Free Advice/Discussion on Bank Mortgage loan

[Property_Broker]

Yes, Fixed Salary with CPF, no fluctuations for 12 mths at least.
Salary payout as "SAL".

But 1st year NOA is self employed (low and fluctuates), 2nd year NOA then is 12 mths fixed monthly salary.

Any banks that take them? So far i approached a few brokers they told me Maybank can take, but i prefer local banks if possible.

Yup. Maybank can take in for sure.

If you want local banks, you can tell your broker to try DBS.

 

[pepckola]

Anyone done a reprice with UOB recently? Loan amt about 900k, Currently at 3.1%, with about 10mths left in lock in, but able to do a conversion now. Best rest they offered was 2.65% 2yrs fixed. Seems like other banks offers better rates.

 

[buahlonglong]

Yup. Maybank can take in for sure.

If you want local banks, you can tell your broker to try DBS.

How about yourself? Do you have any partnered banks that you are confident can accept?

 

[Property_Broker]

How about yourself? Do you have any partnered banks that you are confident can accept?

If your current broker cant assist you, you can let me know. I try to help you on it.

I will not say that 100% that it will approve for sure as I am not those people that overpromise. So we can put in the application and wait for the bank approval. But it should be fine assuming you met all the requirement.

 

[elvintay07]

Yup. Maybank can take in for sure.

If you want local banks, you can tell your broker to try DBS.

Local banks quite kiasi and will double and triple check. Even as a business owner, they will check what is the paid up capital. They got plenty of business so they don’t really need to risk another loan. Why not local banks? If they bankrupt, then no need to pay. !

 

[Caprug96]

Hey @Caprug96

DBS FHR package pros:
Based purely on rates, DBS FHR might seem the best as it is currently the lowest.
However, you should note that the order of disbursement is progressive and what's more important might be the rates you get when the bulk of your loan gets disbursed nearing to T.O.P

DBS FHR offers 1 good feature, which is a predetermined spread regardless of how interest rates move in the coming years.

In this instance, I would like to ask which year is the expected T.O.P for the BUC you're looking at?
Reason being, there are still packages out there with 1M SORA + 0.38% spread throughout year 1-4, which would still be more ideal than DBS' predetermined spread of 0.40%.

However, all these depends on how much loan you intend to take

Hey @mortgage_88

thanks for weighing in on this and appreciate your views. Expected TOP is around 2028/2029. But wouldn’t by after the 4th year and TOP I would be able to refinance to a fixed rate home loan, which is likely to be lower than a floating (at that point in time). So in that aspect, how would u consider that as a pro? Love to hear your views on this. Cheers.

 

[Giraffe7]

Hi @Property_Broker, can check if my EC might TOP in Aug 25, and I need to take a bridging loan, may I check when is the latest I need to start selling my house and complete the sale yet ensure a smooth transition? Meaning no need for additional rental of housing in between, I can shift directly from my current hdb to the new EC? Thanks in advance.

 

[mortgage_88]

bridging loan tenures are roughly 6 months so you need to ensure you get your completion of sale moneys by t

Hi @Property_Broker, can check if my EC might TOP in Aug 25, and I need to take a bridging loan, may I check when is the latest I need to start selling my house and complete the sale yet ensure a smooth transition? Meaning no need for additional rental of housing in between, I can shift directly from my current hdb to the new EC? Thanks in advance.

hen, factoring in 1 month processing for CPF proceeds.

question will be upon TOP, how long would the renovation take before you move in

you’ll only be eligible for ABSD remission if you receive the exercised OTP from your buyer within six months after the date when Temporary Occupation Permit (TOP) or Certificate of Statutory Completion (CSC) of your condo is issued.

You will be required to move out of your flat and hand over the keys by the HDB completion appointment date. If your new property is not ready yet, sellers can apply for a Temporary Extension of Stay of up to three months, although this is subject to the new flat owners’ approval. The Temporary Extension of Stay must be submitted along with your resale application

 

[Property_Broker]

Hi @Property_Broker, can check if my EC might TOP in Aug 25, and I need to take a bridging loan, may I check when is the latest I need to start selling my house and complete the sale yet ensure a smooth transition? Meaning no need for additional rental of housing in between, I can shift directly from my current hdb to the new EC? Thanks in advance.

Hi @Giraffe7

Can I check if you purchased the property under DPS or NPS?

If you are under DPS, you can start to take housing loan with the special EC bridging loan already. However do take note that they will need the HDB APPROVAL letter for the sale (Which is technically during the TOP stage).

This means the latest is around 3-4 months before TOP stage.




As for the process of a smooth transaction, it depends on the timeline for your sale of property(I presume it should be HDB).

Normal selling process: From OTP to sale completion date is around 3 months+

There are ways to extend as well
1) Free extension 3 months
2) Delay the HDB submission
3) Some other creative ways

I will recommend that you can have a chat and discuss with your property agent on the selling timeline.


FYI: There is no ABSD involve if you are selling HDB and buying EC. Because you will get forced to dispose of your HDB.

