View Full Version : Property Loans
My fren was looking around for a property recently so like what mose people do, he went to source for a in-principle approval on loan quantum from banks. Guess what? He is eligible to loan up to $4m based on his monthly income of $12k.
I shudder to think what would happen if economy really hits a bad spot.
ikan bilis
02-06-12, 09:36
ya... around there....
4mil loan, 1.5%, 35yr tenure, instalment at 12K/month...
i was told by bank officer if that's your 2nd property buying, and LTV of 60%, you can use full amount of your monthly income as instalment...
and, what i told the bank officer... like that me better wait for all banks to be in problem, before getting that property....
don't ask me why hor.... :beats-me-man:
ya... around there....
4mil loan, 1.5%, 35yr tenure, instalment at 12K/month...
i was told by bank officer if that's your 2nd property buying, and LTV of 60%, you can use full amount of your monthly income as instalment...
and, what i told the bank officer... like that me better wait for all banks to be in problem, before getting that property....
don't ask me why hor.... :beats-me-man:
Yup forgot to add, its her 2nd property and first hdb still got o/s loan leh.
If banks are willing to loan full based on her full monthly income means she doesnt have to eat every month? Or is it the case banks assume, her expenses would be covered by rental from hdb?
Whats the maximum age that the loan can stretch into? 65 years old?
ya... around there....
4mil loan, 1.5%, 35yr tenure, instalment at 12K/month...
i was told by bank officer if that's your 2nd property buying, and LTV of 60%, you can use full amount of your monthly income as instalment...
and, what i told the bank officer... like that me better wait for all banks to be in problem, before getting that property....
don't ask me why hor.... :beats-me-man:
Disaster waiting to happen.
Like that Mr B might be right afterall.
If can't cover instalment bank will take over sell at 30% below value.
Mr B dream of 50% might become a reality. Hehe
Me think need to work harder to top up till 50% :doh:
ikan bilis
02-06-12, 10:26
If banks are willing to loan full based on her full monthly income means she doesnt have to eat every month? Or is it the case banks assume, her expenses would be covered by rental from hdb?
Whats the maximum age that the loan can stretch into? 65 years old?
think local banks 70, foreign bank 75.... i might not be updated...
My fren was looking around for a property recently so like what mose people do, he went to source for a in-principle approval on loan quantum from banks. Guess what? He is eligible to loan up to $4m based on his monthly income of $12k.
I shudder to think what would happen if economy really hits a bad spot.
May I know what how old is your friend and his profession? 12k monthly salary is impressive.
Interesting piece of information.... Garmant come up at more and more CMs...
Developers come up with even more counter-CMs... vouchers, rebates, absorptions etc.
Now, even banks join in the counter-CM game... with this type loan quantums.:cheers4:
No wonder the CMs don't work!:tongue3:
ya... around there....
4mil loan, 1.5%, 35yr tenure, instalment at 12K/month...
i was told by bank officer if that's your 2nd property buying, and LTV of 60%, you can use full amount of your monthly income as instalment...
and, what i told the bank officer... like that me better wait for all banks to be in problem, before getting that property....
don't ask me why hor.... :beats-me-man:
4 mil property. 60% LTV.... that's a 6.67mil property....:)
Banks won't be in problem with 60% LTV. Property prices need to drop 40% for them to even begin to get into trouble. That's why they happily lend lend lend.... if you dare to take up.... Maybe the next CM needs to be targeted at the banks!
ikan bilis
02-06-12, 11:37
4 mil property. 60% LTV.... that's a 6.67mil property....:)
Banks won't be in problem with 60% LTV. Property prices need to drop 40% for them to even begin to get into trouble. That's why they happily lend lend lend.... if you dare to take up.... Maybe the next CM needs to be targeted at the banks!
heya... if you are around 30yo and got that S$2.67Mil ready in cash for 40% deposit... bank don;t trust your that 12K amount pay slips also lah... :D
TheOnlyGayInTheVillage
02-06-12, 17:01
BROS. Business is bad. And I do mean BAD. My banker asking for lobang and doing side stuff like headhunting or even land banking. Lawyers come ask me for loans etc to tie over the cashflow. Banks will bend over backwards for your business. Just make sure you can swallow the monthly mortgage and spit out the payment when interest rates rise... Coz now its so low and growth so slow or none existent for them.
May I know what how old is your friend and his profession? 12k monthly salary is impressive.
12K impressive meh ?
Some Office Boy gets more than that!
DKSG
heya... if you are around 30yo and got that S$2.67Mil ready in cash for 40% deposit... bank don;t trust your that 12K amount pay slips also lah... :D
I agree with JiangYuZai!
It is a myth that banks keep looking at your pay slips.
