Property loan help

[theblueark]

That's not too bad then, since you only need to pay off a remaining 15% of the home.

If you can service the 15% yourself, that would be the simplest so your siblings won't run into the 30 years problem. So only you will have problem if a day comes and you want to move out.

If the intention is for your siblings to contribute cash to you to informally help service the loan, that's where things might get a bit messy. Better to get the amounts written down and agreed in advanced, and transfer electronically so there is paper trail.

 

[MortgageSingapore]

Basically what you can do to take up the loan the most cost effective way against future planning.

1) Buying under parents, you, +1 more sibling.

2) parents 49% each other 98%, you and sibling 1% each in order to apply for loan.

3) in future, the rest can still apply BTO without any issue.

4) any change of plan, not selling of the property in future due to unforeseen circumstances, you and +1 sibling the only one suffering at most. Any plans to sell the property or withdraw names as you/sibling decides to get own property, only need to pay 1% of the CMV + stamp duty if any.


You don't need a bank loan specialist in this, you need a mortgage broker/property agent more than any other currently because what you need is someone to give you a detailed plan and timeline to move on, something not mortgage banker necessary have the time to crack their head with for a complicated low quantum loan.

In any case, how good a plan may be can never be 100% as changes is the only consistent. In short, 计划赶不上变化, so whatever plan you made right now, may be the best but may not turn out the best down the years with changes happening, rules tweaking again.

 

[windwaver]

4) Getting a bigger unit? Private ? Is there a need? Why dont get HDB Executive with 4 bedrooms (around 148 to 151 square meters) , and maybe its enough to pay off 100% instead of taking a loan ?

Basically what you can do to take up the loan the most cost effective way against future planning.

2) parents 49% each other 98%, you and sibling 1% each in order to apply for loan.

4) any change of plan, not selling of the property in future due to unforeseen circumstances, you and +1 sibling the only one suffering at most. Any plans to sell the property or withdraw names as you/sibling decides to get own property, only need to pay 1% of the CMV + stamp duty if any.

Good points.

Hi TS, have you explored what Vinz said about getting a larger HDB and do without a loan?

To me, having many parties involved is a bad idea, even worse when it's long term.

 

[turbones]

Good points.

Hi TS, have you explored what Vinz said about getting a larger HDB and do without a loan?

To me, having many parties involved is a bad idea, even worse when it's long term.

We are currently living in a privatized hudc estate of 161 sqm and have decided not to settle for anything smaller than this size. I dt there is any hdb flat that comes close to 161 sqm. Only jumbo flats come close to this size and what about the growth potential of a 99 year lease hdb flat compared to a freehold private property etc?

 

[turbones]

Basically what you can do to take up the loan the most cost effective way against future planning.

1) Buying under parents, you, +1 more sibling.

2) parents 49% each other 98%, you and sibling 1% each in order to apply for loan.

3) in future, the rest can still apply BTO without any issue.

4) any change of plan, not selling of the property in future due to unforeseen circumstances, you and +1 sibling the only one suffering at most. Any plans to sell the property or withdraw names as you/sibling decides to get own property, only need to pay 1% of the CMV + stamp duty if any.


You don't need a bank loan specialist in this, you need a mortgage broker/property agent more than any other currently because what you need is someone to give you a detailed plan and timeline to move on, something not mortgage banker necessary have the time to crack their head with for a complicated low quantum loan.

In any case, how good a plan may be can never be 100% as changes is the only consistent. In short, 计划赶不上变化, so whatever plan you made right now, may be the best but may not turn out the best down the years with changes happening, rules tweaking again.

Thanks for your detailed input. Well i guess everything we do in life has 3 outcomes. Better, same or worse. In this case, we hope for the best, fall back on things remaining status quo and fear things taking a bad turn for the worse.

 

[henrylbh]

Definitely not the first 3 paragraphs. More towards the last paragraph. Our parents will still be majority owners of the new property since they will be footing 85% of it. Borrowing 15% for shortfall will require me and probably one other sibling to put our names as co-owners with our parents. Unless you're telling me that once we borrow any amount to finance even 15% of a property, we have to be the complete owners of it, to the exclusion of my parents. Doesn't make sense since they came out 85%. And I am willing to consistently service the loan because I don't see it as a lost cost since I eventually will be repaid it. And even if one or two of us are listed as co-owners with parents, I don't think we two will try to snatch the asset from our parents since that is really out of order and unfilial.

Need to define ownership - joint or tenant in common and percentage of share. Even this may give rise to discontent in the future for those not participating or can't for the moment. Non-owners shut up.

Status quo is for parent to pay by themselves instead of involving children.

If borrower using CPF needs to pull out who can take over?

 

[Wk7777]

If I'm in your position, assuming all siblings are on good terms n peace loving, my plan will be this.

Property ownership: under 3 names. Parents & 1 chosen Siblings with income enough to support loan.
Ownership: Tenancy in Common with parents holding 99% and the sibling just 1%.
Loan: Entirely under just the sibling's name
Installment: CPF under Sibling's name

Probably choose the sibling that is most likely to stay with the parents for a longer period and have no plans of buying a HDB / private in near future.

Should the chosen one wishes to buy her own HDB resale / private, another sibling can come in and take over and purchase the 1% and take over the loan.

With the chosen 1 using just CPF, when his share is sold to the new owner, all CPF + accrued interest is returned. No disputes.

Let the parents do up a Will... stating what is to be left to who.... avoid disputes in future.... everybody is to respect the wishes of the parents...

Just my 2 cents worth..

 

[guanleng]

If I'm in your position, assuming all siblings are on good terms n peace loving, my plan will be this.

Property ownership: under 3 names. Parents & 1 chosen Siblings with income enough to support loan.
Ownership: Tenancy in Common with parents holding 99% and the sibling just 1%.
Loan: Entirely under just the sibling's name
Installment: CPF under Sibling's name

Probably choose the sibling that is most likely to stay with the parents for a longer period and have no plans of buying a HDB / private in near future.

Should the chosen one wishes to buy her own HDB resale / private, another sibling can come in and take over and purchase the 1% and take over the loan.

With the chosen 1 using just CPF, when his share is sold to the new owner, all CPF + accrued interest is returned. No disputes.

Let the parents do up a Will... stating what is to be left to who.... avoid disputes in future.... everybody is to respect the wishes of the parents...

Just my 2 cents worth..

What about the ABSD charges ? Current law the ABSD based on the person have the max property , and all unable to buy new property without incurring more absd in the future