Advise on bank loan for uncompleted homes

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08-05-09, 15:26
terence

Advise on bank loan for uncompleted homes

I will be taking up a 60-70% bank loan on a 1 million home (uncompleted).
Can anyone advise which of the banks currently offer the best rates?

I had checked with OCBC, SCB and HSBC on their rates.

OCBC - Variable (lock in 3 years)
1st Year - 1.68%
2nd Year - 2.48%
3rd Year - 2.88%
Thereafter 3.75%
TOP + 3 months, can change loan package.

SCB - (Sibor, no lock in)
SIBOR (3mths) + 1.25%

HSBC - (Sibor, no lock in)
SIBOR (3mths)+ 1.25%

Any one know of any other banks with a better rate, excluding those that need to put in some money to maintain a savings account....?? Appreciate any advise. Thanks
08-05-09, 15:51
jitkiat

Quote:

Originally Posted by terence

I will be taking up a 60-70% bank loan on a 1 million home (uncompleted).
Can anyone advise which of the banks currently offer the best rates?

I had checked with OCBC, SCB and HSBC on their rates.

OCBC - Variable (lock in 3 years)
1st Year - 1.68%
2nd Year - 2.48%
3rd Year - 2.88%
Thereafter 3.75%
TOP + 3 months, can change loan package.

SCB - (Sibor, no lock in)
SIBOR (3mths) + 1.25%

HSBC - (Sibor, no lock in)
SIBOR (3mths)+ 1.25%

Any one know of any other banks with a better rate, excluding those that need to put in some money to maintain a savings account....?? Appreciate any advise. Thanks

Maybank 1st year 1.6, 2nd year 2.2, 3rd year 2.9, after that refinance
08-05-09, 17:38
paulho77

Quote:

Originally Posted by jitkiat

Maybank 1st year 1.6, 2nd year 2.2, 3rd year 2.9, after that refinance

plus they have flexi-repayment up to max. 15% of yr loan in the period of 3 years
08-05-09, 18:26
8kenshin

The Edge magazine lists all the home loan rates every issue and is worth checking out.
08-05-09, 20:13
DC33_2008

Quote:

Originally Posted by terence

I will be taking up a 60-70% bank loan on a 1 million home (uncompleted).
Can anyone advise which of the banks currently offer the best rates?

I had checked with OCBC, SCB and HSBC on their rates.

OCBC - Variable (lock in 3 years)
1st Year - 1.68%
2nd Year - 2.48%
3rd Year - 2.88%
Thereafter 3.75%
TOP + 3 months, can change loan package.

SCB - (Sibor, no lock in)
SIBOR (3mths) + 1.25%

HSBC - (Sibor, no lock in)
SIBOR (3mths)+ 1.25%

Any one know of any other banks with a better rate, excluding those that need to put in some money to maintain a savings account....?? Appreciate any advise. Thanks

Are they meant for uncompleted project? I have learnt from my RM that the loan package for uncompleted is not as good as completed project.
08-05-09, 22:48
hkching

I think Citibank and HSBC is good.
HSBC 3M SIBOR + 1.25% no lock-in
Citibank 1,3,6,12M SIBOR + 1.25% no lock in

For citibank, you can change which SIBOR to use after fulfilling the number of months for the previous SIBOR.
08-05-09, 23:26
apple3

Quote:

Originally Posted by terence

I will be taking up a 60-70% bank loan on a 1 million home (uncompleted).
Can anyone advise which of the banks currently offer the best rates?

I had checked with OCBC, SCB and HSBC on their rates.

OCBC - Variable (lock in 3 years)
1st Year - 1.68%
2nd Year - 2.48%
3rd Year - 2.88%
Thereafter 3.75%
TOP + 3 months, can change loan package.

SCB - (Sibor, no lock in)
SIBOR (3mths) + 1.25%

HSBC - (Sibor, no lock in)
SIBOR (3mths)+ 1.25%

Any one know of any other banks with a better rate, excluding those that need to put in some money to maintain a savings account....?? Appreciate any advise. Thanks

Hi Terence

Perhaps let me share some insights on another perspective.
You could get all the good advise on loans from the experts here though.

