Having more than 1 home loan

[lengbebe]

Anyone here knows or have experience with having more than 1 housing loan?

I recently applied for a BTO with my fiancée but DBS would not approve my loan as they claimed that the joint applicants cannot have more than 1 home loan. Are there any other FI’s which are more flexible?

Mortgage agents may PM me if you know how to resolve this.

Current situation is like this: my fiancée’s name is jointly held with her family’s existing home loan and withdrawing her name would require a complicated process and would take time and cost quite a bit. Told DBS that our combined income can support both loans comfortably but they would still not approve.

 

[xtwis7]

As long as the MSR clears, don’t see why the banks won’t approve. Unless they’re afraid that during times like this is at a much higher risk for someone with 2 loans as compared to 1.

 

[reddevil0728]

Anyone here knows or have experience with having more than 1 housing loan?

I recently applied for a BTO with my fiancée but DBS would not approve my loan as they claimed that the joint applicants cannot have more than 1 home loan. Are there any other FI’s which are more flexible?

Mortgage agents may PM me if you know how to resolve this.

Current situation is like this: my fiancée’s name is jointly held with her family’s existing home loan and withdrawing her name would require a complicated process and would take time and cost quite a bit. Told DBS that our combined income can support both loans comfortably but they would still not approve.

Is it even possible to be a joint loan owner without owning the house?

 

[lengbebe]

Is it even possible to be a joint loan owner without owning the house?

You can be an owner but not a borrower.

 

[lengbebe]

As long as the MSR clears, don’t see why the banks won’t approve. Unless they’re afraid that during times like this is at a much higher risk for someone with 2 loans as compared to 1.

I have the same thought as well. Both of our incomes combined can comfortably service both loans and still have room to spare after factoring msr

 

[SBC]

Looks like TS single salary is not enough to meet MSR requirement.

 

[lengbebe]

Looks like TS single salary is not enough to meet MSR requirement.

My single income salary can also meet msr requirements that’s why.

 

[SBC]

Met HDB ownership requirement?

 

[lengbebe]

Met HDB ownership requirement?

My fiancée already signed her current hdb relinquishment letter to forfeit her ownership in her existing property. We have also paid the option fees and met all hdb ownership requirements.

Anyone have any idea why DBS doesn’t allow more than 1 housing loan when the borrowers can comfortably afford?

 

[reddevil0728]

My fiancée already signed her current hdb relinquishment letter to forfeit her ownership in her existing property. We have also paid the option fees and met all hdb ownership requirements.

Anyone have any idea why DBS doesn’t allow more than 1 housing loan when the borrowers can comfortably afford?

Other banks allow? that question is for DBS to ans tbh

 

[SBC]

My fiancée already signed her current hdb relinquishment letter to forfeit her ownership in her existing property. We have also paid the option fees and met all hdb ownership requirements.

Anyone have any idea why DBS doesn’t allow more than 1 housing loan when the borrowers can comfortably afford?

Did she capture her ownership of the old property at the time of loan application?

 

[lengbebe]

Did she capture her ownership of the old property at the time of loan application?

Yes all was declared. Bank even checked credit bureau and declined the application because they said it’s not possible that the borrowers have more than 1 existing loan. It’s the first time I heard of this. I’m sure there’s people with more than 2 loans if they can service the repayments.

 

[BBCWatcher]

Is it even possible to be a joint loan owner without owning the house?

Yes. From the lender’s point of view 100 names on the loan are fine, in principle anyway. That’s 99 more people available to chase for assets if the loan defaults.

The central problem, though, is that adding this spouse who already has a loan to a new, second mortgage dilutes the existing lender’s powers of collection. There are some regulatory restrictions against doing that, but even if the regulations are cleared there are “business courtesy” practices as well.

My single income salary can also meet msr requirements that’s why.

OK, so why does it matter? Take the mortgage you like, and how you and your spouse actually pay the mortgage month to month is up to you. There are tons of examples of couples with one nonworking spouse who buy and mortgage BTOs this way, and then the nonworking spouse enters the workforce and starts helping to pay the mortgage. That’s the equivalent here, except your spouse is evidently already in the workforce. What are we missing? Many couples would consider having only one name on the mortgage to be a good thing, actually.

 

[dork32]

Anyone have any idea why DBS doesn’t allow more than 1 housing loan when the borrowers can comfortably afford?

i dont think the problem is with housing loan. it is with hdb. no one is allowed to own more than 1 hdb

just think, your wife co-own hdb with parents, you co-own hdb with parents. you 2 get married and buy one more hdb. total you own 3 hdb between the both of you?

it is understood that your wife has to give up her share at her parents hdb. even if dbs allows it, hdb will come after you.

it is really not a matter of dbs willing to lend you the money. if you do this on 2 condos, dbs will allow

 

[dork32]

You can be an owner but not a borrower.

but if you are a borrower, you must be the owner

 

[bossjiaksai]

Then you can apply for the BTO as sole owner and your wife as occupier? So the bank loan is solely under your name

 

[BBCWatcher]

but if you are a borrower, you must be the owner

Well, maybe not. It doesn't happen very often, but (for example) I suppose it's possible for a co-borrower to place a large fixed deposit with the bank as collateral and participate in the loan but not actually be a co-owner of the property.

Regardless, I'm not sure why it's a bad thing if a lender won't accept a spouse as a co-borrower but will still loan the money. It seems like it could be a good thing, actually. (The spouse's private assets might be shielded against this creditor.) What's the problem that we're missing?

 

[BBCWatcher]

Then you can apply for the BTO as sole owner and your wife as occupier? So the bank loan is solely under your name

With a sole owner plus essential occupier arrangement I believe the potential problem is that the occupier's CPF Ordinary Account cannot be used to help pay for the flat. However, I don't understand the precise problem yet. Hopefully lengbebe will clarify.

 

[BBCWatcher]

Current situation is like this: my fiancée’s name is jointly held with her family’s existing home loan and withdrawing her name would require a complicated process and would take time and cost quite a bit. Told DBS that our combined income can support both loans comfortably but they would still not approve.

OK, I think I understand the problem from the bank's point of view. Here's one rare scenario they might be worried about:

1. Somebody living in your spouse's family's HDB flat does something really stupid. She/he runs a prostitution business out of the flat or otherwise commits a cardinal HDB sin.

2. Your spouse's family members involuntarily relocate to a new government flat: Changi Prison.

3. The Housing Development Board grabs the family's flat without compensation. (Your innocent spouse is no longer a co-owner, remember.)

4. Your spouse is now solely responsible for a mortgage on a flat that no longer exists.

True, this scenario and others like it is rare, but in the present instance the lender just doesn't want the incremental risk. But if the lender will still loan the money to you, on your own, no problem, right?

Currently your spouse has a substantial debt obligation but no collateral (of her own) backing her debt obligation. From the new lender's point of view it's like she has a gigantic personal loan outstanding. Hence they have a problem with it. Their view seems quite reasonable, actually.

 

[dork32]

Then you can apply for the BTO as sole owner and your wife as occupier? So the bank loan is solely under your name

can put wife as occupier when she is the own of other flat?