Considering Bank Loan Or 2nd Con Hdb Loan For Resale Hdb

[friends78 0]

Hi guys, need to know about the procedures for taking up Bank loan for HDB Resale flat. Wanted to take HDB loan but must refund 50% of the sale proceeds to service the HDB loan. Need the amt to pay for COV. Administrative wise, taking loan from HDB seems more easy...Get HLE approval, turn up for 1st and 2nd appt and sigh a few forms can liao... Taking up Bank loan seems complicated. I still need to go thru lawyers right? May I know the procedures for Bank loan? Thanks.

[bepgof 20]

Hi guys, need to know about the procedures for taking up Bank loan for HDB Resale flat. Wanted to take HDB loan but must refund 50% of the sale proceeds to service the HDB loan. Need the amt to pay for COV. Administrative wise, taking loan from HDB seems more easy...Get HLE approval, turn up for 1st and 2nd appt and sigh a few forms can liao... Taking up Bank loan seems complicated. I still need to go thru lawyers right? May I know the procedures for Bank loan? Thanks.

Simple.

1. Fing out banks who offer "cheapest" rate to yr needs.

2. Call, make appt with "consultant" - carry with u OTP, pay slip, IR8A, IC, cpf statment....

3. Wait for abt 1 wk fot the LO.

4. Bank will provide "legal sisidy" & assign a lawyer to u, once your application of credit facility is approved & signed.

5. Or, if you have a choice lawyer firm in mind, tell the bank you want that firm & confirm if that firm is in bank's panel (Usually yes)

6. See carefully the "legal subsidy" amount stateed in the doc. LS amount subjects to loan amount.

Before approach banks for cheapest rate, ask yourself:

- Expected loan amount

- Want to do partial payment within a year?

- If so, what's is minimum outstanding amount to keep for a year?

- Prefer fixed, sibor or sor pegged?

- Want to do full redemption within a year? Then look for no "lock in"

- With "lock in", rates usually slightly better than those without lock in.

Surf the net for better understanding the mortgage loan. Mortgage loan is a major decision in life. Good to have mortgage loan experience with banks, so next time when you venture into private property, you'll have more confidence.

Edited October 23, 2010 by bepgof

[friends78 0]

Simple.

1. Fing out banks who offer "cheapest" rate to yr needs.

2. Call, make appt with "consultant" - carry with u OTP, pay slip, IR8A, IC, cpf statment....

3. Wait for abt 1 wk fot the LO.

4. Bank will provide "legal sisidy" & assign a lawyer to u, once your application of credit facility is approved & signed.

5. Or, if you have a choice lawyer firm in mind, tell the bank you want that firm & confirm if that firm is in bank's panel (Usually yes)

6. See carefully the "legal subsidy" amount stateed in the doc. LS amount subjects to loan amount.

Before approach banks for cheapest rate, ask yourself:

- Expected loan amount

- Want to do partial payment within a year?

- If so, what's is minimum outstanding amount to keep for a year?

- Prefer fixed, sibor or sor pegged?

- Want to do full redemption within a year? Then look for no "lock in"

- With "lock in", rates usually slightly better than those without lock in.

Surf the net for better understanding the mortgage loan. Mortgage loan is a major decision in life. Good to have mortgage loan experience with banks, so next time when you venture into private property, you'll have more confidence.

Thanks so much! Was looking at Maybank Loan package or POSBank Home loan.

Maybank offers: 1st year:0.88%, 2nd Year:1.9%, 3rd year 2.3% and thereafter SRFR less 0.5% which is 3.25%

Don't intend to do full redemption. Loan amt is $300k for 25years. Sianz part is need to do refinance every 3 years cos the 4th year interest rate usually high...

Do I need to go to law firm once your application of credit facility is approved & signed? Legal subsidy is I need to pay first claim later or Bank settle for me? Sorry for the stupid questions cos really clueless on loan... Only want to take bank loan due to the refund of 50% cash proceeds as family needs the cash urgently.... Sigh...

[bepgof 20]

Thanks so much! Was looking at Maybank Loan package or POSBank Home loan.

Maybank offers: 1st year:0.88%, 2nd Year:1.9%, 3rd year 2.3% and thereafter SRFR less 0.5% which is 3.25%

Don't intend to do full redemption. Loan amt is $300k for 25years. Sianz part is need to do refinance every 3 years cos the 4th year interest rate usually high...

Do I need to go to law firm once your application of credit facility is approved & signed? Legal subsidy is I need to pay first claim later or Bank settle for me? Sorry for the stupid questions cos really clueless on loan... Only want to take bank loan due to the refund of 50% cash proceeds as family needs the cash urgently.... Sigh...

- See lawyer only after bank doc signed. Bank assigned....

- Banks pay "legal subsidy" to lawyer.

- Refinancing is much simpler process

- When given choices, why don't exercise choice and make a wise choice?

- When no choice, you'll really understand whatis called "sianz". Condemned = indifference to sentenced to death = no hope.

- The beginning is always "difficult", once kick starts, everything starts rolling.

Edited October 23, 2010 by bepgof

[friends78 0]

How much does the law firm charge? How wld I know whether the legal subsidy is enough to pay? Thanks again.

[bepgof 20]

How much does the law firm charge? How wld I know whether the legal subsidy is enough to pay? Thanks again.

Law firm charges to bank directly.

300K loan should be around $2000~$2500.

laywer will correspond between lawyers of:

- you bank and SLA to lodge caveat against yr property

- your bank & cpf board

- your bank & hdb, if full redemption is made.

Things you should be careful of:

- When interest rate revises, monthly instalment amount will be affected, you'll have to use singpass log on to cpf to make amount change.

- Most banks offer either sibor, or sor packages, not both together. eg UOB-sor, DBS-sibor

- You should study the nature of sibor and sor. 3-month, 6-month & 12-month moving average effects. See link below.

http://smp-consulting.com.sg/smpc/?option=...ticle&id=62

- Respective banks will say their are best offers.

- Personally, I prefer local banks and stick to one for life for loyalty. You'll understand and appreciate this when you get older.

- 300k @1% for 25yr, will be $1,131per month with $250 paying towards interest.

- 300K@2.6% (HDB) for 25yr, will be $1,361per month with $650 paying towards interest.

- Make judgement yourself.

- Likely sibor will slightly go up in coming months as countries's respective central banks likely raise their domestic rates to fight inflation.

- Worth spending time studying all these to make wise decision.

Edited October 23, 2010 by bepgof

[forgotten 1]

How much does the law firm charge? How wld I know whether the legal subsidy is enough to pay? Thanks again.

So far, I never hear of any bank that will give 100% legal subsidy for lawyer fee.

My case as example:

Loan from bank = 275K

Lawyer fee = $2800 (including $500 stamp fees)

Legal Subsidy from bank = 40% of $2800

I paid remaining 60% using my CPF.

Edited October 23, 2010 by forgotten

[friends78 0]

Hi

POSBank has offered me LO today, I have yet to sign up. Need to check, my valuation is 465k and I have requested for a loan of 300k. I intend to finance the remaining 165k with CPF and cash of cse. If I were to take up Bank loan, how wld HDB know how much CPF and how much cash I intend to use for the remaining 165k? Also my 2nd appt for my sale of the current flat and 1st appt of my purchase of the new flat is on the same day. Do u think the CPF will be in time to be credited in my CPF account for the deduction of the remaining 165k? Sorry for all the questions cos the bank officer doesn't seems to know the procedure. Thanks.

[chronograph 0]

For the case of bank loan, 5% of your valuation needs to be paid by cash, + your COV. (Did the bank officer info u about the 5% cash?)

Loan = 300k

1) Excluding your COV, 5% of 465k = 23.25k in cash.

2) 165k - 23.25k = $141.75k from CPF.

3) whatever left in CPF can be used to pay for stamp fee etc.

