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Mark, your RIGHT choice
Propnex Read More

Hi,

Congratulations on your career progression!

The good news is that banks do not necessarily average your income over the past few years simply because you have recently changed careers.

However, how much of your current income the bank recognises will depend on the nature and consistency of your earnings.

If your $115,000 annual income is mainly a fixed monthly salary, the bank may be able to assess your current salary based on your employment contract, recent payslips, CPF contributions and salary crediting records.

However, if a significant portion comes from commissions, bonuses or other variable income, the bank may require a longer income history and apply a reduction when calculating your borrowing capacity.

Since your income has increased from $72,000 to approximately $115,000, the difference could be quite significant when determining your maximum housing loan.

Your outstanding car loan will also be considered under the Total Debt Servicing Ratio (TDSR), so it is important to factor in your existing monthly repayments.

I would suggest obtaining assessments from more than one bank, particularly given your recent career change. Different banks may assess your supporting income documents differently, although they must comply with the same regulatory requirements.

May I know whether your new income is entirely fixed salary or includes variable components? Also, how long have you been in your new role?

Are you currently looking at HDB or private property?

Lastly, have you engaged a property agent to assist with your purchase? If so, has your agent helped coordinate your financing assessment and establish a realistic purchasing budget?

I would be happy to help you understand your purchasing options based on your current financial position.

Geryl Lim
 9278 7772  Read More

Hi, first confirm which country the mortgage is in. A credit score of 740 may refer to a different credit-scoring system, so I would not apply Singapore lending assumptions without checking.

For a Singapore loan, the lender will distinguish documented fixed salary from bonuses, commission, projected income or self-employment earnings. A forecast of $115k is not automatically treated the same as an established fixed salary. Your new role, probation status, income records and car repayment will matter.

Send the lender your employment contract, recent payslips and the income documents it requests through its secure channel. Ask it to confirm the qualifying income used, whether variable income is reduced, and whether further history is required. There is no single rule that every bank simply averages the same number of years for every applicant.

Silas Tan | Huttons | TRIBE
Free property guides and calculators: https://tribesg.com Read More