Can I Borrow For The 20% Downpayment For Property Purchase?

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Can I Borrow For The 20% Downpayment For Property Purchase?

  1. 1. Can I Borrow For The 20% Down payment For Property Purchase? Join us | Login for Financial Advisors | SMS us at +65 – 9782 - 8606 Home Loan | Commercial Loan | Refinance Loan | *Financial Planning | *Insurance
  2. 2. You can borrow money from your friends and relatives However The bank is not allowed to disburse money or any credit facility for the purchase of residential property (i.e. the 60% or 80%, whatever the Loan-to-value requirements is) if you cannot pay for the cash portion of the downpayment from your own source of funds. Join us | Login for Financial Advisors | SMS us at +65 – 9782 - 8606 Home Loan | Commercial Loan | Refinance Loan | *Financial Planning | *Insurance
  3. 3. And in another way, if you qualify for a 80% loan You have to fund the remaining 20% (minimum 5% cash and 15% CPF) of the purchase price yourself. Join us | Login for Financial Advisors | SMS us at +65 – 9782 - 8606 Home Loan | Commercial Loan | Refinance Loan | *Financial Planning | *Insurance
  4. 4. The bank is prohibited from disbursing or lending you the 80% if they are aware that you have borrowed from any financial institution (regulated by the authority or moneylender or any vendor's loan) the required 20%. Join us | Login for Financial Advisors | SMS us at +65 – 9782 - 8606 Home Loan | Commercial Loan | Refinance Loan | *Financial Planning | *Insurance
  5. 5. All these is defined under MAS Notice 632 – 28 June 2013 “Purchaser’s Contribution 5. A bank shall not disburse funds under any credit facility for the purchase of Residential Property until the Borrower has paid, out of funds not obtained through any credit facility granted by any financial institution regulated by the Authority or moneylender, or any Vendor's Loan, at least the difference between: (a) the purchase price of the Residential Property; and (b) the Relevant Amount, Join us | Login for Financial Advisors | SMS us at +65 – 9782 - 8606 Home Loan | Commercial Loan | Refinance Loan | *Financial Planning | *Insurance
  6. 6. All these is defined under MAS Notice 632 – 28 June 2013 “Purchaser’s Contribution which difference shall include a minimum cash payment of Cash% as referred to in paragraph 17(n). “ (Source: MAS Notice 632 – 28 June 2013) Join us | Login for Financial Advisors | SMS us at +65 – 9782 - 8606 Home Loan | Commercial Loan | Refinance Loan | *Financial Planning | *Insurance
  7. 7. However, corporations are not bounded by this rule Because Some corporations can lend you the downpayment. But then they will be contravening another act as they are not licensed money lenders or financial institutions, they cannot lend out monies. Join us | Login for Financial Advisors | SMS us at +65 – 9782 - 8606 Home Loan | Commercial Loan | Refinance Loan | *Financial Planning | *Insurance
  8. 8. So Strictly based on this definition, the only way to get a loan to bridge this downpayment is to tap on informal lenders - parents, relatives, friends. Join us | Login for Financial Advisors | SMS us at +65 – 9782 - 8606 Home Loan | Commercial Loan | Refinance Loan | *Financial Planning | *Insurance
  9. 9. So What Is Your Only Recourse? It is possible that staff loans do not fall under this category of “financial institutions” and they are not lending to the public at large, and hence do not need a license if they lend to their staff. But How many corporations are so generous to lend to their staff the 20% downpayment? Join us | Login for Financial Advisors | SMS us at +65 – 9782 - 8606 Home Loan | Commercial Loan | Refinance Loan | *Financial Planning | *Insurance
  10. 10. You can check out the guys at www.iCompareloan.com to compare singapore home loans. Join us | Login for Financial Advisors | SMS us at +65 – 9782 - 8606 Home Loan | Commercial Loan | Refinance Loan | *Financial Planning | *Insurance
  11. 11. About Property Buyer Mortgage Consultants Property Buyer Mortgage Consultants is a research focused independent mortgage broker. We emphasize a consultative approach where we match our client’s financial situation with the best fit mortgage loan, not simply a cheap loan. We also help property buyers in their buying process helping them avoid pitfalls from unscrupulous property agents. (We are not property agents, therefore there is no conflict of interests.) We also developed our proprietary home loan reporting tool which provides amongst other things, 23 years Sibor history as well as 6 years worth of SOR. Our service is free to you as banks pay us a commission on loan deals completed. Banks in turn save on staffing cost as we are not on their payroll. www.PropertyBuyer.com.sg/mortgage www.SingaporeHomeLoan.net www.iCompareLoan.com/consultant/ Join us | Login for Financial Advisors | SMS us at +65 – 9782 - 8606 Home Loan | Commercial Loan | Refinance Loan | *Financial Planning | *Insurance

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