DBS Assetline (Term Loan)

[wildfaye29]

Hi, I would like to know how much can be borrowed from the bank on a fully paid up property.

I had taken up such a loan from DBS last year and understand that it is based on the following formula:

Example:
Property is not under financing (fully paid)
Estimated value of property: 2mil
LTV 60% (not 80% due to other commitments)
CPF utilised (include accrued interest): 600k

Amount that may be borrowed: 2mil @ 60% = 1.2mil
Amount that may be disbursed: 1.2mil - 600k = 600k

Is this the correct method?
--------------------------
I was speaking to another banker from DBS recently and understand that the method described above is incorrect?

Was informed the following:

Example:
Property is not under financing (fully paid)
Estimated value of property: 2mil
LTV 60% (not 80% due to other commitments)
CPF utilised (include accrued interest): 600k

Amount that may be borrowed: 2mil - 600k = 1.4mil
Amount that may be disbursed: 1.4 @ 60% = 840k

This means I may borrow 840k instead of 600k.

Which is correct?
-----------------------
Any help appreciated! Banker's views welcome!

Thank you all!

[auroraborealis]

My banker used the second calculation method too, i.e. (property value less CPF used) * LTV%

[lajia]

At what interest rate? And tenure?

[wildfaye29]

My banker used the second calculation method too, i.e. (property value less CPF used) * LTV%

Thanks for the info.

Mabe I have been misled or I misunderstood the loan specialist from which I got the loan from. He, however, was a very off and imho, lousy, not good at answering queries and never explains properly. He has left DBS actually, mabe its a good thing for me. LOL.

The new loan specialist whom i spoke to recently seems very on the ball and eager to answer my queries. Hopefully, my subsequent term loan will work out fine! Haha!

Thanks again mate!

[wildfaye29]

At what interest rate? And tenure?

Got the following packages from the loan specialist tdy:


3 years fixed rate – 1.38% (With My Protector Mortgage insurance sign up)
3 years fixed rate – 1.48% (Without My Protector Mortgage insurance sign up)
5 years fixed rate – 1.50% (With My Protector Mortgage insurance sign up)
DBS Mortgage 1+1 – 1.18% (With My Protector Mortgage insurance sign up)
DBS Mortgage 1+1 – 1.28% (Without My Protector Mortgage insurance sign up)
3M SIBOR + 0.88% with interest rate cap of 1.49% for first 3 years (With My Protector Mortgage insurance sign up)
3M SIBOR + 1.00% with interest rate cap of 1.49% for first 3 years (Without my Protector Mortgage insurance sign up)

Tenure? Prob based on your exisiting age and the bank's regulations.

[smallant]

Rates seems high as compared to new loan rates by DBS or other banks .. Suspect lots of near for u to neg down ... Actually no diff in term as to new prop loan, except u wana encase it so yr finianical position is much better & lower risk profile from bank ... Should translate into lower rates ... :-)

[wildfaye29]

Rates seems high as compared to new loan rates by DBS or other banks .. Suspect lots of near for u to neg down ... Actually no diff in term as to new prop loan, except u wana encase it so yr finianical position is much better & lower risk profile from bank ... Should translate into lower rates ... :-)

Really? wow, i tot they seemed pretty low!

Any other bank's packages u know on hand to enable me to do a comparison?

Thanks!

[DC33_2008]

What about after 3 years for these packages?

Got the following packages from the loan specialist tdy:


3 years fixed rate – 1.38% (With My Protector Mortgage insurance sign up)
3 years fixed rate – 1.48% (Without My Protector Mortgage insurance sign up)
5 years fixed rate – 1.50% (With My Protector Mortgage insurance sign up)
DBS Mortgage 1+1 – 1.18% (With My Protector Mortgage insurance sign up)
DBS Mortgage 1+1 – 1.28% (Without My Protector Mortgage insurance sign up)
3M SIBOR + 0.88% with interest rate cap of 1.49% for first 3 years (With My Protector Mortgage insurance sign up)
3M SIBOR + 1.00% with interest rate cap of 1.49% for first 3 years (Without my Protector Mortgage insurance sign up)

Tenure? Prob based on your exisiting age and the bank's regulations.

[CondoWE]

Really? wow, i tot they seemed pretty low!

