Purchase property

[inlovewithsg]

Hi,

I would like to purchase a property under my son’s name but have the mortgage under my name. This would avoid ABSD.

My bank refuses me the mortgage since the property is not under my name. The fact that my son is minor doesnt seem to make a difference to them.

Assuming all bank might have the same position, is there a way for me to provide guarantee to bank by drafting additional legal documents around this?

I’m interested in all advices.

Thanks!

 

[JuniorLion]

Hi,

I would like to purchase a property under my son’s name but have the mortgage under my name. This would avoid ABSD.

My bank refuses me the mortgage since the property is not under my name. The fact that my son is minor doesnt seem to make a difference to them.

Assuming all bank might have the same position, is there a way for me to provide guarantee to bank by drafting additional legal documents around this?

I’m interested in all advices.

Thanks!

How old is your son?

If you're son is not making any income, how can the bank loan him the money? There is the Total Debt Servicing Ratio (TDSR) in place. Please read up on TDSR.

 

[SBC]

Hello TS, you think MIW and IRAS are paid peanuts that you could workaround the system so easily.

 

[peacefulday]

How old is your son?

If you're son is not making any income, how can the bank loan him the money? There is the Total Debt Servicing Ratio (TDSR) in place. Please read up on TDSR.

that's right and unless TS can proceed purchase without take a loan. Btw, in future yr son decide for a hdb bto, and the pc need to dispose then.

 

[inlovewithsg]

Hi,

Thank you for your messages.

I’m familar with TDSR. What I wanted is to have the mortgage under my name, while taking into account my income.

Of course, I understand that it is an issue for the bank that the mortgage and the property are not under the same name (mine versus my son’s) but I thought I could have some paperwork done to guarantee the property to the bank in case I was failing paying back the mortgage. This is something common in many countries when parents are purchasing properties under their kids’ name.

Re IRAS/MIW, obviously I would not do anything against the law. If there is no legal/common way for the situation I was describing, then that answers my question and closes the topic

I was under the impression it was actually common in Singapore to put property under kids/spouse names when you already own a first property under your name. I guess I misunderstood...

 

[pcmdan]

Nope

No one can have the house under someone name but take loan with another person's name.

For TS case, sorry not possible.

Unless, your son can take loan himself but you pay from your pocket. That is a different matter.

But note that, if this is private property, he cant buy a HDB when he wants. He needs to dispose his Condo first

 

[inlovewithsg]

Noted. Thank you all!

 

[sAVaGEmP5]

if u can do it for ur son u can do it for friend A,B,C,X.

if u have a billion u can almost buy up all the properties in SG without ABSD.

 

[JuniorLion]

Hi,

Thank you for your messages.

I’m familar with TDSR. What I wanted is to have the mortgage under my name, while taking into account my income.

Of course, I understand that it is an issue for the bank that the mortgage and the property are not under the same name (mine versus my son’s) but I thought I could have some paperwork done to guarantee the property to the bank in case I was failing paying back the mortgage. This is something common in many countries when parents are purchasing properties under their kids’ name.

Re IRAS/MIW, obviously I would not do anything against the law. If there is no legal/common way for the situation I was describing, then that answers my question and closes the topic

I was under the impression it was actually common in Singapore to put property under kids/spouse names when you already own a first property under your name. I guess I misunderstood...

The TDSR and ABSD framework is made to prevent situations like this. It would probably not be ideal if one could work around this. The property prices would continue to escalate upwards, leading to some really inadmissible prices for the next generation.

 

[dork32]

Hi,

Thank you for your messages.

I’m familar with TDSR. What I wanted is to have the mortgage under my name, while taking into account my income.

Of course, I understand that it is an issue for the bank that the mortgage and the property are not under the same name (mine versus my son’s) but I thought I could have some paperwork done to guarantee the property to the bank in case I was failing paying back the mortgage. This is something common in many countries when parents are purchasing properties under their kids’ name.

Re IRAS/MIW, obviously I would not do anything against the law. If there is no legal/common way for the situation I was describing, then that answers my question and closes the topic

I was under the impression it was actually common in Singapore to put property under kids/spouse names when you already own a first property under your name. I guess I misunderstood...

i did not use my kid's name. i used my mom's name for my second property in sg.

my first condo was bought many years ago. it has appreciated substantially in price. i took a loan on my first condo. because of this, i have quite a bit of cash on hand to buy a hdb under my mom's name and i siam absd

 

[V_for_Vanilla]

Hi,

Thank you for your messages.

I’m familar with TDSR. What I wanted is to have the mortgage under my name, while taking into account my income.

