For those wanting to get a equity loan, it is very important to obtain high valuation and loan to value ratio from the banks. In this way, you can borrow maximum equity loan amount from banks on the private property and commercial. Equity loan is also known as term or cash out loan.
Based on the various applications my clients submitted, most already spent too much time shopping, and unable to get the equity loan they wish for. This is an area where we have been providing services for all properties in Singapore, UK, Australia and other countries. We know you want the maximum equity loan. We will:
- Understand your mortgage situation
- Determine if you are eligible for equity loan
- Source for highest valuations
- Obtain maximum possible equity loan
- Secure equity loan
- Source for cheapest legal fees
We have the banks that can borrow up to 80% LTV and their best rates. We even know how to reduce your monthly repayments for investment homes. If you own an EC (Executive Condominiums) in Singapore, term loans are not granted by every bank.
Do not assume that you can always obtain the maximum term loan quantum, if you think you have the best credit score, highest valuation, very high income, low DSR, etc. And now there is the TDSR guidelines that may impact your borrowing limits, especially for the second mortgage.
The loan amount is typically LTV less sum of (outstanding property loan, CPF principal, CPF accrued interest, any factor the bank may include such as secured overdraft).
Say that you have a fully paid property valued at $3 million, no CPF usage, no outstanding property loan and a bank reverted with 80% LTV (i.e. $2.4 million). It’s not common for a bank to lend you the full amount, which is a cool $2.4 million in cash!
For those with only 1 outstanding property loan
- Borrow up to 80% LTV of valuation, subjected to credit checks, TDSR etc
For those with more than 1 outstanding property loan
- Every bank can offer betwen 60% to 80% of valuation, as regulated by MAS. So the differentiating factors for the bank would be the other criteria such as MSR, DSR, your credit score, CPF usage, and of course, interest rates.
Check out the term loan mortgages for Singapore.
Contact us today for the best mortgage advice!
