Results 1 to 12 of 12

Thread: MayBank Offering 80% Loan?

  1. #1
    Join Date
    Feb 2010
    Posts
    20

    Default MayBank Offering 80% Loan?

    http://info.maybank2u.com.sg/personal/loans/faq/faq-loan-private.aspx

    MayBank offers loan term of up to 40 years, longest I have seen.

    Also, they offer up to 80% Loan-To-Value (see their website, URL above).
    I think they have yet to update their website after the recent cooling measures by the government.

    What are the minimum and maximum loan tenures?

    The minimum loan tenure is 5 years, and the maximum is 40 years or age 82, whichever is earlier and depending on property type.


    What is the maximum loan amount I can borrow?

    The maximum loan amount is up to 80% of net purchase price or market valuation, whichever is lower. Net purchase price is the purchase price after the deduction of the amount of any discount, rebate or any other benefit offered by the vendor or any other party (including legal or stamp fees payment for the property purchase).


    For refinancing, you may borrow up to the full outstanding loan amount with existing financier, subject to the Bank's approval.

  2. #2
    Join Date
    Sep 2009
    Posts
    305

    Default

    Maybank valuation has never been good for me. You can try to ask around and compare the valuation.

  3. #3
    Join Date
    Mar 2009
    Posts
    156

    Default

    Quote Originally Posted by jbond
    http://info.maybank2u.com.sg/personal/loans/faq/faq-loan-private.aspx

    MayBank offers loan term of up to 40 years, longest I have seen.

    Also, they offer up to 80% Loan-To-Value (see their website, URL above).
    I think they have yet to update their website after the recent cooling measures by the government.

    What are the minimum and maximum loan tenures?

    The minimum loan tenure is 5 years, and the maximum is 40 years or age 82, whichever is earlier and depending on property type.


    What is the maximum loan amount I can borrow?

    The maximum loan amount is up to 80% of net purchase price or market valuation, whichever is lower. Net purchase price is the purchase price after the deduction of the amount of any discount, rebate or any other benefit offered by the vendor or any other party (including legal or stamp fees payment for the property purchase).


    For refinancing, you may borrow up to the full outstanding loan amount with existing financier, subject to the Bank's approval.
    There is nothing wrong with the info, u can still get 80% financing if the property is your first one. If one hopes to get 80% for your 2nd property purchase onwards, forget it. 70% is LAW. No bank breaks laws here.

  4. #4
    Join Date
    Nov 2008
    Posts
    197

    Default Loan vs valuation

    Banks have discretion on valuation - which is not regulated. So 70% or 80% is subjective. I recall valuations can vary over 10%.

  5. #5
    Join Date
    Mar 2009
    Posts
    156

    Default

    Quote Originally Posted by Localite
    Banks have discretion on valuation - which is not regulated. So 70% or 80% is subjective. I recall valuations can vary over 10%.
    So what ? even if banks' valuation is much higher than purchase price, the financing for the purchase is only up 70% of the purchase price. There is no way to obtain 80% financing for purchase after the first property.

  6. #6
    Join Date
    Jul 2009
    Posts
    3,006

    Default

    and the buyer has to sign a declaration form... any kickbacks, vouchers, discount will have to be declared to the bank. The bank is not going to take the blame after all.

  7. #7
    Join Date
    Nov 2008
    Posts
    197

    Default Discretion

    Quote Originally Posted by blackfire
    So what ? even if banks' valuation is much higher than purchase price, the financing for the purchase is only up 70% of the purchase price. There is no way to obtain 80% financing for purchase after the first property.
    What I mean is that 80% financing at conservative valuation is similar to 70% financing on realistic / optimistic valuation.

    Last year banks were so conservative that often valuation is 90% of recently transacted prices.

    So nett, it is up to the bank how much they want to loan.

  8. #8
    Join Date
    Feb 2009
    Location
    峨眉山
    Posts
    5,512

    Default

    I dont know what you guys are arguing about. Whether conservative or aggressive valuation the amount the bank will lend you will always be based off 70% of the actual amount you are paying for the purchase, or less. It will never ever be more.

    Even if the seller selling below valuation, the bank will just loan you 70% of that price and not the so called actual valuation price.

  9. #9
    Join Date
    Feb 2010
    Posts
    20

    Default

    Thanks friends!

    I forgot that 80% is still possible - for buyers who are buying their first property.

    Thanks for reminding me.

    Even if the bank is willing to value the property higher, it is going to cause complications.

    Example:
    Seller and buyer agree on sale price of $1 million.

    Buyer (buying his 2nd or subsequent property) can get only $700,000 loan from bank (70%). However, he wants to get a higher loan quantum. So the seller and buyer agree that the sale price is, say $1.6 million (which of course if not true). Bank gives loan of 70% of $1.6 million = $1.12 million.

