Question on Decoupling for couple!

[leesg123]

Ok gurus, if you have done decoupling, or have knowledge, I would be most grateful!

We intend to sell all our property portfolio, and keeping 1 remaining. For this 1 remaining, it is held 50-50 and we are joint borrowers for the home loan.

I intend to transfer it to my spouse 100%, must my spouse submit a fresh loan application to service the 50% of my share?

[smellyfish]

yes, in my case with a donkey bank in singapore, they term it as fractional purchase. My wife ended up with two loans for the property and every month gets two statements, one for her 50% and one for my ex-50%. I asked the bank whether the new LTV financing rules apply since the way they do it, it can be construed as a second home loan, but they say no. I also asked if she can keep the existing home loan package for her 50% since it was a much better deal, they also say no.

so my wife ended up submitting two loan applications
full legal fees apply and it is more ex than a straightforward home loan. stamp duty applies too.

one stupid thing was that the bank say I can only "sell" the property to my wife at valuation, and not below valuation. but because the property is in the money and i could do with the cash back, so i didnt kpkb

[leesg123]

Thanks man! Why did she submit two applications? Is it because the original one which is made up of two names is considered 'void'?

[smellyfish]

yeah, she now has two loans, Loan 1 to refinance her existing 50% and Loan 2 to purchase my 50%. she got two of everything, LOFs, monthly statements etc. i wanted to keep the existing loan because that was on a step down interest that was only offered back then, but the bank doesn't allow.

[newbie11]

Likely will be 2 loans with same bank else refinance.