Results 1 to 14 of 14

Thread: once you've paid your loan...

  1. #1

    Default once you've paid your loan...

    Once the loan is paid and you receive your title...where to store this document? I was wondering whether it is necessary to store it in a safe, or is there no need to do so?

    Thank you for your suggestions

  2. #2
    Join Date
    Oct 2012
    Posts
    460

    Default

    Buy a safe and put at home... then u can stash it there
    When you have eliminate the impossible, whatever remains, however improbable, must be the truth

  3. #3
    Join Date
    Dec 2011
    Posts
    1,763

    Default

    Use it to borrow more money. Return it back to the bank

  4. #4

    Default

    Quote Originally Posted by sherlock View Post
    Buy a safe and put at home... then u can stash it there

    Thanks...what will happen if it disappears?

  5. #5

    Default

    Quote Originally Posted by indomie View Post
    Use it to borrow more money. Return it back to the bank

    I'll wait until property prices and taxes become more reasonable. Until then...overseas property at the price of a SG downpayment.

  6. #6
    Join Date
    Feb 2010
    Posts
    76

    Default

    Mine in cisco safe

  7. #7
    Join Date
    Oct 2012
    Posts
    526

    Default

    Quote Originally Posted by indomie View Post
    Use it to borrow more money. Return it back to the bank
    Hi bro indomie

    If I have a pty, left 20% to go, can I borrow $$ from this property to pough into another property..assuming I put under my child name...

  8. #8
    Join Date
    Jun 2009
    Location
    Southbank
    Posts
    9,531

  9. #9
    Join Date
    Jun 2013
    Posts
    1,301

    Default

    Quote Originally Posted by Werther View Post

    Hi bro indomie

    If I have a pty, left 20% to go, can I borrow $$ from this property to pough into another property..assuming I put under my child name...
    I think that is called an equity loan, which is what I did...borrowed 400k against my terrace house which has risen in value since we bought it..

  10. #10
    Join Date
    Feb 2014
    Posts
    476

    Default

    Quote Originally Posted by mummy View Post
    I think that is called an equity loan, which is what I did...borrowed 400k against my terrace house which has risen in value since we bought it..
    How is borrowing from own property different from borrowing from bank?

    What happens if the value raised has crashed below the value?

  11. #11
    Join Date
    Jun 2013
    Posts
    1,301

    Default

    Quote Originally Posted by Yuki View Post
    How is borrowing from own property different from borrowing from bank?

    What happens if the value raised has crashed below the value?
    It is borrowing from bank but strictly speaking, not supposed to use the loan to buy Sg properties though some still do..can use it for other investments or business..

    The bank has to assess your income and ability to repay...if value crashes, then risk of margin call where we have to top up cash but my borrowings in total for my terrace is 1mil and value is 2 mil...banker kept reassuring me low risk of margin call.

    I took an equity loan before the TDSR rules came out, banker had warned me new rules were coming so advised me to quickly take loan before the new rules came out. So my car loan was not factored in then but maybe because my earning capacity was there as a doctor so they granted me the loan too..

  12. #12
    Join Date
    Jun 2009
    Location
    Southbank
    Posts
    9,531

    Default

    MortgageGuru - correct me if I am wrong.

    How is borrowing from own property different from borrowing from bank?

    Borrowing from the Bank need collateral, in this case the collateral is your property.

    Only private property can be use, HDB cannot be use.

    When you buy your property for SGD 535,000 and valuation is SGD 1,550,000 then you have SGD 1,015,000 of equity gain on your property.

    The Bank then can loan you depends on the time of the Day before Fri 1700, MAS requirement to you the money.

    Example : the Time of the day MAS requirement is 60% LTV with no assessment of you income then the Bank can loan you 60% of SGD 1,550,000 = SGD 930,000.

    If you want to use your property as collateral then the Bank will deduct SGD 930,000 - SGD 428,000 = SGD 502,000 to you.

    The money is call cash-out.

    What happens if the value raised has crashed below the value?[/QUOTE]

    When the value crashed below SGD 930,000 the Bank will hello hello you to top up the different, if not they sell on your behalf call mortgagee sale.

  13. #13
    Join Date
    Sep 2014
    Posts
    299

    Default

    Hi Arcachon

    Yes you are right. You can't borrow from your property. You are borrowing from the bank and your property is a collateral. I don't think any bank will do loans with no assessment of your income.
    Normally after some time your loan will decrease from $428,000, depending on the interest rates you are taking.
    So for example you paid $70,000 in principle in the 2 years and end of this 2 years your outstanding loan is $358,000 instead.
    If your monthly payments are made with CPF, then the max loan amount will be cannot include this CPF amount. if it is paid with cash then it can be included in the cash out amount.

    When value drops too much, its the bank's discretion to do a margin call to ask you to top up the difference. If not it will be forced sale of the collateral. And if the sale amount is still less than the amount of outstanding loan, you still owe the bank the difference.

  14. #14
    Join Date
    Jun 2009
    Location
    Southbank
    Posts
    9,531

    Default

    Thanks

Similar Threads

  1. Dinner is paid just need to come and learn.
    By Arcachon in forum Coffeeshop Talk
    Replies: 4
    -: 23-05-19, 13:02
  2. HDB flat paid fully with CPF is a big mistake?
    By Arcachon in forum Coffeeshop Talk
    Replies: 5
    -: 26-12-18, 17:23
  3. Efforts to cool housing have paid off, says Khaw
    By reporter2 in forum Singapore Private Condominium Property Discussion and News
    Replies: 27
    -: 24-08-15, 18:10
  4. Get Paid for completing Surveys - scam?
    By ccsee in forum HDB, EC, commercial and industrial property discussion
    Replies: 5
    -: 10-07-12, 11:08
  5. Parents' paid-up HDB and own condo
    By ngloong in forum Finance and Legal
    Replies: 0
    -: 05-08-09, 20:28

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •