Recommendations for Pte Housing Loan - Jan 2012

[Panerex77]

Any recommendation for private housing loans anyone ?

And I guess I have no choice but to go for a floating rate basis since the property is uncompleted.

Which banks would u recommend?


So far, i got quotes from OCBC and SCB; both floating rates only

OCBC abt 1%
SCB SIBOR + 0.65%




NOOB Question:

Say I purchase a pte property now in Jan 2012.
And I sign up for the loan package now in Jan 2012 for 60%:
Year 1: 1%
Year 2: 2%
Year 3: 3%
Year 4: 4%
Year 5+: floating

Supposed the first disbursement by Bank to Developer is 2 years later i.e., Jan 2014.

So when I start paying the Bank instalment in Jan 2014, will I be subject to Year 1: 1% interest rate, or some other rates?

thank you very much for the advice in advance.

[Arcachon]

Any recommendation for private housing loans anyone ?

And I guess I have no choice but to go for a floating rate basis since the property is uncompleted.

Which banks would u recommend?


So far, i got quotes from OCBC and SCB; both floating rates only

OCBC abt 1%
SCB SIBOR + 0.65%




NOOB Question:

Say I purchase a pte property now in Jan 2012.
And I sign up for the loan package now in Jan 2012 for 60%:
Year 1: 1%
Year 2: 2%
Year 3: 3%
Year 4: 4%
Year 5+: floating

Supposed the first disbursement by Bank to Developer is 2 years later i.e., Jan 2014.

So when I start paying the Bank instalment in Jan 2014, will I be subject to Year 1: 1% interest rate, or some other rates?

thank you very much for the advice in advance.

You should ask your banker that offer you the loan package instead? Nobody know what is the package your sign with the banker, except you and the banker. Try not to use normally, is like that, most of the package are the same etc. :beats-me-man:

[mcmlxxvi]

DBS has always given me the best deals. It helps if you are long time customer and have the bulk of your wealth deposited with them...

[Allthepies]

yup dbs bank is good

[bullman]

DBS has always given me the best deals. It helps if you are long time customer and have the bulk of your wealth deposited with them...

DBS is my number 1 choice. I have been using them since I started in the game. It helps more if you are their Treasures or Private Banking Customer.

[lifeline]

Hi Panerex77,

I know what you are asking about.

Your 1st year interest of 1% (in your example) will start from the time of 1st disbursement, after your 40% is paid up. This will depend on the construction schedule and speed. This also means that you do not need to be in a hurry to get that loan yet (if you do not need yet, and you think the rates will go down further, unlikely though; else can lock in the best offer at your selected timing).

Usually you look at mainly the 1st 2 years of loan rates, cos after that you can refinance already; but still get a lower 3rd year, just in case. Go with your regular banker that you already had a relationship with, if any. If your friend or relative are also getting a loan, apply together and bargain for a better rate on the basis of a higher loan quantum. For me, it has been OCBC, slightly better than market.

Happy shopping,
lifeline

[KarenK]

Hi Panerex77,

I know what you are asking about.

Your 1st year interest of 1% (in your example) will start from the time of 1st disbursement, after your 40% is paid up. This will depend on the construction schedule and speed. This also means that you do not need to be in a hurry to get that loan yet (if you do not need yet, and you think the rates will go down further, unlikely though; else can lock in the best offer at your selected timing).

Usually you look at mainly the 1st 2 years of loan rates, cos after that you can refinance already; but still get a lower 3rd year, just in case. Go with your regular banker that you already had a relationship with, if any. If your friend or relative are also getting a loan, apply together and bargain for a better rate on the basis of a higher loan quantum. For me, it has been OCBC, slightly better than market.

Happy shopping,
lifeline


I will not advise waiting around to get the HL way after u purchase the pty. Banks will normally finance at the lower of purchase price or valn......and if u apply for a HL more than a year after u bought it and the valn has dropped, the bank will only finance based on valn.......

[lifeline]

I will not advise waiting around to get the HL way after u purchase the pty. Banks will normally finance at the lower of purchase price or valn......and if u apply for a HL more than a year after u bought it and the valn has dropped, the bank will only finance based on valn.......


agree with you on this.

[Panerex77]

thanks all for the advice..seems to be inclined towards DBS too...

i will want to get the HL soon, so that the Lawyer fees can be fully subsidised.

but i heard if i want to use CPF to pay, there will be additional legal fees / conveyance fees involved. And this will have to come out from my pocket and not subsidised by the bank.
You guys encountered/ heard the same thing before?

[silver023]

Banks should subsizide legal fees... juz ask your banker to provide you with the panel of approved firms.

The law firms should not be charging you extra for applying to CPF, unless this is done after the transaction has concluded.

So law firms may try to charge you more than the rest... If so, just move on and find one that you are comfortable with.