Singapore takes new steps to cool housing market

[carbuncle]

Thanks .



But the relative managed to secure a ahousing loan and not other type of loan?
Will the bank give you a housing loan if the house is not under your name?

pure hardcore unadulterated housing loan of 700-800k

and why not?
the collateral is the property
not you

[buttercarp]

pure hardcore unadulterated housing loan of 700-800k

Wow, means can.
I did not know the bank will give housing loan even if the house is not under the borrower's name!

[carbuncle]

Wow, means can.
I did not know the bank will give housing loan even if the house is not under the borrower's name!

you learn something new everyday huh!!

[Secretariat]

Thanks .



But the relative managed to secure a housing loan and not other type of loan?
Will the bank give you a housing loan if the house is not under your name?

Will the insurance company allow you to buy a policy when the assured is not you or your family?

It is just an instrument...

[buttercarp]

you learn something new everyday huh!!

Yes, yes. Thanks!
Nowadays so busy..... learning new things from the great people here.
So it is like part time study and work at the same time!

[cnud]

Something not quite right here. You mean a property can have multiple loans? Serviced by different people?

Then confirm worse than sub-prime crisis!

[fclim]

If housing loan is under husband's name only, can the wife (who is joint tenant) and don't have any housing loan, take the full 80% LTV for another condo (assuming loan tenure is less than 30 years and ends before she is 65 years old)?
Any difference if she is a tenant in common instead?

I got this from IRAS:

"Financial institutions are required to conduct checks with HDB and with one or more credit bureaus on whether the buyer has an outstanding housing loan at the time of applying for a housing loan for the new property purchase. For joint buyers, if either buyer has an outstanding housing loan, the joint buyers will be considered as having an outstanding housing loan. "

Joint buyers here refers to both Joint tenants and Tenants in common i.e., anyone whose name is on the title deed.

With regards to whether banks will loan you if you are not the legal owner, the answer is, very unlikely. Banks will need to have some form of security in case the borrower defaults. They will require all the legal owners to execute and sign a Deed of Assignment for the property wherein they have the first mortgage charge over the property, ahead of even CPF Board.

[Secretariat]

I got this from IRAS:

"Financial institutions are required to conduct checks with HDB and with one or more credit bureaus on whether the buyer has an outstanding housing loan at the time of applying for a housing loan for the new property purchase. For joint buyers, if either buyer has an outstanding housing loan, the joint buyers will be considered as having an outstanding housing loan. "

Joint buyers here refers to both Joint tenants and Tenants in common i.e., anyone whose name is on the title deed.

With regards to whether banks will loan you if you are not the legal owner, the answer is, very unlikely. Banks will need to have some form of security in case the borrower defaults. They will require all the legal owners to execute and sign a Deed of Assignment for the property wherein they have the first mortgage charge over the property, ahead of even CPF Board.

Of course...

So in Buttercarp's example, when the wife is buying alone, where got joint buyers?

[Secretariat]

Something not quite right here. You mean a property can have multiple loans? Serviced by different people?

Then confirm worse than sub-prime crisis!

One loan la...the financing bank will lodge the caveat mah? If other banks cannot lodge a caveat, how to issue a loan?

One loan can be serviced by more than one person mah? A group of friends cannot buy a single property together?

[buttercarp]

I got this from IRAS:

"Financial institutions are required to conduct checks with HDB and with one or more credit bureaus on whether the buyer has an outstanding housing loan at the time of applying for a housing loan for the new property purchase. For joint buyers, if either buyer has an outstanding housing loan, the joint buyers will be considered as having an outstanding housing loan. "

Joint buyers here refers to both Joint tenants and Tenants in common i.e., anyone whose name is on the title deed.

With regards to whether banks will loan you if you are not the legal owner, the answer is, very unlikely. Banks will need to have some form of security in case the borrower defaults. They will require all the legal owners to execute and sign a Deed of Assignment for the property wherein they have the first mortgage charge over the property, ahead of even CPF Board.

So this is very clear now.
You got it from this website :
http://www.iras.gov.sg/irasHome/page03a_ektid10700.aspx
Thanks fclim.

The reason why I ask is because I saw this reply from a housing agent on this website :
http://www.propertyguru.com.sg/quest...cash-by-me-and

That means his answer is only partially correct.
Only if the wife's name is not in the title deed, then she can obtain the 80% loan.
Answer Posted on Jul 6, 2012
Hi Lyn,

In whose name is the mortgage loan under? If its under your spouse's name only, yes you will be able to get 80% bank loan.

But if your name is included in the mortgage loan for your current condo, then you will only be able to get up to 60% bank loan. Therefore the only way to get around it is to fully paid up to mortgage loan OR to refinance the mortgage for your condo and only put one name under the loan.

Some other fees will include Stamp Duty, Legal Fee for your next property purchase. As for how much you will need, it will depend on the size of the house, location and age of the property. Maybe if you state some of your requirements, I can advise you further

If you have any other queries, feel free to ask

Rgds
ZhiWei
..........................

[carbuncle]

So this is very clear now.
You got it from this website :
http://www.iras.gov.sg/irasHome/page03a_ektid10700.aspx
Thanks fclim.

The reason why I ask is because I saw this reply from a housing agent on this website :
http://www.propertyguru.com.sg/quest...cash-by-me-and

That means his answer is only partially correct.
Only if the wife's name is not in the title deed, then she can obtain the 80% loan.
Answer Posted on Jul 6, 2012
Hi Lyn,

In whose name is the mortgage loan under? If its under your spouse's name only, yes you will be able to get 80% bank loan.

But if your name is included in the mortgage loan for your current condo, then you will only be able to get up to 60% bank loan. Therefore the only way to get around it is to fully paid up to mortgage loan OR to refinance the mortgage for your condo and only put one name under the loan.

Some other fees will include Stamp Duty, Legal Fee for your next property purchase. As for how much you will need, it will depend on the size of the house, location and age of the property. Maybe if you state some of your requirements, I can advise you further

If you have any other queries, feel free to ask

Rgds
ZhiWei
..........................

aiya sister zeewee do better tcss with us here than go propguru give half baked advice la.... keke

[Laguna]

大家一起发
买金又买银
买屋又买地
钞票当废纸
日日在贬值
物价日日涨
大家一起冲
赢个满江红

[buttercarp]

aiya sister zeewee do better tcss with us here than go propguru give half baked advice la.... keke

You are right..... here is better for advice. Got gurus to help, got siao people for entertaintment.
I just happen to click on that website and saw the advice and I got so confused.

[cnud]

One loan la...the financing bank will lodge the caveat mah? If other banks cannot lodge a caveat, how to issue a loan?

One loan can be serviced by more than one person mah? A group of friends cannot buy a single property together?

But this same group of friends must be owners too rite?

[Secretariat]

But this same group of friends must be owners too rite?

Yes. There is no good reason why a friend will want to pay without a stake in the property right?

[maisonjai]

Home Loan Refinancing: Have MAS Rulings Confused Some Banks?
By Timothy Kua in Featured Post, Home Loans |*Oct 31, 2012

If you’ve just tried to refinance your home loan, you may be feeling confused. Different banks may have given different answers to your refinancing questions. It’s not their fault: The recent MAS rulings have gotten the banks puzzled. In this article, we’ll examine the point of contention: How is the maximum loan tenure calculated when refinancing home loans? Disclaimer: This article is based on the current situation as of October 2012.

A Review of the MAS Ruling

For those of you who missed it, we examined the new ruling in a previous article. This is a quick recap:
For Singapore home loans, there is now:

(1) A maximum loan tenure of 35 years.
(2) a 65 year old retirement age limit, and
(3) a penalty for loan packages stretching between 31 to 35 years

All 3 conditions apply to new home purchases while only restriction (1) applies to refinancing cases. Breaking any one of the applicable restrictions will result in a lower loan percentage (if it’s your first home loan, instead of an 80% loan, it will be reduced to 60%; if you have an existing home loan, instead of 60%, it will be reduced to 40%). This is a further breakdown of the restrictions:

(1) 35 Year Cap on Home Loans (Applies to Refinancing)
No home loan can exceed 35 years. This is a non-negotiable cap on all loan packages. This also applies to refinancing.

Example: Say you took up a 40 year loan package from Bank A, and have been servicing it for 7 years. When you refinance into Bank B, the new maximum tenure for your new loan package is not 33 years but rather, 28 years (35 minus 7). Remember that for refinancing, you can cross the 65 year retirement age limit or the 30 year loan tenure limit without incurring any penalty. Banks however will still set a “max age” that you can service the loan till (typically 70 or 75 years of age).

(2) 65 Year Old Retirement Age Limit (Does NOT Apply to Refinancing)
If the borrower would be older than 65 when the loan ends, the bank can only finance 60% of the home’s cost.

If the borrower would be older than 65 and has an outstanding home loan, the bank can only finance 40% of the home’s cost.
This only applies to new home loans, and not refinancing cases.

Example: Say you are 60 years old, are currently servicing another home loan, and wish to purchase your second property for investment purposes. The maximum loan tenure any bank will grant you to obtain a 60% loan-to-value is 5 years (65 minus 60). Should you choose to take a longer loan period, the loan-to-value will be reduced to 40%. Again, banks have a maximum age limit of 70 or 75 years which means, the longest you can stretch you loan is 15 years (75 minus 60). In this case, taking a 15 year loan tenure (absolute maximum) will result in an loan-to-value of 40%.

(3) 30 Year Limit on Loan Tenure (Does NOT Apply to Refinancing)
If the loan tenure is between 31 to 35 years,*regardless of the borrower’s age, the bank can only finance 60% of the home’s cost.

If the loan tenure is between 31 to 35 years, and there is an outstanding home loan, the bank can only finance 40% of the home’s cost. Again, this is regardless of the borrower’s age.

This only applies to new home loans, and not refinancing cases.

Simple Enough?

So far new home purchases have been pretty straight forward. The same cannot be said for refinancing cases. Check out our real-life case studies below, where things start to get messy and confusing. In the following example, different banks will give you two different interpretations of the rulings for refinancing:

Refinancing Interpretation 1

Let’s say I took a home loan 2 years ago, before the ruling came into effect.
I was *48 years old, and took a home loan with Bank A. MAS’s age restriction didn’t exist back then, and Bank A had an age limit of 75 years.
As such, I could choose a maximum loan tenure of 27 years (75 minus 48).

Fast forward to today, and I have been paying Bank A’s loan for 2 years (hence my remaining loan tenure is 25 years). Now I want to refinance into Bank B to enjoy better interest rates, which has a 70 year age limit.
Question: If I refinance into Bank B, what is the maximum loan tenure I can get?

Answer: In most cases, Bank B would calculate it as 70 (maximum age limit) minus 50 (my current age), to get a maximum loan tenure of 20 years.
The new rulings don’t have any relevance to my refinancing.

Yes, I may have crossed the age limit. But the age limit only applies to new loans, not refinancing cases. And even including the 2 years I spent with Bank A, the total loan tenure would be 22 years (20 plus 2), which is well within the 35 year cap.

For the majority of banks, this is the method used. At MoneySmart, we also think this makes sense. However, a minority of banks will give you another answer:

Refinancing Interpretation 2

As before, say I take a home loan from Bank A (at age 48), and service it for 2 years. Then I try to refinance into Bank B, expecting to get a maximum loan tenure of 20 years.

But if Bank B is*amongst*a minority of banks, they may prevent me from taking a 20 year loan. They would argue that my maximum loan tenure should be 18 years. The interpretation is as follows:

70 years (age limit) minus 50 years (my current age) = 20 years. However, I have previously serviced a loan with Bank A for 2 years. These 2 years have to be deducted from my new loan package, giving me a maximum loan tenure of 18 years.

These banks interpret the new MAS rulings as “what loan tenure you qualify for less the years already spent servicing it”. But as you can see from our summary of the rulings, this doesn’t make sense.*Maximum tenure of 20 years would be well within the new ruling’s 35 year limit, and age is not a factor at all. The client in this case is also not extending his loan tenure (in fact the loan tenure is already being cut from 25 years (original remaining loan tenure) to 20 years (should the loan be refinanced). Should the government be afraid of such a property-owner profile and deem such cases as “over-leveraging”? Obviously not.

We have made repeated calls to every bank, and it’s a minority that interpret the new rulings this way. When pressed, these banks will only state they are “awaiting clarification” from MAS. Based on that response, we believe that some banks are confused about restriction (3) – the 35 year limit.

But I Need to Refinance!

In summary, if you’re trying to refinance your home loan, don’t be surprised if you come across different banks giving you different maximum loan tenures. You can either choose to wait till the banks receive clarification and sort it out, or visit loan comparison sites like SmartLoans.sg, where a mortgage specialist can sort this out for you and determine your best refinancing options.

[wind30]

http://forums.condosingapore.com/sho...923#post325923

Why some cm threads stay here for long time while others get banished to financing forum?

Confused

[Laguna]

Chinese investors flocking to Malaysia


http://sg.news.yahoo.com/chinese-inv...080003764.html

[radha08]

Chinese investors flocking to Malaysia


http://sg.news.yahoo.com/chinese-inv...080003764.html

let them get robbed at knife-point then they will flock to spore..

[Kanarazu]

let them get robbed at knife-point then they will flock to spore..

Chinese has a saying called 拔刀相助。

[radha08]

Chinese has a saying called 拔刀相助。

let me guess...it means show a man a knife and he will run for his life.......sorry me nono chinese

[bakasa2002]

let them get robbed at knife-point then they will flock to spore..

Maybe they will be the one robbing the msians. ;P

[radha08]

Maybe they will be the one robbing the msians. ;P

haha...maybe

[Allthepies]

let me guess...it means show a man a knife and he will run for his life.......sorry me nono chinese

It should be lend a helping hand

[focus]

let them get robbed at knife-point then they will flock to spore..

you would be thankful if the chinese never robbed the robbers at knife-point..lol..

Who can makan chinese except the chinese..

You go read those scary stories of nonchanlant in human lifes in china..and you know human lives is a commodity to them.

Disclaimer : Over-generalisation... :O

[carbuncle]

It should be lend a helping hand

Ya lor... Help by reducing their burden by relieving them of their personal effects lol