So, your bank appointed lawyer will help you compute the required amount, how much cash and how much from CPF.

Usually on first appointment of buying with bank loan, no deduction of CPF yet. Thus, you should have plenty of time for cash from sales of current flat to return back to CPF, you save on bridging loan.

Hi

POSBank has offered me LO today, I have yet to sign up. Need to check, my valuation is 465k and I have requested for a loan of 300k. I intend to finance the remaining 165k with CPF and cash of cse. If I were to take up Bank loan, how wld HDB know how much CPF and how much cash I intend to use for the remaining 165k? Also my 2nd appt for my sale of the current flat and 1st appt of my purchase of the new flat is on the same day. Do u think the CPF will be in time to be credited in my CPF account for the deduction of the remaining 165k? Sorry for all the questions cos the bank officer doesn't seems to know the procedure. Thanks.

Edited November 7, 2010 by chronograph

[friends78 0]

For the case of bank loan, 5% of your valuation needs to be paid by cash, + your COV. (Did the bank officer info u about the 5% cash?)

Loan = 300k

1) Excluding your COV, 5% of 465k = 23.25k in cash.

2) 165k - 23.25k = $141.75k from CPF.

3) whatever left in CPF can be used to pay for stamp fee etc.

So, your bank appointed lawyer will help you compute the required amount, how much cash and how much from CPF.

Usually on first appointment of buying with bank loan, no deduction of CPF yet. Thus, you should have plenty of time for cash from sales of current flat to return back to CPF, you save on bridging loan.

Thanks so much... I think what Bepgof said is true. Good to have mortage experience with the banks so next time I won't be so confused when venturing to private property. Thanks so much, guys. U guys are so much knowledgeable and helpful than HDB and Bank officers. I'm totally clueless with Bank loan.. and u guys by sharing views has indeed clear many of my doubts and make me more confident

[MortgagePremier 0]

Thanks so much... I think what Bepgof said is true. Good to have mortage experience with the banks so next time I won't be so confused when venturing to private property. Thanks so much, guys. U guys are so much knowledgeable and helpful than HDB and Bank officers. I'm totally clueless with Bank loan.. and u guys by sharing views has indeed clear many of my doubts and make me more confident

First appt, when you meet with the bank law firm, only need to pay stamp duty first. Remaining 5% cash and 15% CPF, around 2 weeks before 2nd appt.

After you sold your existing flat, your CPF proceeds will only be back in your CPF around 1 week later, fyi.

[joyousonline 0]

same here....since i am remarrying..i sold my flat and gng to buy a resale with new partner...now considering whether to go for 2nd concessionary hdb loan (considered 2nd timer even though partner is 1st timer) or bank loan...we are eligible for 2nd concessionary hdb loan...i understand that 50% of my cash proceeds will be plunged back into new flat...so if this cash is plunged back, i would hv contributed far more than partner... any advice? really in dilemma as the cash will be locked into the flat.

[chronograph 0]

Take bank loan. Bank loan rates are lower now compare to CPF @ 2.6%.

same here....since i am remarrying..i sold my flat and gng to buy a resale with new partner...now considering whether to go for 2nd concessionary hdb loan (considered 2nd timer even though partner is 1st timer) or bank loan...we are eligible for 2nd concessionary hdb loan...i understand that 50% of my cash proceeds will be plunged back into new flat...so if this cash is plunged back, i would hv contributed far more than partner... any advice? really in dilemma as the cash will be locked into the flat.

[Sam Lee Poh Huat 0]

Hi guys,

Just out of curiousity, any additional cost or lawyer fee incurred for refinancing in the 3 year onwards? Always thought HDB loan is the safest bet but bank interest rate is always a drooling factor.. Any mortgage insurance on the market like CPF HPS?

[therat 18]

as long as you use lawyer service , you need to pay.

For refinance, it is depend how much the bank give lawyer subsidy.

As lawyer subsidy is tie to how much you loan.

The less loan, less lawyer subsidy. You need to come out more cash for the lawyer fee