Any other bank's packages u know on hand to enable me to do a comparison?

Thanks!

iirc, normally the interest rate for cash out loan is slightly higher than BUC unit.

[wildfaye29]

My banker used the second calculation method too, i.e. (property value less CPF used) * LTV%

Hi, u got a term loan from DBS?

May I know how soon did they process your Approval-in-principal?

[Laguna]

this is used by SCB
Property is not under financing (fully paid)
Estimated value of property: 2mil
LTV 60% (not 80% due to other commitments)
CPF utilised (include accrued interest): 600k

Amount that may be borrowed: 2mil @ 60% = 1.2mil
Amount that may be disbursed: 1.2mil - 600k = 600k

[auroraborealis]

Mine was with UOB last yr; think took less then 2 weeks

Hi, u got a term loan from DBS?

May I know how soon did they process your Approval-in-principal?

[wildfaye29]

this is used by SCB
Property is not under financing (fully paid)
Estimated value of property: 2mil
LTV 60% (not 80% due to other commitments)
CPF utilised (include accrued interest): 600k

Amount that may be borrowed: 2mil @ 60% = 1.2mil
Amount that may be disbursed: 1.2mil - 600k = 600k

Thanks for info! I guess diff banks used diff methods!

[wildfaye29]

Mine was with UOB last yr; think took less then 2 weeks

I have submitted to DBS for approval-in-principal on tues. I hope they come back fast, else I can't proceed with anything!

[leesg123]

I have submitted to DBS for approval-in-principal on tues. I hope they come back fast, else I can't proceed with anything!

Do note that the money fom equity loan CANNOT be used for purchasing of properties in Singapore. They might recall the loan amount should they suspect or found out about it.

[Laguna]

Do note that the money fom equity loan CANNOT be used for purchasing of properties in Singapore. They might recall the loan amount should they suspect or found out about it.

yes, ur right
it is MAS regulation to the banks

[wildfaye29]

Hi, I have a new question on the term loan. Hope someone can enlighten me.

The property which the term loan is taken up is already fully paid up. This co-owned by my parents. Parents have an existing mortgage loan for a new property. Parents are borrowers of the term loan. Are the parents considered to have 2 existing mortgage loans?

Me, I am a co-borrower on this term loan. I do not have any existing property or mortgage loan at the moment. Is this considered as ONE mortgage loan in my name?

If I were to purchase another property, will I be subject to the LTV measures under CM7?

[silver023]

Yes, yes, yes. :

[newbie11]

Yes cos u r a borrower

[wildfaye29]

Thanks for the info guys!

[sunny88]

Mine was with UOB last yr; think took less then 2 weeks

How much was the legal fee?

[sunny88]

I have submitted to DBS for approval-in-principal on tues. I hope they come back fast, else I can't proceed with anything!

How much was your legal fee?

[newbie11]

depend on loan amt, type of prop, new/term loan

[leesg123]

How much was your legal fee?

Usually about $500

[wildfaye29]

Hi, I have a new question on the term loan. Hope someone can enlighten me.

The property which the term loan is taken up is already fully paid up. This co-owned by my parents. Parents have an existing mortgage loan for a new property. Parents are borrowers of the term loan. Are the parents considered to have 2 existing mortgage loans?

Me, I am a co-borrower on this term loan. I do not have any existing property or mortgage loan at the moment. Is this considered as ONE mortgage loan in my name?

If I were to purchase another property, will I be subject to the LTV measures under CM7?

Hi, i have a related question to the above.

Since i am co-borrower, can we re-finance the loan (aft lock in period) with another bank and release myself as a co-borrower?

Also, how soon before the end of the lock in period should i look for an alternative financer?

Thanks

[Mbanker]

Hi, i have a related question to the above.

Since i am co-borrower, can we re-finance the loan (aft lock in period) with another bank and release myself as a co-borrower?

Also, how soon before the end of the lock in period should i look for an alternative financer?

Thanks

Hi,

Yes you can, however the bank will usually have to assess if the other borrower's income can support the loan.

You will need to serve a 3 months notice for full redemption so you can work backwards.

Regards

[wildfaye29]

Thanks Mbanker!

[Mbanker]

Thanks Mbanker!

You are most welcome!