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Does equity loan count as 1st housing loan?

Currently have 400K cash, OA 550K and 17K combined gross income per month. Thinking of buying a 1m condo, fully paid up using OA and cash, then took out equity loan and buy 2nd condo.

Any guru can advise if advisable to buy 2 properties? Or too stretch financially?
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5 Answers

Ivan Ng
Replied
Hi,

I think it may be better to buy properties individually on you and your partner's name. Whether its a stretch depends on your job outlook, lifestyle and your monthly expenses as well. May I have more info and requirements about your plans so to make better recommendations? Thanks and look forward to value-add to your housing plans.

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Robbie Chen Chee Howe
Replied
Hi,

I understand that you are looking at the option of purchasing 2 condos together with your spouse. But, may I know what are your objectives of taking an equity term loan for the second property? Do you know that you will incur ABSD on your second property? Is there really a need for you to fully pay for the first $1m condo?

Have you thought that there might be a better option out there? An option where it can save you the ABSD on your 2nd property purchase?

Do get in touch with me at my mobile 9748 6305  . I would like to understand more before I can share with you how you can have more savings from your planned 2 properties purchase.

Thank you.

Best regards,
Robbie Chen
 9748 6305 
PropNex Realty Read More
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  • BB
    Replied
    Firstly, wife insist properties to be both name. If took two loan, it will be 80 and 50%. Then the cash upfront for 2nd property would be huge. If equity loan is not counted as housing loan, then can max 80% for 2nd property. That's why need to know if it counted as housing loan.
Geryl Lim
Replied
Hi Bryan,

From my understanding, equity loan does constitute to housing loan from most of the banks.

Are you looking for measures to save up on Additional Buyer's Stamp Duty in putting up a 2nd name for the 2nd property with the equity loan taken out from the 1st property? Having said that, I also understand that equity loan is subjected to TDSR and age considerations. Do speak to a banker for more precise information. Perhaps I can work out an alternative proposal for you if I know more of your plans.

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  • BB
    Replied
    Yes. Looking at way to save on ABSD + max loan period.

    If equity loan = housing loan, that means the max we can loan is 50% of the 2nd property property value.
GAN ENG JOO ONASSIS
Replied
Dear Buyer,

Re: Today’s SG Professional Choice- SGAgent.com & SGRealtor.com

For equity loan, will only apply upon your existing property transaction completed. Too stretch based on your contents written, and too rush also.

U need to be prudent and pace by pace to settle everything especially for property. You seem to lack out of the 20% of the upfront, not to mention the buyer stamp duties of 3% and the Additional Buyer Stamp duties from 7% onwards. Will recommend u to purchase 1 property first, and plan later for another property :)

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  • BB
    Replied
    Are you suggesting to buy 1 property. Then work and save for several yrs before planning for 2nd property? Since I have the resources to paid 1m for 1st property, wouldn't it adviseable to get a 2nd property and if it can be rent out, it will help to pay the mortgage by itself?
Radhika Prakash
Replied
Dear Sir/Ma’am:

We will be glad to assist you. Kindly write to us on realproperty63@yahoo.com.sg or call us on 93380071  .

Kind Regards,
Radhika Prakash
Edmund Tie and Company
 93380071  Read More
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