Uncompleted = Yet to TOP.
Since you have to secure financing yourself, I reckon you did not opt for Interest Absorb Scheme, so I guess you are on Progress Payment.

Eg; Absolute at 1 million and you down say 40%.
And on a loan quantum of 600K for the remain 60%.

If progress payment schedule at 40% or less, don't bother to get a loan yet, just get some in principal of approval.

If progress payment schedule at 45%, if you can fork out another 50k, then fine, no loan needed yet.

If progress payment schedule at 35%, you also don't need to get loan since you set aside 400k for downpayment and you are still within your range.

If progress payment schedule at 50% and you decided to kick of your loan of 600K and call out 100k to pay to developer then PLEASE TAKE NOTE that you will be paying 1/6 of you loan calculation since the rest of 500k yet to consume. And 100k for don't make any much differences on interest rate. It the lock down period that matters.

So you could make some adjustments (Downpayment amount, lockdown period + interest, etc) to get the deal but foremost, you need to know how much lego bricks had been use and whats the schedule of the builders.

Do take note of stamp duty and related legal fee. :)
09-05-09, 08:25
terence

Quote:

Originally Posted by apple3

Hi Terence

Perhaps let me share some insights on another perspective.
You could get all the good advise on loans from the experts here though.

Uncompleted = Yet to TOP.
Since you have to secure financing yourself, I reckon you did not opt for Interest Absorb Scheme, so I guess you are on Progress Payment.

Eg; Absolute at 1 million and you down say 40%.
And on a loan quantum of 600K for the remain 60%.

If progress payment schedule at 40% or less, don't bother to get a loan yet, just get some in principal of approval.

If progress payment schedule at 45%, if you can fork out another 50k, then fine, no loan needed yet.

If progress payment schedule at 35%, you also don't need to get loan since you set aside 400k for downpayment and you are still within your range.

If progress payment schedule at 50% and you decided to kick of your loan of 600K and call out 100k to pay to developer then PLEASE TAKE NOTE that you will be paying 1/6 of you loan calculation since the rest of 500k yet to consume. And 100k for don't make any much differences on interest rate. It the lock down period that matters.

So you could make some adjustments (Downpayment amount, lockdown period + interest, etc) to get the deal but foremost, you need to know how much lego bricks had been use and whats the schedule of the builders.

Do take note of stamp duty and related legal fee. :)

Thanks for the helpful information. I guess the progress payment schedule is at about 35%-45% for my place. Let's say schedule is at 35%, and if i take a loan without any lock in, i suppose i wont incur any interest on the loan that i take up as its not disbursed yet right? I thought of getting the loan now as banks offer some legal subsidy which i can enjoy. Furthermore i do not have any law firm contacts as well.
09-05-09, 08:29
terence

Quote:

Originally Posted by DC33_2008

Are they meant for uncompleted project? I have learnt from my RM that the loan package for uncompleted is not as good as completed project.

Above are for uncompleted projects. Completed projects u can take up fixed rates but not variable rates.
09-05-09, 08:32
terence

Quote:

Originally Posted by hkching

I think Citibank and HSBC is good.
HSBC 3M SIBOR + 1.25% no lock-in
Citibank 1,3,6,12M SIBOR + 1.25% no lock in

For citibank, you can change which SIBOR to use after fulfilling the number of months for the previous SIBOR.

I am looking at converting my loan to fixed rate after TOP. Historically, do u think HSBC or CITIBANK offer a better fixed rate loan? a SCB banker told me that they offer very competitive fixed rate package all these years. Is this true?
09-05-09, 11:56
jonleelk

Quote:

Originally Posted by terence

I am looking at converting my loan to fixed rate after TOP. Historically, do u think HSBC or CITIBANK offer a better fixed rate loan? a SCB banker told me that they offer very competitive fixed rate package all these years. Is this true?

when i spoke to CITI last month, they don't have any fixed rate package at the moment...all SIBOR.
10-05-09, 02:30
focus

Eh.. I got a question..

For subsale property that is yet to TOP like MBR..

If I get from seller bought at $1mil and now I am getting it from seller at $2mil, how much do I have to pay the seller?

