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Home Financing

Asked by Ngor 28 Jul 2012

Is it a hard 60% limit on the loan that a buyer can take if he already owned a private property? If he didn't take 80% loan on the 1st property, can he get higher than 60% for the 2nd loan? Assuming that he already purchased a $1M condo and has a 70% mortgage loan. If he wants to buy another $1M condo, how much loan can he take? Also assuming that his family income "qualifies" for the bank loan.

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3 Answers

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Geryl Lim · Answer 1 · 2012-07-28T17:38:10+08:00

Geryl Lim

Replied 28 Jul 2012

Hi Ngor,

The regulation is there for a reason. If you have an outstanding housing loan, you will only be eligible for up to 60% loan for your next purchase subjective to the offer price against the value.

Regards,
Geryl LIM
Real Estate Consultant
CEA Reg R014783H
Mobile: +65-81577565
Email: lim.geryl@yahoo.com.sg Read More

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Mike Lim · Answer 2 · 2012-07-28T18:05:06+08:00

Mike Lim

Replied 28 Jul 2012

Evening Ngor,

All banks work in accordance to MAS regulation. Since you have an existing mortgage loan, the next mortgage loan will only be 60% of bank valuation or purchase price, whichever is lower. Thus the sums are simple: 60% of $1mil (assuming it's the valuation price), you will get $600k.

The best solution is to contact a banker to work things out for you. Getting the right person to do the job will help path your way to success.

FYI
Mike Lim
96929209
ERA Read More