 

[Giraffe7]

Hi @Giraffe7

Can I check if you purchased the property under DPS or NPS?

If you are under DPS, you can start to take housing loan with the special EC bridging loan already. However do take note that they will need the HDB APPROVAL letter for the sale (Which is technically during the TOP stage).

This means the latest is around 3-4 months before TOP stage.




As for the process of a smooth transaction, it depends on the timeline for your sale of property(I presume it should be HDB).

Normal selling process: From OTP to sale completion date is around 3 months+

There are ways to extend as well
1) Free extension 3 months
2) Delay the HDB submission
3) Some other creative ways

I will recommend that you can have a chat and discuss with your property agent on the selling timeline.


FYI: There is no ABSD involve if you are selling HDB and buying EC. Because you will get forced to dispose of your HDB.

Thanks for the reply. Mine is under DPS and currently owning HDB. Cause worried if sell too early need to find rental house will be additional cost and hassle..

 

[Property_Broker]

Thanks for the reply. Mine is under DPS and currently owning HDB. Cause worried if sell too early need to find rental house will be additional cost and hassle..

Yup.

Do take note that the TOP is in stages as well.

Based on my understanding it is based on blocks. So it is quite difficult to pin point the month for the TOP until the lawfirm informed you on it.

So try to discuss with your agents on it.


Meanwhile, you can apply for your loan now as well. Just go for the special EC bridging loan and housing loan~ Can PM me if you need assistance. Cheers.

 

[sunsunshine]

Anyone done a reprice with UOB recently? Loan amt about 900k, Currently at 3.1%, with about 10mths left in lock in, but able to do a conversion now. Best rest they offered was 2.65% 2yrs fixed. Seems like other banks offers better rates.

just did it a week ago - loan amount 480k, 2.5% fixed for 3 years.

 

[mortgage_88]

Hey @mortgage_88

thanks for weighing in on this and appreciate your views. Expected TOP is around 2028/2029. But wouldn’t by after the 4th year and TOP I would be able to refinance to a fixed rate home loan, which is likely to be lower than a floating (at that point in time). So in that aspect, how would u consider that as a pro? Love to hear your views on this. Cheers.

I assume you're looking at the launch of Orie, where developers give an estimation of 2028 / 2029 T.O.P, but on paper T.O.P is slated for 2030.

2 things we need to take into consideration here.
1) Historically, fixed rates have actually been priced higher than floating rates. This is because the market expects homeowners to pay a premium for the fixed stability on the rates. It is however, only in recent times where floating rates have become higher than fixed rates, making it almost impossible to make sense for taking a floating package.

The 3MSORA and spread have an inverse-relationship.
When floating rates are higher, the spread offered in SORA packages are typically low.
When floating rates are lower, the spread offered in SORA packages are high.

Today, the benefit of securing a low spread package is that you get to convert to a low spread even if floating rates dip in the future.

It might be easier if you research on historical 3M SORA rates and you would understand the benefit of securing a low spread early


2) For your info, Although it comes with no penalty on cancellation, there is actually typically a 0.75% penalty fee on the undisbursed loan amount if you choose to refinance. This can be found in the clause.

Progressive payment structures with SORA free conversion sounds great on paper and surely has its merits, but would you really know when is a good time to convert if no one is monitoring the rates for you, especially when you get busy with work thereafter.

Many homeowners leave the package unoptimised up until full disbursement and ultimately pay much more interest than it could've been.

I can help give you a brief overview and detailed breakdown as I think it'd be easier to do a side-by-side comparison

 

[mortgage_88]

Anyone done a reprice with UOB recently? Loan amt about 900k, Currently at 3.1%, with about 10mths left in lock in, but able to do a conversion now. Best rest they offered was 2.65% 2yrs fixed. Seems like other banks offers better rates.

any intention to sell in the next 3-4 years?

 

[dan1982]

Need a bit of advice on a decoupling - coupling loan set up...

Basically, my GF owns her 2 BR condo and I have a 3 room HDB Flat. Current tentative plan is for me to get a bigger place in the next couple of months (solo) and then for her to sell her place then to unlock the equity and get a different bigger condo solo (her condo pricing is more or less stagnant). After she completes the purchase of the newer property, then we get married with each holding one property in name. Once MOP is up for my HDB flat, we then rent out the HDB flat and get the rental proceeds to cover the condo installment and stay there.

I'm having an issue now being that my HDB loan will be capped at lesser than $300k using MSR mostly due to age considerations and nett equity after selling the 3 rm HDB flat is about $200k+. If I were to use this as a budget, I can only get a place around $550k. This is not alot during this day and age. The places I am looking at is asking about $6-700k+ onwards (Within 10 years old, 4 rm well located flat, well maintained with minimal reno).

Any way for me to bridge this gap other than extra cash? If I were to opt for a private property, under TDSR, I can get a $500k+ loan easily for a studio as I have no CC debts or instalment and my credit bureau score is a perfect AA, 2k points.

