Please help. Housing loan isue
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We couldn't get a HDB housing loan and Bank loan. We wanted to purchase a BTO 3-room flat but unable to make the full payment of $229000 that HDB requires. We only have $100000 on hand now including CPF. We have looked for our estate MP but there is no reply from them as they say the National Development Board have not reply them yet. We are able to pay the monthly installment from HDB. What we lack now is just the full amount that HDB wanted. We have waited for 3years for the flat yet now HDB don't release the key because we can't pay the full amount for the flat. Please advice us on what we can do to get our new house as fast as possible. Thanks in advance!
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Home loans harder to get with tighter rules
More applications being rejected and wait for approvals is longer: Analysts
Much of the longer approval process has to do with additional documents needed to verify a buyer's existing monthly debt repayments. ST FILE PHOTO
By MOK FEI FEI
HOME buyers have found it harder to obtain loans in the wake of tighter mortgage rules imposed last year.
Real estate players said buyers now have to wait longer for their loans to be approved and more are having their loan applications rejected, after the total debt servicing ratio (TDSR) framework was put in place in June by the Monetary Authority of Singapore (MAS).
Ms Christine Li, the head of research and consultancy at OrangeTee, told The Straits Times that only 12 potential buyers out of 80 were able to get their full desired loans for a property project launched last year after the TDSR was implemented.
Another property analyst disclosed that bankers have said loan rejection rates rose to as much as 20 to 25 per cent when the TDSR was implemented, where previously such rejections were rare.
"A lot of checks are now required and the MAS is asking the banks for clarifications," said the analyst, who declined to be named as the information is confidential. "It's making the banks very frustrated, it's making it tough on the buyers and it's making it difficult for agents to sell the units too," she added.
But some bankers and property consultants said the situation has recently improved as customers become more familiar with the process, now that the TDSR has been in place for some 10 months.
The TDSR limits a borrower's overall monthly debt repayment to no more than 60 per cent of his gross monthly income. That means home buyers with more existing debt - such as a car loan and credit card bills - have less room for taking out a mortgage.
Banks that spoke to The Straits Times largely declined to comment on the rejection rate or size of property loans, though they acknowledged that the loan approval process may take longer now.
OCBC's head of consumer credit risk management Joseph Wong said: "We have not seen a drop in the approval rate as customers will typically do a self-assessment before approaching the bank to apply for a home loan."
Mr Dwaipayan Sadhu, Standard Chartered's head of consumer transaction banking and mortgage in Singapore and South-east Asia, said: "While the loan approval process may be lengthier for those who do not have the necessary documents in place, the TDSR process has helped standardise practices across banks and helped ensure that customers stay within their repayment abilities in the longer term."
Much of the longer approval process has to do with the additional documents needed to verify the applicant's existing monthly debt repayments.
Borrowers may not always be aware of what papers they need for their loan approvals, such as their credit card statements.
Ms Chia Siew Cheng, the head of secured loans at United Overseas Bank (UOB), said: "The TDSR framework requires home buyers to submit additional documents which provide a more holistic view of their total debt obligation for their property purchase."
UOB has also come up with a checklist of some of the documents applicants should bring, highlighting the changes to make it easier for them.
Ms Linda Lee, the executive director for deposits and secured lending at DBS, said: "As long as the customer has submitted the required documents, the timeline for loan approval remains the same."
SLP International Property Consultants' head of research Nicholas Mak suggested that loan rejections have likely fallen by now. "If (home buyers) have been rejected once already, they would know how much (in loans) they are eligible for and will not ask for more than that without an increase in income," he said.
Top Of The News, The Straits Times, Monday, April 14 2014, Pg A3
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To M: I understand that, living in Singapore is getting harder as well. Do you have any suggestion on what I can do to obtain a loan and get my 3-room flat as soon as possible?
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Originally posted by Ja25:
We couldn't get a HDB housing loan and Bank loan. We wanted to purchase a BTO 3-room flat but unable to make the full payment of $229000 that HDB requires. We only have $100000 on hand now including CPF. We have looked for our estate MP but there is no reply from them as they say the National Development Board have not reply them yet. We are able to pay the monthly installment from HDB. What we lack now is just the full amount that HDB wanted. We have waited for 3years for the flat yet now HDB don't release the key because we can't pay the full amount for the flat. Please advice us on what we can do to get our new house as fast as possible. Thanks in advance!
Why you need to pay full payment of $229,000?
Isn't that the purpose of a loan?
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We sold our 4-room flat, so the HDB assumed that we have cash on hand thus ask us to pay the full amount for our 3-room BTO flat. Therefore, they don't give us housing loan.
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If I will you, I would have rent the flat out first instead of selling it and use it as an cash flow to get an new home cos ever since the cooling measure began, the gahment is already sending an clear message that HDB is mean for permanent stay, that why I always posted useful article in this forum cos they offered better advice than other's people's trolling crap here : http://sgforums.com/forums/3849/topics/482803
Anyway instead of HDB flat, why didn't you considered upgrade to EC or maybe bungalow? And these are the Singapore Mortage loan resources which I hoped it could be useful : http://www.smartloans.sg
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The problem is HDB rush us to sell our 4-room flat. So hastily we have to sell it. We don't have anything to mortgage and not enough cash on hand to purchase our flat as mention above. Now we can only seek for solution to get our flat...
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Unless you are currently not working(no offence), you could use CPF as another source of income to support your housing's cost. Have you previously apply for CPF Housing grant when your first time buy an HDB flat? And for your case, I think there is an scheme called 'Enhanced Contra Facility' (ECF) for people like you who want to buy second flat using your CPF : http://www.hdb.gov.sg/fi10/fi10322p.nsf/w/SellFlatBuyingYourNextFlat , didn't tell me HDB didn't approve your application for this scheme as well?
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I'm not eligible for the ECF because my husband declared bankruptcy. I read through your suggestion and I wanted to try the CPF top up grant. Do you know the estimated sum I will get if my top up grant is approve? And how do this scheme work? Thanks a lot.
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I think best get proper legal advice.