Hi
This may seem a simple qn. Anyone knows if you can mortgage your loan after paying 20% downpaymwnt and still servicing based on progressive payment for new proj. Purpose is to get cash-flow
Newbie
Mortgage of existing loan
Hi
This may seem a simple qn. Anyone knows if you can mortgage your loan after paying 20% downpaymwnt and still servicing based on progressive payment for new proj. Purpose is to get cash-flow
Exalted
wat u mean?Originally Posted by Ultroman
Newbie
Put it another way
Say for a 800k ppty u paid 300k downpaymwnt and 500k loan for a property. If u were to mortgage the ppty say market valuation is 800k oso, bank will only provide 80% of valuation = 640k. After less 500k loan, u get 140k while still serving monlthy instalment. Dats hw it works rite, correct me if wrong
Wat abt for ppty under constr and progressive payment
Exalted
ic...u r refering to equity loan based on ur ppty...
banks can lend u up to 70% of the current valuation minus outstanding loan
Junior
Best to check with yr bank directly. It's complicated if the loan has not been fully disbursed yet.
Newbie
you will need to speak to your banker directly, or just ask one of them present at the various launches.
technically i dun think any bank will provide remortage of any property that is not paid up yet. a bank i spoke to provided `term loan' on private property that you already fully paid up. even then, they only provide that loan amount based on the bank valuation less the cpf used (if any).
Newbie
Its possible but just take note that the term loan that you got was based on the bank's valuation and not actual profit taking. During a down turn, when valuations go down, its very possible for the bank to call for a term loan cash back.
The big question here is why do you need a term loan for cash flow? If I interpret the scenario correctly, do you have difficulties paying for your existing mortgages and thus the need to withdraw a lump sum so as to pay for the existing mortgage + term loan ?
This is risky in my opinion as you are in a highly leveraged position with no cash reserves to fall back on. I could be wrong so I stand corrected.
Senior
Your proposal to do this is quite counter intuitive. You will still have to pay mortgage loan interest and incur additional risk for the 140k you take from the bank. Not wise. Just pay 20% which is $160k and save the $140k for liquidity. You will have less admin problem...The additional interest from the mortgage loan is minimal lah...
Newbie
Ya I got diff answer when ask diff pple. Think this really depends on individual banks also. Jus trying to explore various methods of getting equity when situation arises. Thanks all reply
Global recession is coming....
You cannot remortgage your loan, but you can refinance your property and at same time ask for mortgage term loan to be paid out to you as cash. With interest rate at super low of <1.2%, it is no brainer and the cheapest loan you can get for your other investments (e.g. put in stocks and earn >5-20% pa return - depending on your skill).
Exalted
not sure whether wat u say is right wor....You cannot remortgage your loan, but you can refinance your property and at same time ask for mortgage term loan to be paid out to you as cash. With interest rate at super low of <1.2%, it is no brainer and the cheapest loan you can get for your other investments (e.g. put in stocks and earn >5-20% pa return - depending on your skill).
example: bot a unit from developer at 1mil....only took 50% loan(500k loan).....1yr later....valuation went up to 1.2mil. the same bank still can offer a separate mortgage equity loan up to 70% of the 1.2mil minus 500k
refinance also can......another bank take over the existing 500k loan and on top of tat offer another term loan...equity mortgage loan....watever u name it
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