Is it the different between the original price and my purchase price, (ie, $1mil), while the remainder $1mil will be paid in progress to the developer?
10-05-09, 03:14
apple3

Quote:

Originally Posted by terence

Thanks for the helpful information. I guess the progress payment schedule is at about 35%-45% for my place.
If it 40% and below which you have set aside, well, for me, I won't really kick off any loan yet.

Let's say schedule is at 35%, and if i take a loan without any lock in, i suppose i wont incur any interest on the loan that i take up as its not disbursed yet right?
Yes, you are right. No interest and instalment until the bank disburse the 1st dollar.

I thought of getting the loan now as banks offer some legal subsidy which i can enjoy.
Some bank only disburse legal subsidy upon disbursing the 1st dollar, some bank won't kick off with you in this case because their sale of loan couldn't be recognise yet as your downpayment still within the progressive payment schedule call by developer. Do chk with your bank for this issue.

Furthermore i do not have any law firm contacts as well.
I would say law firm contacts is the last thing to bother with. Any bank will have a list of panel lawyers to chose from.

Reference:
http://forums.condosingapore.com/sho...?t=7473&page=4
10-05-09, 03:17
apple3

Quote:

Originally Posted by focus

Eh.. I got a question..

For subsale property that is yet to TOP like MBR..

If I get from seller bought at $1mil and now I am getting it from seller at $2mil, how much do I have to pay the seller?

Is it the different between the original price and my purchase price, (ie, $1mil), while the remainder $1mil will be paid in progress to the developer?

can you rephase your question? why all seller? who the buyer?

the only seller is the developer. the rest are reseller until the last one dweller.

FYI, any subsale will cause IAS or DPS from original owner that buy from developer to convert to PPS for the new buyer.
10-05-09, 07:55
terence

Quote:

Originally Posted by apple3

Thanks for the helpful information. I guess the progress payment schedule is at about 35%-45% for my place.
If it 40% and below which you have set aside, well, for me, I won't really kick off any loan yet.

Let's say schedule is at 35%, and if i take a loan without any lock in, i suppose i wont incur any interest on the loan that i take up as its not disbursed yet right?
Yes, you are right. No interest and instalment until the bank disburse the 1st dollar.

I thought of getting the loan now as banks offer some legal subsidy which i can enjoy.
Some bank only disburse legal subsidy upon disbursing the 1st dollar, some bank won't kick off with you in this case because their sale of loan couldn't be recognise yet as your downpayment still within the progressive payment schedule call by developer. Do chk with your bank for this issue.

Furthermore i do not have any law firm contacts as well.
I would say law firm contacts is the last thing to bother with. Any bank will have a list of panel lawyers to chose from.

Reference:
http://forums.condosingapore.com/sho...?t=7473&page=4

thanks for the information!
12-05-09, 10:51
duckweed

personally, i'd prefer to choose a lawyer who does not sit on the bank's panel. there will be conflict of interest in the event things do not turn out right. your lawyer (who will also be representing the bank) will not be able to act in your best interest.
12-05-09, 11:00
Acer

Quote:

Originally Posted by duckweed

personally, i'd prefer to choose a lawyer who does not sit on the bank's panel. there will be conflict of interest in the event things do not turn out right. your lawyer (who will also be representing the bank) will not be able to act in your best interest.

if the lawyer is nt in the bank's panel. That's mean had to pay twice lawyer fee
12-05-09, 11:46
duckweed

Quote:

Originally Posted by Acer

if the lawyer is nt in the bank's panel. That's mean had to pay twice lawyer fee

i wasn't sure if that's the case and decided to check my past transactions. don't see anywhere that states i am paying for the bank's legal fees. the legal fees i paid were as per agreed with lawyer when i first signed up with them.

i note, however, that i had to pay for CPF board's legal fees since my lawyer was not in CPF's panel.
12-05-09, 17:28
apple3

Quote:

Originally Posted by Acer

if the lawyer is nt in the bank's panel. That's mean had to pay twice lawyer fee

Quote:

Originally Posted by duckweed

i wasn't sure if that's the case and decided to check my past transactions. don't see anywhere that states i am paying for the bank's legal fees. the legal fees i paid were as per agreed with lawyer when i first signed up with them.

i note, however, that i had to pay for CPF board's legal fees since my lawyer was not in CPF's panel.

