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I have an existing condo valued at ~$1m. Am looking to move to another condo to be close to my son's school.

Will it be possible for me to still get 80% financing from bank for the new property if a friend of mine can provide me with an official "put option" contract where I can choose to exercise my option to sell my existing place to him within 6 months at ~$900k (in case I really couldn't find any other buyer for my existing property above $900k in the next 6 mths)?
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6 Answers

YT Tan (陈永达)
Good morning,

you can obtain max 80% bank loan if you dont have any outstanding loan which means fully paid or sell off existing unit (issue option to buyer).

Seller will grant option to purchase to buyer when price is agreed and buyer will exercise it within 2 weeks if okay to proceed further.

Thus i dont know what do you meant by a buyer grant an option to seller and a seller is the one exercising option to sell a place.

Perhaps you want to ring me up so we can explore your options.

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Hi,

Its not sufficient as property is not considered sold. You need to produce an exercised OTP to the bank at point of loan application, otherwise its considered you still have outstanding loan hence you can't get 80% max loan.

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.

Warm Regards,
Ivan Ng ERA ASAP
(ASk Anything Property)
Proactive. Sincerity. Feedback.
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Our unit comes with its challenges but Ivan remained positive and had no qualms committing to our plans right from the start. It took only 6 weeks of aggressive marketing for him to secure a good offer which was a pleasant surprise in the end.

Ivan was always responsive and we had no worries to pass him the house keys. The whole process was transparent and hassle free, and he was always thinking from our point of view on how to make life easier for the client. He is a committed professional and has fast execution, so we felt assured that things are done well and we can entrust the sale process entirely to him.

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Thanks Ivan! :) Read More
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Your friend will need to exercise the Option To Purchase before you are eligible to apply for the bridging loan for full 80% loan for your next purchase.

You may wish to restructure the entire sales and purchase procedure to have it work according to your plans. Let's discuss further.

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Dear Sir/Mdm,

Your friend will need to exercise the option before you will be eligible to obtain a 80% loan for the next property. This is to say that your friend will be legally bound to purchase the property once the option is exercised and he or she will need to pay the stamp duty within 2 weeks of exercise. This arrangement may not be the best if you wish to obtain an 80% loan as there may be complications later down the road.

One approach that some of my clients in a similar situation as yourself is to decouple the property instead. Please feel free to contact me so that I can understand your situation better and provide you with further assistance!

Regards,
Nick Tan
(M) +65 9644 4854 
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“We are very grateful to Nick for his extensive marketing efforts. With his comprehensive marketing plan, he helped us to achieve a record selling price within 2 weeks of listing our property for sale! We highly recommend his service to anyone who is keen to sell their properties.”
Mr & Mrs Wong (Property Seller)

“Nick has conducted himself ethically and professionally when handling the sales of our property. Thanks to his patience and perseverance, we managed to secure a sales price beyond our expectations.
We are very happy and satisfied with his services and will definitely recommend him to our friends and family in the future.”
Mr & Mrs Tan (Seller of Inter-Terrace House)

“Nick is a responsible, efficient and excellent salesperson. He has very good knowledge of the real estate market and I benefited a lot from his advice and sharing. He is extremely patient when guiding me through the buying process and I am happy to secure a dream house within my budget with his assistance. A highly recommended salesperson who made my house hunting journey a breeze.”
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Susana (Buyer)

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Mr and Mrs Chan (Sold and Bought a property through Nick) Read More
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Robbie Chen Chee Howe
Hi,

You will be able to get up to 80% loan for the new property if your current property is fully paid.

If it is not fully paid, you will have to get the buyer exercised the OTP before any banks can lend you up to 80%.

Should you need any further assistance in matters relating to property, please contact me at my mobile 9748 6305 . I will be happy to assess and share with you the possibilities for you in the current market.

Thank you.

Best regards,
Robbie Chen
 9748 6305 
PropNex Realty Read More
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Joanne Chia 谢诗琳
Good day Sir / madam .

As per your suggestion of " put option by a friend " , you will have to pay a very hefty ABSD Since it is deemed as buying a 2nd property , regardless .

Whether you qualify for 80% loan will depends on the status of your 1st property being fully paid already , in addition also dependent on your TDSR total debt servicing ratio , generally speaking meaning your age , income and whatsoever debts if any .

Kindly contact me for a no-obligations chat for your property needs .

My charges are 1% commission for exclusive selling rights ( 1 sole agent only ) to your property , or 2% for open listing ( many agents ) .

Joanne chia
Chia_joanne@yahoo.com.sg
Hp 8333 3327  Read More
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