once you've paid your loan...

[doubleben]

Once the loan is paid and you receive your title...where to store this document? I was wondering whether it is necessary to store it in a safe, or is there no need to do so?

Thank you for your suggestions :tennis:

[sherlock]

Buy a safe and put at home... then u can stash it there

[indomie]

Use it to borrow more money. Return it back to the bank

[doubleben]

Buy a safe and put at home... then u can stash it there


Thanks...what will happen if it disappears?

[doubleben]

Use it to borrow more money. Return it back to the bank


I'll wait until property prices and taxes become more reasonable. Until then...overseas property at the price of a SG downpayment. :witless:

[imjason]

Mine in cisco safe

[Werther]

Use it to borrow more money. Return it back to the bank

Hi bro indomie

If I have a pty, left 20% to go, can I borrow $$ from this property to pough into another property..assuming I put under my child name...

[Arcachon]

Ask Mortgageguru.

http://forums.condosingapore.com/showthread.php/22599-Anyone-with-Caveats?highlight=cash+out

[mummy]

Hi bro indomie

If I have a pty, left 20% to go, can I borrow $$ from this property to pough into another property..assuming I put under my child name...

I think that is called an equity loan, which is what I did...borrowed 400k against my terrace house which has risen in value since we bought it..

[Yuki]

I think that is called an equity loan, which is what I did...borrowed 400k against my terrace house which has risen in value since we bought it..

How is borrowing from own property different from borrowing from bank?

What happens if the value raised has crashed below the value?

[mummy]

How is borrowing from own property different from borrowing from bank?

What happens if the value raised has crashed below the value?

It is borrowing from bank but strictly speaking, not supposed to use the loan to buy Sg properties though some still do..can use it for other investments or business..

The bank has to assess your income and ability to repay...if value crashes, then risk of margin call where we have to top up cash but my borrowings in total for my terrace is 1mil and value is 2 mil...banker kept reassuring me low risk of margin call.

I took an equity loan before the TDSR rules came out, banker had warned me new rules were coming so advised me to quickly take loan before the new rules came out. So my car loan was not factored in then but maybe because my earning capacity was there as a doctor so they granted me the loan too..

[Arcachon]

MortgageGuru - correct me if I am wrong.

How is borrowing from own property different from borrowing from bank?

Borrowing from the Bank need collateral, in this case the collateral is your property.

Only private property can be use, HDB cannot be use.

When you buy your property for SGD 535,000 and valuation is SGD 1,550,000 then you have SGD 1,015,000 of equity gain on your property.

The Bank then can loan you depends on the time of the Day before Fri 1700, MAS requirement to you the money.

Example : the Time of the day MAS requirement is 60% LTV with no assessment of you income then the Bank can loan you 60% of SGD 1,550,000 = SGD 930,000.

If you want to use your property as collateral then the Bank will deduct SGD 930,000 - SGD 428,000 = SGD 502,000 to you.

The money is call cash-out.

What happens if the value raised has crashed below the value?[/QUOTE]

When the value crashed below SGD 930,000 the Bank will hello hello you to top up the different, if not they sell on your behalf call mortgagee sale.

[MortgageGuru]

Hi Arcachon

Yes you are right. You can't borrow from your property. You are borrowing from the bank and your property is a collateral. I don't think any bank will do loans with no assessment of your income.
Normally after some time your loan will decrease from $428,000, depending on the interest rates you are taking.
So for example you paid $70,000 in principle in the 2 years and end of this 2 years your outstanding loan is $358,000 instead.
If your monthly payments are made with CPF, then the max loan amount will be cannot include this CPF amount. if it is paid with cash then it can be included in the cash out amount.

When value drops too much, its the bank's discretion to do a margin call to ask you to top up the difference. If not it will be forced sale of the collateral. And if the sale amount is still less than the amount of outstanding loan, you still owe the bank the difference.

[Arcachon]

Thanks