I don't know what Acer meant but paying the lawyer fee twice is not true in any context.

Bank pay for their own lawyer fee. (Lawyer from panel)
You chose your own lawyer you pay your own fee. (Subsidies if available still apply)

And duckweed, so long you use your money in CPF OA, CPF legal fee is applicable regardless of any lawyer from the bar. And the fee you pay is for the CPF lawyer (of course from their own panel). It 2 different things but your lawyer present you a consolidated bill of course.

Your use of different lawyers between bank and yours have its ground though.

I re-post one of my posting from another thread on "lawyers".

1. The Seller Lawyer. Simple. (Or Developer Lawyer)

2a. The Buyer Lawyer or Bank Lawyer, he can chose to use the bank's panel lawyer, which is acting for the bank interest to act for him as well. This approach usually save on some legal fee since panel usually cheaper and legal subsidy may not in full. (Of course it the bank you going get the financing from.. :banghead: )

2b. Some prefer their own Buyer Lawyer. I do, I use those that I'm comfort with especially with PPS which no loan is secure yet. But since nowsady, most conveyancing firms are panel guys, so it ok. They are flexible enough to go direct to the bank for reimbursement of your legal subsidy and you pay only the shortfall. In fact, my last purchase the bank change to my lawyer which happen to be in their panel to have better effect on costing and liasion. My associate also happy, I pull in bank fee to him.

3. Developer lawyer. Subsale case. Buyer lawyer will liase with developer lawyer about the transaction/transfer & about DPS to PPS & progress schedule percentage, blah blah blah..

4. CPF Lawyer. So long you touch your CPF you need to pay. The last time I touch before the minimum 53k was more than 10 years back, it may be different now. That time CPF legal fee is fix at $1100 and my lawyer charge me 2%($800+) for a 400K+ property. So total abt $2000 which all can claim from legal subsidy or use CPF.

5. Foreign Lawyer. For oversea property. Say the condo beside KLCC which just TOP last month and you may need a foreign lawyer to act for your interest. This one a bit complex. Anyway, Malaysia no sub-sale.

Thats all about lawyer for conveyancing purpose. For your buddy, ask him to get the above 2a or 2b to go act for him. Replacement cost, cost diff or simply liquidation damage whatever.. I don't understand & don't believe the lawyer don't know this.

In any case, if a loan had been secure, the bank lawyer will act as well if full 20% had been paid up by buyer.
12-05-09, 22:19
mezz72sg

2% of $400k = $800??? i think your lawyer can talk but cannot count.
13-05-09, 10:07
Acer

Quote:

Originally Posted by apple3

I don't know what Acer meant but paying the lawyer fee twice is not true in any context.

Bank pay for their own lawyer fee. (Lawyer from panel)
You chose your own lawyer you pay your own fee. (Subsidies if available still apply)

And duckweed, so long you use your money in CPF OA, CPF legal fee is applicable regardless of any lawyer from the bar. And the fee you pay is for the CPF lawyer (of course from their own panel). It 2 different things but your lawyer present you a consolidated bill of course.

Your use of different lawyers between bank and yours have its ground though.

I re-post one of my posting from another thread on "lawyers".

1. The Seller Lawyer. Simple. (Or Developer Lawyer)

2a. The Buyer Lawyer or Bank Lawyer, he can chose to use the bank's panel lawyer, which is acting for the bank interest to act for him as well. This approach usually save on some legal fee since panel usually cheaper and legal subsidy may not in full. (Of course it the bank you going get the financing from.. :banghead: )

2b. Some prefer their own Buyer Lawyer. I do, I use those that I'm comfort with especially with PPS which no loan is secure yet. But since nowsady, most conveyancing firms are panel guys, so it ok. They are flexible enough to go direct to the bank for reimbursement of your legal subsidy and you pay only the shortfall. In fact, my last purchase the bank change to my lawyer which happen to be in their panel to have better effect on costing and liasion. My associate also happy, I pull in bank fee to him.

