soyabean 0 Report post Posted October 27, 2011 Hi.If a rebuilding cost is able to enhance the values of a house, would the bank be willing to lend more?I need 900k to rebuild. Is there anywhere to borrow this amount? Share this post Link to post Share on other sites
renoseeker 0 Report post Posted October 27, 2011 Hi.If a rebuilding cost is able to enhance the values of a house, would the bank be willing to lend more?I need 900k to rebuild. Is there anywhere to borrow this amount?From what I know, I don't believe so.RHB, OCBC and Maybank allows for renovation loan up to 6 times your monthly salary or $30,000, whichever is lower. If you want to borrow so much money, then a renovation loan would not be enough for you. In that case, then the bank most likely will ask for collateral, maybe your house in this case. Then, it depends on your house value already. I am guessing that if you are going to spend 900k to rebuild, your house value should be around 3M and above?But don't take my word for it. Each bank got their own policy. Best is to call and ask your bank. Share this post Link to post Share on other sites
Lauer 15 Report post Posted October 27, 2011 (edited) Hi.If a rebuilding cost is able to enhance the values of a house, would the bank be willing to lend more?I need 900k to rebuild. Is there anywhere to borrow this amount?Dear Soyabean,If you are speaking of rebuilding a house (literally, as in increasing the GFA of the house), then any bank would lend subject to normal due diligence such as outstanding lease (if it is a leasehold property), loans-to-income ratio of the borrower(s) etc etc. There are plenty of resources on this under the "Private Property" thread.A bank could lend up to 80% of the cost of rebuilding a house, unless you have other properties mortgaged, subject to the bank valuer's opinion of the value of the house rebuilt. You would have to finance this construction loan using cash until TOP is obtained, after which the loan could be converted to a normal housing loan. The differences between the two are the method of repayment, the loan's tenure and interest rate.Cheers! Edited October 27, 2011 by Lauer Share this post Link to post Share on other sites
soyabean 0 Report post Posted October 29, 2011 Dear Soyabean,If you are speaking of rebuilding a house (literally, as in increasing the GFA of the house), then any bank would lend subject to normal due diligence such as outstanding lease (if it is a leasehold property), loans-to-income ratio of the borrower(s) etc etc. There are plenty of resources on this under the "Private Property" thread.A bank could lend up to 80% of the cost of rebuilding a house, unless you have other properties mortgaged, subject to the bank valuer's opinion of the value of the house rebuilt. You would have to finance this construction loan using cash until TOP is obtained, after which the loan could be converted to a normal housing loan. The differences between the two are the method of repayment, the loan's tenure and interest rate.Cheers!Yes. I'm talking about rebuilding a house to increase the GFA. So does anyone has recommendation for a bank? I search the internet but all those onlines are talking about loan to buy a house or loan to do simple reno. Nothing on loan to rebuild a house. Care to share any links? Thanks! Share this post Link to post Share on other sites
Lauer 15 Report post Posted October 29, 2011 Yes. I'm talking about rebuilding a house to increase the GFA. So does anyone has recommendation for a bank? I search the internet but all those onlines are talking about loan to buy a house or loan to do simple reno. Nothing on loan to rebuild a house. Care to share any links? Thanks!Dear Soyabean,Well, the landed housing stock here is probably less than 3% of the entire? Less the numbers from 99-years leasehold property, those already rebuilt to 2 or more storeys, those of strata-titled, one could imagine that the balance is a really low number. From the bank perspective, it probably couldn't be bothered putting on detailed online information. Moreover, the process of financing a landed house with the intent of rebuilding is not so straight-forward than compared with, say financing a condo purchase, so a more intimate (?) discussion with a banking officer is called for.If you don't have a particular unit in mind, are in a more exploratory state, then just call the bank's hotline for enquiry. It would assign a RO to contact you to address your questions. Best is to call your own bank for the initial enquiry, and proceed to another bank to understand the competitive detail.If you have a particular unit in mind, then your housing agent is the best person to link you up with the banks.Other forumers could share their experiences also?Cheers! Share this post Link to post Share on other sites
