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For example, if you have a member of your household who is willing to help, you can increase your chance of being acceptable. What we need to be sure of is that you can make your payment in the near term. Mortgage bank needs a rating of the home you want to buy or remortgage. What is more, you can buy a home from a mortgage bank.
Thats because they are lending you Money (Mortgage) basing on the value of the real estate and they need to be sure that it is what it is said to be valueworthy. If, for any reasons, you do not maintain your payment, you can take possession of the real estate again and resell it to get your cash back.
Occasionally, the more time you spend applying, the more difficult it can get because creditors are informed about other uses you have made. Help us help you find the mortgage you are looking for! There is also a non-refundable registration cost of 75 to complete your resume once you are satisfied with our consultation.
You can repossess your home if you do not maintain your mortgage payments.
The MAS is conducting a general consultative process on "Housing Credit Rules": Mortgage Equity Withdrawals to meet Loan-to-Value thresholds and Merging Credits from Money Lenders.
The Monetary Authority of Singapore (the "MAS") invites submissions on the proposed measures in its consultative document "Rules on residential Property Loans" from 13 January 2011 to 14 February 2011. In the first instance, the MAS suggests that banks ('FIs') must meet the Loan-to-Value Thresholds ('LTVs') for Mortgage Equity Withdrawals ('MWLs') and must aggregate lending from money lenders used to finance housing purchase for LTV calculation.
Accompanying the consultative document is a modified version of the MAS Communication to be sent to banks, titled "Loans for Housing " (MAS 632), which reflects the changes made. Financial institutions can lend to non-purchasable debtors who are still secure on home ownership. Those mortgages comprise mortgage equity withdrawals ("MWLs"), i.e. mortgages guaranteed on the borrower's equity in a home.
The MAS, together with the Ministry of Finance and the Ministry of National Development, published a declaration on 13 January 2011 in which it announced actions to preserve a robust and viable Singapore real estate investment environment. Activities will apply from 14 January 2011 and will involve LTV thresholds of 60% and 50% respectively for home loan for buyers who are individual or non individual.
MAS suggests that financial institutions be required to meet the LTV limit for MVLs that are restricted to real estate but are not used to buy the real estate. Those thresholds shall be fixed at the same levels as the present LTV prudential thresholds for home loan purchases.
In the case where the borrower(s) are individual (s), an MWL on a home ownership together with the remaining amount of all loan lines guaranteed on that land is within an LTV of 80% if the Borrower has no pending loan line for the acquisition of another land or 60% if the Morrower has pending loan lines for the acquisition of another land.
If one or more of the debtors are not natural persons, an MWL on a home together with the remaining amount of all lending facility backed on that home is subjected to an LTV 50% limitation. See the following figure in the consultative document: "Under the assumption that the LTV threshold is 60% and that the Mortgagor already has a S$400, 000 pending home construction facility for a S$1 million home, the MWL that the Mortgagor may receive on such home is S$200,000 (60% LTV x S$1 million - S$400, 000 pending home construction facility).
MAS suggests clarifying that for the purposes of LTV calculation, financial intermediaries must combine the borrower's credits from any money lenders used to finance the acquisition of real estate. Bridge credits do not have to be aggregate for the calculation of the LTV. The same applies to the bridge of credits provided by financial intermediaries governed by the MAS and money lenders.
By the time the suggestions in the consultative document are finalised, the MAS anticipates that IFIs will restrict the granting of home loan guarantees to those that are in line with the political intention set out in the consultative document. Click here to download the consultative document from the MAS website www.mas.gov.sg.