Some basic home loan questions

to all property veterans,

i am a novice looking to purchase my first property and have some basic questions regarding bank financing.

1) during the time between loan approval and completion, what will happen if I lose my job?
2) if such a situation takes place and the bank cancels my loan, do i stand to lose 1% + 4% + stamp duty paid?
3) can stamp duty be refundedin such an instance and can there be a clause in the sales & purchase agreement to refund the 4%? losing 1% is still acceptable.

thanks in advance for the advice.

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Originally Posted by yeppie99

to all property veterans,

i am a novice looking to purchase my first property and have some basic questions regarding bank financing.

1) during the time between loan approval and completion, what will happen if I lose my job?
2) if such a situation takes place and the bank cancels my loan, do i stand to lose 1% + 4% + stamp duty paid?
3) can stamp duty be refundedin such an instance and can there be a clause in the sales & purchase agreement to refund the 4%? losing 1% is still acceptable.

thanks in advance for the advice.

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Where are you standing now? Bought already or no?

Quote:

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Originally Posted by yeppie99

to all property veterans,

i am a novice looking to purchase my first property and have some basic questions regarding bank financing.

1) during the time between loan approval and completion, what will happen if I lose my job?
2) if such a situation takes place and the bank cancels my loan, do i stand to lose 1% + 4% + stamp duty paid?
3) can stamp duty be refundedin such an instance and can there be a clause in the sales & purchase agreement to refund the 4%? losing 1% is still acceptable.

thanks in advance for the advice.

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If you already paid the deposit for the unit and the loan has been approved, there is no issue as long as you can service the loan... the bank won't know whether you lose your job or not?

1) during the time between loan approval and completion, what will happen if I lose my job?

- you still must continue repayments

2) if such a situation takes place and the bank cancels my loan, do i stand to lose 1% + 4% + stamp duty paid?

- stamp duty cannot be recovered. your 5% is vested towards the purchase price of the property
- banks do not 'cancel' loans, they will demand full settlement, which is (disbursed principal+interest+penalty if any)-(repayments to date). You will need to subsale your property though. If no one buys, then not only do you have to repay the bank, you will have to make good according to the developer's schedule either via another bank loan, cash or CPF.


3) can stamp duty be refundedin such an instance and can there be a clause in the sales & purchase agreement to refund the 4%? losing 1% is still acceptable.

- no

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Originally Posted by nochoice

If you already paid the deposit for the unit and the loan has been approved, there is no issue as long as you can service the loan... the bank won't know whether you lose your job or not?

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got rare cases during the height of the crisis. Bank asked one of my DBS friends to show proof of employment after the exercise. And his mortgager was DBS. butohs eh?

thanks for all the replies.

1) haven't bought yet and it is not a new property, it is a resale private property.
2) for resale private property, can i sell after exercising the option?
3) i am ok with continuing the repayments because i have some standby funds, just worried that the bank 'cancels' or demand full settlement, what do i stand to lose?

Quote:

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Originally Posted by yeppie99

thanks for all the replies.

1) haven't bought yet and it is not a new property, it is a resale private property.
2) for resale private property, can i sell after exercising the option?
3) i am ok with continuing the repayments because i have some standby funds, just worried that the bank 'cancels' or demand full settlement, what do i stand to lose?

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1) haven't bought yet and it is not a new property, it is a resale private property.
If you have this fear, do not buy
2) for resale private property, can i sell after exercising the option?
Yes, of course
3) i am ok with continuing the repayments because i have some standby funds, just worried that the bank 'cancels' or demand full settlement, what do i stand to lose?
Hmmm...Let's say u bought this house @ 1m. Paid 200K down and took up a 800Kloan. This 800K will be disbursed upon completion. If the loan were to cancelled before completion, that means no money to complete the deal. Ihmo, bank when cancelling e loan in this case may not really hack care abt what kind of problems u be facing soon. Which to me most likely action will be taken by seller against u.