Nowadays, banks no longer look at my pay slips, since they see it for 10 over years ... haha! They look at what you have ... and fantasize what happen if they can sell them off if you default! hahahhaa!
DKSG
BROS. Business is bad. And I do mean BAD. My banker asking for lobang and doing side stuff like headhunting or even land banking. Lawyers come ask me for loans etc to tie over the cashflow. Banks will bend over backwards for your business. Just make sure you can swallow the monthly mortgage and spit out the payment when interest rates rise... Coz now its so low and growth so slow or none existent for them.
Dont worry TOGV, the next tsunami of cash is coming real soon.
QE from US, QE from Europe, QE from China!
The next round of cash tsunami can sweep everything away!
So, listen to LKY, DONT SELL YOUR HDB!
DKSG
Heard from a radio at around 6pm, but unfortunately didn't really pay attention to it, it is something like the developer is offering lucky draw for a car for the purchase of, sound like "Floxxxxx" condo.
If its 2nd property, they are assuming you will rent it out.... hence with 60% LTV and you rent it out... risk really very low
TheOnlyGayInTheVillage
03-06-12, 12:25
Dont worry TOGV, the next tsunami of cash is coming real soon.
QE from US, QE from Europe, QE from China!
The next round of cash tsunami can sweep everything away!
So, listen to LKY, DONT SELL YOUR HDB!
DKSG
I would never - if i could get one in the first place.
think local banks 70, foreign bank 75.... i might not be updated...
Sorry, local banks like DBS and UOB 75, some foreign banks 70
My fren was looking around for a property recently so like what mose people do, he went to source for a in-principle approval on loan quantum from banks. Guess what? He is eligible to loan up to $4m based on his monthly income of $12k.
I shudder to think what would happen if economy really hits a bad spot.
Does he have reserves that can last for at least 2 yrs of monthly instalment? If after buying, bank account is $0 while he depends on rental income to subsidise the monthly instalment, then it is overleveraged.
As a general guideline, monthly instalment should not be more than 50% of monthly active income (excluding passive income such as rental cos u never know when it becomes vacant for a long long period)
buttercarp
06-06-12, 14:47
Heard from a radio at around 6pm, but unfortunately didn't really pay attention to it, it is something like the developer is offering lucky draw for a car for the purchase of, sound like "Floxxxxx" condo.
Got COE included?
If no COE then no talk.
buttercarp
06-06-12, 14:50
My fren was looking around for a property recently so like what mose people do, he went to source for a in-principle approval on loan quantum from banks. Guess what? He is eligible to loan up to $4m based on his monthly income of $12k.
I shudder to think what would happen if economy really hits a bad spot.
If I earn $12k per month even if I were single without family and the need to support parents, I won't dare to take $4m loan!
If I earn $12k per month even if I were single without family and the need to support parents, I won't dare to take $4m loan!
some pple like to think that if individual income take home is above $10k a mth can afford flashy cars and big houses. but actually it's still pretty tight.
car expenses (at current coe and petrol prices and parking rates :doh: ): 2k
comprehensive insurance to cover extended family: 2k
a moderate lifestyle (restaurants and entertainment): 2k
2 kids enrichment/childcare/tuition etc: 2k
misc expenses (parents' allowances, new clothes, gadgets, angpao $, taxes, drinks etc): 2k
so technically, not much left for big house liao leh. :beats-me-man:
some pple like to think that if individual income take home is above $10k a mth can afford flashy cars and big houses. but actually it's still pretty tight.
car expenses (at current coe and petrol prices and parking rates :doh: ): 2k
comprehensive insurance to cover extended family: 2k
a moderate lifestyle (restaurants and entertainment): 2k
2 kids enrichment/childcare/tuition etc: 2k
misc expenses (parents' allowances, new clothes, gadgets, angpao $, taxes, drinks etc): 2k
so technically, not much left for big house liao leh. :beats-me-man:
You are quite right, although the figures will vary from family to family.
Haven't include what happens if there is a maid - 1K more thereabout.
$4m loan to buy $6.7m detached / bungalow? Tat means ur frd has $2.7m cash to make downpayment? Ask ur friend to get a semi d at $5m and loan $3m with cash reserve of $700K for rainy days (interest rate spike, temporary loss of income).
My fren was looking around for a property recently so like what mose people do, he went to source for a in-principle approval on loan quantum from banks. Guess what? He is eligible to loan up to $4m based on his monthly income of $12k.
I shudder to think what would happen if economy really hits a bad spot.
i am guessing there is some miscommunication here. for $12k monthly income you cant borrow $4m, but you can borrow 60% of the $4m ($2.4m loan) to buy a $4m property because for bank, 60% LTV is almost risk free.
Powered by vBulletin® Version 4.2.2 Copyright © 2024 vBulletin Solutions, Inc. All rights reserved.