]

Hi Henry,

For Property under HDB ruling, you are not able to do an equity loan out of the property.
Cash out/Equity loan is only applicable for private property.

Hope I answer your question

Can mortgage my fully paid-up by EA? No CPF used.