Refinancing/Repricing Mortgage Without Salary

[QNH1013]

Hi Guys,

Anyone here know whether someone who is not drawing a salary can refinance/reprice a home loan based on other assets owned/or income derived from assets?

How would TDSR be applied in such scenarios? On the MAS website, it states that a certain % "haircut" be applied to the asset values/income streams, plus having a 4 year amortisation schedule applied to the assets. Practically, would the math work out as below:

Assuming you have unpledged stocks/bonds which give an income of $5k a month, would a 70% haircut would give an equivalent of someone earning $1500? Or would the math begin from the market value of the assets?

The next question I have is, assuming the math above is correct and one is able to meet the TDSR for a given loan package, would he/she be eligible for the regular loan packages which are advertised? Or would the banks/FIs charge a higher interest rate due to the lack of salary?

Thanks in advance!

 

[BBCWatcher]

Anyone here know whether someone who is not drawing a salary can refinance/reprice a home loan based on other assets owned/or income derived from assets?

It's occasionally possible via something called asset-based lending. The most straightforward way is to place a fixed deposit with the lending institution.

Yes, the MAS has a formula to "downgrade" certain assets and income streams, including freelance and self-employment income for that matter. Moreover, the lender is not required to extend the maximum amount of credit MAS allows.

The next question I have is, assuming the math above is correct and one is able to meet the TDSR for a given loan package, would he/she be eligible for the regular loan packages which are advertised? Or would the banks/FIs charge a higher interest rate due to the lack of salary?

It's up to the lender.

 

[QNH1013]

It's occasionally possible via something called asset-based lending. The most straightforward way is to place a fixed deposit with the lending institution.

Ah got it, thanks.

Any idea what % of the total sum loaned or monthly installment this is normally set at?

 

[Itguru888]

Sorry to hijack the thread but with repricing will lending bank ask for income proof?

I know for refinancing for sure they will.

 

[reddevil0728]

Sorry to hijack the thread but with repricing will lending bank ask for income proof?

I know for refinancing for sure they will.

can check with the bank? but if not wrong, if you participate in their home loan repayment programme, i.e. u pay a portion of it i think 3% off, the process will be faster as they don't need a lot of documentations.

 

[kranjipioneer]

can check with the bank? but if not wrong, if you participate in their home loan repayment programme, i.e. u pay a portion of it i think 3% off, the process will be faster as they don't need a lot of documentations.

Did that (home repayment scheme) and its a breeze for DBS. No need any supporting documents. Just identify the loan package and they'll send a fact sheet. If keen to take up, submit application form (filled in, scan and email). Note that there is still a repricing fee (but negotiable).
If bank approves, they'll do a phone confirmation and new loan package will take effect the following month.

 

[koonzlah]

https://www.smart-towkay.com/blog/view/78-covid-19-waiver-of-tdsr-for-deferment-and-refinancing-of-mortgage-payment-2020

Look at this article. Don't need income now

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