Once I ask a Banker, mention that I want to use my own Buyer Lawyer who happen is not in the bank panel.
The Banker told me, the bank still will get a lawyer to represent them. As my own Buyer Lawyer is not inside, therefore, there will not be any reimbursement of the legal subsidy.
13-05-09, 23:30
apple3

Quote:

Originally Posted by mezz72sg

2% of $400k = $800??? i think your lawyer can talk but cannot count.

Mine typo. 1 decimal off.
13-05-09, 23:32
apple3

Quote:

Originally Posted by Acer

Once I ask a Banker, mention that I want to use my own Buyer Lawyer who happen is not in the bank panel.
The Banker told me, the bank still will get a lawyer to represent them. As my own Buyer Lawyer is not inside, therefore, there will not be any reimbursement of the legal subsidy.

The bank for sure will get a their lawyer to act for them.

Legal subsidies is a projected cost to them, use their panel or customer use own lawyer play little difference to them.

Maybe the mobile banker wanna eat up your subsidies.
14-05-09, 19:24
duckweed

Quote:

Originally Posted by apple3

I don't know what Acer meant but paying the lawyer fee twice is not true in any context.

Bank pay for their own lawyer fee. (Lawyer from panel)
You chose your own lawyer you pay your own fee. (Subsidies if available still apply)

And duckweed, so long you use your money in CPF OA, CPF legal fee is applicable regardless of any lawyer from the bar. And the fee you pay is for the CPF lawyer (of course from their own panel). It 2 different things but your lawyer present you a consolidated bill of course.

Your use of different lawyers between bank and yours have its ground though.

I re-post one of my posting from another thread on "lawyers".

1. The Seller Lawyer. Simple. (Or Developer Lawyer)

2a. The Buyer Lawyer or Bank Lawyer, he can chose to use the bank's panel lawyer, which is acting for the bank interest to act for him as well. This approach usually save on some legal fee since panel usually cheaper and legal subsidy may not in full. (Of course it the bank you going get the financing from.. :banghead: )

2b. Some prefer their own Buyer Lawyer. I do, I use those that I'm comfort with especially with PPS which no loan is secure yet. But since nowsady, most conveyancing firms are panel guys, so it ok. They are flexible enough to go direct to the bank for reimbursement of your legal subsidy and you pay only the shortfall. In fact, my last purchase the bank change to my lawyer which happen to be in their panel to have better effect on costing and liasion. My associate also happy, I pull in bank fee to him.

3. Developer lawyer. Subsale case. Buyer lawyer will liase with developer lawyer about the transaction/transfer & about DPS to PPS & progress schedule percentage, blah blah blah..

4. CPF Lawyer. So long you touch your CPF you need to pay. The last time I touch before the minimum 53k was more than 10 years back, it may be different now. That time CPF legal fee is fix at $1100 and my lawyer charge me 2%($800+) for a 400K+ property. So total abt $2000 which all can claim from legal subsidy or use CPF.

5. Foreign Lawyer. For oversea property. Say the condo beside KLCC which just TOP last month and you may need a foreign lawyer to act for your interest. This one a bit complex. Anyway, Malaysia no sub-sale.

Thats all about lawyer for conveyancing purpose. For your buddy, ask him to get the above 2a or 2b to go act for him. Replacement cost, cost diff or simply liquidation damage whatever.. I don't understand & don't believe the lawyer don't know this.

In any case, if a loan had been secure, the bank lawyer will act as well if full 20% had been paid up by buyer.

regarding cpf legal fees.... i share 2 different experiences:
for one, i was charged $400 as my lawyer was not in the cpf panel. for another, my lawyer says no additional charges as they are in the cpf panel.
note that these are 2 different legal firms.
15-05-09, 04:20
apple3

Quote:

Originally Posted by duckweed

regarding cpf legal fees.... i share 2 different experiences:
for one, i was charged $400 as my lawyer was not in the cpf panel. for another, my lawyer says no additional charges as they are in the cpf panel.
note that these are 2 different legal firms.

Well.. hmm.. for your 2nd case, the cpf legal fee MUST have been consolidated in your total bill of conveyancing or the lawyer pay from his own pocket for you. There is NO WAY a person use CPF for property without having to pay CPF legal fee be it panel or not.

Reference:
http://mycpf.cpf.gov.sg/Members/HSG-Site/CPFHSG_CPL.htm