Of course, I understand that it is an issue for the bank that the mortgage and the property are not under the same name (mine versus my son’s) but I thought I could have some paperwork done to guarantee the property to the bank in case I was failing paying back the mortgage. This is something common in many countries when parents are purchasing properties under their kids’ name.

Re IRAS/MIW, obviously I would not do anything against the law. If there is no legal/common way for the situation I was describing, then that answers my question and closes the topic

I was under the impression it was actually common in Singapore to put property under kids/spouse names when you already own a first property under your name. I guess I misunderstood...

In the past yes. This has since changed in 2013. MAS now includes mortgage "guarantor" like yourself as a co-borrower and as such you will be required to not exceed the TDSR requirement.

 

[peacefulday]

i did not use my kid's name. i used my mom's name for my second property in sg.

my first condo was bought many years ago. it has appreciated substantially in price. i took a loan on my first condo. because of this, i have quite a bit of cash on hand to buy a hdb under my mom's name and i siam absd

but in future, change of ownership from the elderly to you and stamp duties at market value, lawyer, etc fees, still apply?

 

[dork32]

but in future, change of ownership from the elderly to you and stamp duties at market value, lawyer, etc fees, still apply?

first point. no more stamp duty. the flat is under my mom for good. she has willed it to my daughter. she is too young to buy a hdb under her name now. No need stamp duty for this sort of transfer.

second point. ts is is trying to get a loan under his name for a purchase of a unit under the kid's name. i am not here to talk about the transfer and all the crab. the idea is cancel the word mom and insert the word son. everything else could work.

 

[JuniorLion]

first point. no more stamp duty. the flat is under my mom for good. she has willed it to my daughter. she is too young to buy a hdb under her name now. No need stamp duty for this sort of transfer.

second point. ts is is trying to get a loan under his name for a purchase of a unit under the kid's name. i am not here to talk about the transfer and all the crab. the idea is cancel the word mom and insert the word son. everything else could work.

It will work if TS has a few millions to spare.

Unlike you, he needs to take a bank loan to buy the property. So therein lies the main difference.

 

[cybercom8]

first point. no more stamp duty. the flat is under my mom for good. she has willed it to my daughter. she is too young to buy a hdb under her name now. No need stamp duty for this sort of transfer.

second point. ts is is trying to get a loan under his name for a purchase of a unit under the kid's name. i am not here to talk about the transfer and all the crab. the idea is cancel the word mom and insert the word son. everything else could work.

did you take a loan for your mum's hdb?

 

[henrylbh]

i did not use my kid's name. i used my mom's name for my second property in sg.

my first condo was bought many years ago. it has appreciated substantially in price. i took a loan on my first condo. because of this, i have quite a bit of cash on hand to buy a hdb under my mom's name and i siam absd

I also used my father's name to buy a hdb flat in his name and another in sister's name with half share

 

[BBCWatcher]

Unlike you, he needs to take a bank loan to buy the property. So therein lies the main difference.

Hypothetically, Person A who owns Property A could borrow against accumulated equity in Property A, then take the loan amount and hand it to Person B. Person B could then pay cash for Property B. In this scenario Property B must have at least a somewhat lower market valuation than Property A.

As another hypothetical option, Person A could borrow against accumulated equity in Properties A1, A2, and A3. Person A could then take the loan proceeds and give them to Person B, who then pays cash for Property B. In this scenario Property B must have at least a somewhat lower market valuation than the market value of Properties A1, A2, and A3 combined.

 

[JuniorLion]

Hypothetically, Person A who owns Property A could borrow against accumulated equity in Property A, then take the loan amount and hand it to Person B. Person B could then pay cash for Property B. In this scenario Property B must have at least a somewhat lower market valuation than Property A.

As another hypothetical option, Person A could borrow against accumulated equity in Properties A1, A2, and A3. Person A could then take the loan proceeds and give them to Person B, who then pays cash for Property B. In this scenario Property B must have at least a somewhat lower market valuation than the market value of Properties A1, A2, and A3 combined.

Anyone succeeded in trying out the aforementioned 2 hypothetical situations, please share.

 

[henrylbh]

Anyone succeeded in trying out the aforementioned 2 hypothetical situations, please share.

Sure workable. All depends on what's the cost of fund and the borrower's standing.

 

[dork32]

It will work if TS has a few millions to spare.

Unlike you, he needs to take a bank loan to buy the property. So therein lies the main difference.

i dont have a few million to spare.

i have mentioned. i took a bigger loan on my current property and used the money to pay for the hdb