    Problems:
    • Bank is a willing party to circumvention of laws - no bank will do that.
    • Seller and Buyer are declaring a false sale price (which is clearly against the law).
    • Seller may not return the $0.12 million (above the true sale price of $1 million) to buyer
    This has happened a few times before and sellers, buyers, agents and even lawyers involved in such schemes have got into trouble.

  10. #10
    Join Date
    Feb 2009
    Location
    峨眉山
    Posts
    5,512

    Default

    Quote Originally Posted by jbond
    Thanks friends!

    I forgot that 80% is still possible - for buyers who are buying their first property.

    Thanks for reminding me.

    Even if the bank is willing to value the property higher, it is going to cause complications.

    Example:
    Seller and buyer agree on sale price of $1 million.

    Buyer (buying his 2nd or subsequent property) can get only $700,000 loan from bank (70%). However, he wants to get a higher loan quantum. So the seller and buyer agree that the sale price is, say $1.6 million (which of course if not true). Bank gives loan of 70% of $1.6 million = $1.12 million.

    Problems:
    • Bank is a willing party to circumvention of laws - no bank will do that.
    • Seller and Buyer are declaring a false sale price (which is clearly against the law).
    • Seller may not return the $0.12 million (above the true sale price of $1 million) to buyer
    This has happened a few times before and sellers, buyers, agents and even lawyers involved in such schemes have got into trouble.
    There is nothing against the law if seller and buyer are family, friends, relative etc and they deal with the difference separately in private, no? Question is what magnitude of diff between valuation and real market value makes it worthwhile to do that. Plus the bank loan does not come to you in one lump sum, ie it has to be managed by the lawyer and disbursed accordingly when the bank calls for it. Unless the lawyer is also family, partner in crime etc. . .

    Watch the 11pm ch8 drama and you will know how complicated and messy such 'family' things can get. I guess the main teaching point of that hundreds of hundreds episode drama is that Never Do Business With Family.

  11. #11
    Join Date
    Mar 2009
    Posts
    156

    Default

    Quote Originally Posted by jbond
    Thanks friends!

    I forgot that 80% is still possible - for buyers who are buying their first property.

    Thanks for reminding me.

    Even if the bank is willing to value the property higher, it is going to cause complications.

    Example:
    Seller and buyer agree on sale price of $1 million.

    Buyer (buying his 2nd or subsequent property) can get only $700,000 loan from bank (70%). However, he wants to get a higher loan quantum. So the seller and buyer agree that the sale price is, say $1.6 million (which of course if not true). Bank gives loan of 70% of $1.6 million = $1.12 million.

    Problems:
    • Bank is a willing party to circumvention of laws - no bank will do that.
    • Seller and Buyer are declaring a false sale price (which is clearly against the law).
    • Seller may not return the $0.12 million (above the true sale price of $1 million) to buyer
    This has happened a few times before and sellers, buyers, agents and even lawyers involved in such schemes have got into trouble.
    You forgot to mention the most important assumption in your above scenario. Are you saying that the valuer will value the property at S$1.6mil when the real market price is only S$1mil?

  12. #12
    Join Date
    Nov 2008
    Posts
    197

    Default Clarity

    Let us take a case study example a property, which recently attacts nearby similar property transaction at $1 mil.

    Scenario A:

    Banks / valuers take a slightly conservative view and value the property at $875k. And as per old rules loan available is 80% * 875k = $700k.

    This scenario was very common in the last year. Banks do not want clients to over stretch and kept valuations conservative.

    Scenario B:

    Banks / valuers take a realistic / optimistic view and value the property at $1mil. But as per new rules the second ppty purchases only allows for 70% loan which is 70% * 1 mil = 700k.

    So now what is the difference?

    My point is simply this. In the past the banks are overly conservative. Their valuations are below market rate, and most of the time for second ppty they anyway restricted loans to 70% very often. So they self regulated and the new ruling is not a big deal to most of them. They can chose to be less conservative and the loan quantum is not much different.

    If like me you have a few properties you will know. 80% was never the norm unless you really tried to justify. Else 70% or even 60% loan was the norm and the valuation did not match the realistic purchase price.

Similar Threads

  1. Maybank loan experience
    By TOKARA in forum Finance and Legal
    Replies: 0
    -: 08-11-16, 16:56
  2. Maybank KE speaks out on next possible CM
    By mcmlxxvi in forum Singapore Private Condominium Property Discussion and News
    Replies: 79
    -: 20-12-12, 21:07
  3. Is CPF really offering better retirement ?
    By Regulators in forum Coffeeshop Talk
    Replies: 17
    -: 18-11-12, 10:16
  4. Maybank starts 2 new home loan products
    By mr funny in forum Finance and Legal
    Replies: 0
    -: 21-04-11, 18:49
  5. Maybank launches two home-loan promotions
    By mr funny in forum Finance and Legal
    Replies: 0
    -: 06-09-08, 17:29

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •