Housing Loan query

[C3P0]

Fellow forummers,
If I am buying a property, and the housing loan requires me to pay $5000 monthly installment (assumption).

How will the bank determine if my monthly income is sufficient to take up the loan? Is there a formula that banks use?
(I assume they will also take into account my other existing housing or car loans.)

Thanks in advance for advice.

 

[WHITENIGHT]

Re: Housing Loan query

Bro normally the bank use the gauge of 35% of yr salary (declared).
Yes they take yr car loan and other loan into consideration. And also yr payment on yr CC.
If u have certain amount of funds in yr bank, loan should not be a problem. (If yr salary does not qualify for the monthly payment.)
It all depends on yr relationship with the bank that u will be borrowing.

 

[C3P0]

Re: Housing Loan query

Bro normally the bank use the gauge of 35% of yr salary (declared).
Yes they take yr car loan and other loan into consideration. And also yr payment on yr CC.
If u have certain amount of funds in yr bank, loan should not be a problem. (If yr salary does not qualify for the monthly payment.)
It all depends on yr relationship with the bank that u will be borrowing.

Thanks bro for the input. That means, monthly salary must have $15k in order for bank to approve a loan with $5k monthly instalment...

Btw, what is CC?

 

[WHITENIGHT]

Re: Housing Loan query

Thanks bro for the input. That means, monthly salary must have $15k in order for bank to approve a loan $5k monthly instalment...

Btw, what is CC?

CC - Credit Card.
It can also be a combine salary between u and wife.
Again it depends on yr downpayment.
FYI now the banks will first look at Credit rating.(They will check with the credit bureau first) If it passes that the rest is just formality and yr relationship with the bank that u will be using.
Hope info is helpful for u.

Cheers.

 

[C3P0]

Re: Housing Loan query

CC - Credit Card.
It can also be a combine salary between u and wife.
Again it depends on yr downpayment.
FYI now the banks will first look at Credit rating.(They will check with the credit bureau first) If it passes that the rest is just formality and yr relationship with the bank that u will be using.
Hope info is helpful for u.

Cheers.

Heng, bo CC debt, ha ha.
The combine salary part I know, because my current property I use my own payslip not enough, bank ask me to add in my wife's pay. very malu :chinese:
Ok, i later pay $5 to see my credit rating. Should be ok
Thanks so much for the input!

 

[ktnpl]

Re: Housing Loan query

Based on MoneySense, total long term commitment should not exceed 35% but I think banks use 40%.

Not many pple will advise this but I recommend opting for maximum payment and shortest possible loan repayment period to reduce the cost of borrowing. Next, make lump sum payments periodically without reamortisation to further shorten the loan period. If you choose this strategy, make sure the agreement does not have penalties for early repayment. If yes, ask for the clause to be cancelled out.

A good banker should be able to give you the right advice.

 

[C3P0]

Re: Housing Loan query

Based on MoneySense, total long term commitment should not exceed 35% but I think banks use 40%.

Not many pple will advise this but I recommend opting for maximum payment and shortest possible loan repayment period to reduce the cost of borrowing. Next, make lump sum payments periodically without reamortisation to further shorten the loan period. If you choose this strategy, make sure the agreement does not have penalties for early repayment. If yes, ask for the clause to be cancelled out.

A good banker should be able to give you the right advice.

Thanks bro!

 

[C3P0]

Re: Housing Loan query

i found this, quite useful:
Home Loan Calculators

 

[peckhs]

Re: Housing Loan query

Ok, i later pay $5 to see my credit rating. Should be ok

just to let you know, the credit bureau does not provide you the same report as the bank's...
your $5 report is a very simplified version of what the banks will obtain from the bureau. the banks report are very much more comprehensive

 

[C3P0]

Re: Housing Loan query

just to let you know, the credit bureau does not provide you the same report as the bank's...
your $5 report is a very simplified version of what the banks will obtain from the bureau. the banks report are very much more comprehensive

Yup, was thinking of that when taking a puff, kind of figure it out that my report must be machiam simple one.

Btw, thought of extending my HDB loan tenor so that I can reduce the monthly instalment paid.

Then stick to my E46 instead of buying new car - so that monthly car instalment won't increase.

Then use my little remaining CPF to repay a bit of pte housing loan. Bingo, another reduction in monthly instalment amount.

And if economy good, must change job also, so that monthly salary increase.

If all done properly, should be able to get the new housing loan I wanted.

 

[ktnpl]

Re: Housing Loan query

i found this, quite useful:
Home Loan Calculators

No change in their policy... still based on 40% of gross income.

UOB is a good choice. StandChart offered the lowest rates on paper at that time but I decided to take my loan from UOB and it turned out to be the best deal over the life cycle of the loan

 

[C3P0]

Re: Housing Loan query

No change in their policy... still based on 40% of gross income.

UOB is a good choice. StandChart offered the lowest rates on paper at that time but I decided to take my loan from UOB and it turned out to be the best deal over the life cycle of the loan

Cool. I also compare here compare there, like buy vegetable like that, and end up with UOB.

But being banks, they all suck blood. The so called floating rate loan is a joke. But that's another topic. Next time then share my experience.

 

[SLK69]

Re: Housing Loan query

Nobody loan you, call me. - iScoupe say one

 

[joseph]

Re: Housing Loan query

Nobody loan you, call me. - iScoupe say one

i need 20k nia,can loan?

 

[C3P0]

Re: Housing Loan query

Nobody loan you, call me. - iScoupe say one

Gam dong....!! touched....

iscoupe will be guarantor. If i run away, you can chop his hands and kkj. guni say one.

 

[ktnpl]

Re: Housing Loan query

The so called floating rate loan is a joke. But that's another topic. Next time then share my experience.

I know. All our banks are like.

I did a Houdini muahaha

 

[iScoupe]

Re: Housing Loan query

mine still safer Maybank fixed 3 years 1.6% , 2.2% & 2.9% 4th see how kekekeke....
i think board rate or watever floating rotor rate they call will soon go up - i think only

Today UOB got fixed 2yr at 2.28% & 3rd year brembo floating rotor rate 3.75%

 

[phil]

Re: Housing Loan query

Robot, you want a 5k per month repayments loan for a house? You buying 10 million dollar house issit?

 

[iScoupe]

Re: Housing Loan query

Robot, you want a 5k per month repayments loan for a house? You buying 10 million dollar house issit?

he buying 10million sperm from me but took a loan from Bobby. Robot will repay his 5000 sperms a mth to bobby, tat wat robot can produce due to the older version robot software version 0.1.0

 

[C3P0]

Re: Housing Loan query

mine still safer Maybank fixed 3 years 1.6% , 2.2% & 2.9%
Sounds reasonable....

i think board rate or watever floating rotor rate they call will soon go up - i think only
yup yup, if the good sentiment continues, i/r is on the way up up up.

Today UOB got fixed 2yr at 2.28% & 3rd year brembo floating rotor rate 3.75% This is attractive if after 2 years it allows us to switch.

Robot, you want a 5k per month repayments loan for a house? You buying 10 million dollar house issit?

I used $5k as example only la. I am actually looking at $6k :nehnehhh:

Ok serious. Even if $5k per month instalment, for a 25 years loan, the loan amount will probably be around $1m only. How to get $10m house....not possible lah....