Thanks.

 

[Rxgn]

Need a bit of advice on a decoupling - coupling loan set up...

Basically, my GF owns her 2 BR condo and I have a 3 room HDB Flat. Current tentative plan is for me to get a bigger place in the next couple of months (solo) and then for her to sell her place then to unlock the equity and get a different bigger condo solo (her condo pricing is more or less stagnant). After she completes the purchase of the newer property, then we get married with each holding one property in name. Once MOP is up for my HDB flat, we then rent out the HDB flat and get the rental proceeds to cover the condo installment and stay there.

I'm having an issue now being that my HDB loan will be capped at lesser than $300k using MSR mostly due to age considerations and nett equity after selling the 3 rm HDB flat is about $200k+. If I were to use this as a budget, I can only get a place around $550k. This is not alot during this day and age. The places I am looking at is asking about $6-700k+ onwards (Within 10 years old, 4 rm well located flat, well maintained with minimal reno).

Any way for me to bridge this gap other than extra cash? If I were to opt for a private property, under TDSR, I can get a $500k+ loan easily for a studio as I have no CC debts or instalment and my credit bureau score is a perfect AA, 2k points.

Thanks.

try bank loan?

 

[elvintay07]

Need a bit of advice on a decoupling - coupling loan set up...

Basically, my GF owns her 2 BR condo and I have a 3 room HDB Flat. Current tentative plan is for me to get a bigger place in the next couple of months (solo) and then for her to sell her place then to unlock the equity and get a different bigger condo solo (her condo pricing is more or less stagnant). After she completes the purchase of the newer property, then we get married with each holding one property in name. Once MOP is up for my HDB flat, we then rent out the HDB flat and get the rental proceeds to cover the condo installment and stay there.

I'm having an issue now being that my HDB loan will be capped at lesser than $300k using MSR mostly due to age considerations and nett equity after selling the 3 rm HDB flat is about $200k+. If I were to use this as a budget, I can only get a place around $550k. This is not alot during this day and age. The places I am looking at is asking about $6-700k+ onwards (Within 10 years old, 4 rm well located flat, well maintained with minimal reno).

Any way for me to bridge this gap other than extra cash? If I were to opt for a private property, under TDSR, I can get a $500k+ loan easily for a studio as I have no CC debts or instalment and my credit bureau score is a perfect AA, 2k points.

Thanks.

No detail info but I did some simulation. Assuming age is 43 and loan amount is $300,000 payable till age 65, monthly mortgage is ~ $1500-1800?

The plan is well thought of like a chess master. But the actual execution maybe tough

 

[dan1982]

try bank loan?

Bank or HDB loans dun matter as a HDB flat or EC purchase is subjected to MSR for loan considerations, not TDSR?

 

[dan1982]

No detail info but I did some simulation. Assuming age is 43 and loan amount is $300,000 payable till age 65, monthly mortgage is ~ $1500-1800?

The plan is well thought of like a chess master. But the actual execution maybe tough

Figure is right. I'm having issues with the execution becos of the lower loan quantum in getting HDB flat vs private... Just to be clear, I did not set out to test the system.

Sometimes I feel sad that we need to keng so much as Singaporeans becos of these pea-brained cooling measures / rules and regulations - It's not an affordability / credit worthiness issue in my case as the bank can loan me so much more if I buy private vs HDB. My GF will need to sell her condo and wait 15 months (to buy resale with me) or 30 months (Apply BTO / EC). That set me down the rabbit hole - Since we need to wait a period, why not I just get a bigger place in my name, tank a 60 months MOP, wait for her to slowly sell and reset her timer or if the right opportunity crops up to invest in the right property? But to do so = 1 middle age man tanking 1 loan with a low quantum? Since the stupidity of the policy is such, we need to devise creative methods to further stress ourselves further. How to get sandwiched class people to get married and start having a family like that? Small space or big space also no mood to have s** lor.

Problem is I'm not elite or FT, just middle class bottom 80%... Tt's all? Haha

 

[Property_Broker]

Hi @dan1982

I presume that you are looking at the option to increase the loan amount right?

Based on your sharing..

Age: 43
Employed Income: 5840

Loan to value: 75%
Loan: 300k
Loan tenure: 22 years

The typical method to boost the loan amount will be either show fund or pledged but unfortunately,y it is quite expensive to use this method on EC or HDB due to MSR rule..

For extra 10k loan, you need to showfund 31.5k or pledged 4 years with bank @ 9.5k..

Another method will be this

Age: 43
Employed Income: 5840

Loan to value: 55%
Loan: 337337
Loan tenure: 27 years

If you are willing to take loan less than 55%, you can increase the loan amount as the loan tenure increases.

Which mean if you target 613k, you can get 55% loan 337k.

So the downpayment is around 276k (Which is your sale HDB proceed is already 200k+). It should be easier for you to cover the shortfall.


You can just apply the HFE and apply the IPA with the banks. It will be easier to do your planning~