Page 2 of 2 FirstFirst 12
Results 6 to 8 of 8

Thread: Bank may ask you to pay off some of the outstanding loan

  1. #6

    Default

    Quote Originally Posted by rsrunner123 View Post
    I took a maximum LTV (loan to Valuation ratio) 80% like many others who believed interest rate is low. Make good use of low rate.

    Did a quick check and learnt that this knew as On-Margin Call. Some sources said during a sustained property down-cycle, look similar to now, and drops (20% or more) in property market values, this On-Margin Calls are be expected. Usually owners of luxury properties that suffer the most price volatility has higher chance receiving On-margin call, given the recent news of losses sustained by home sellers in Sentosa Cove of as high as 50. Properties most at risk are those in the high-end luxury segment where prices were inflated during the up-cycle.

    I don't have good confident that banks are so generous loaning out money easily, without calculating the risk exposed, all banks are going after money, the banks can force to impose penalties on the homeowners, this could include repossessing and offloading the properties.

    To be at the safe side, keeping a saving for margin call is good, just in case I am the unlucky one of few property owners faced with a margin call.
    indeed. ccr price correction has been because of TDSR refinancing restrictions and fear/actual margin call threats. it has been ongoing for years and still ongoing but too a lesser degree now than the initial shock in 2014. i would be surprised that any units in OCR would be hit with margin call since there is a 20% buffer and prices should not have fallen > 20%.

    in any case, keeping savings for margin call is wise and a good buffer to have in current times.

  2. #7

    Default

    Quote Originally Posted by rsrunner123 View Post
    I took a maximum LTV (loan to Valuation ratio) 80% like many others who believed interest rate is low. Make good use of low rate.

    Did a quick check and learnt that this knew as On-Margin Call. Some sources said during a sustained property down-cycle, look similar to now, and drops (20% or more) in property market values, this On-Margin Calls are be expected. Usually owners of luxury properties that suffer the most price volatility has higher chance receiving On-margin call, given the recent news of losses sustained by home sellers in Sentosa Cove of as high as 50. Properties most at risk are those in the high-end luxury segment where prices were inflated during the up-cycle.

    I don't have good confident that banks are so generous loaning out money easily, without calculating the risk exposed, all banks are going after money, the banks can force to impose penalties on the homeowners, this could include repossessing and offloading the properties.

    To be at the safe side, keeping a saving for margin call is good, just in case I am the unlucky one of few property owners faced with a margin call.
    What you are doing is correct.

    If I were you, I will only take up 80% LTV if my entry price is low. However, If my entry price is high, I will take up at most 70% LTV.

    There are already many bank's sales in RCR and OCR and we should be seeing more of such sales as the job market is weakening going forward.

    If you are stuck with a property with high LTV, the right thing to do now is to save and keep more cash.

  3. #8

    Smile

    Quote Originally Posted by bargain hunter View Post
    indeed. ccr price correction has been because of TDSR refinancing restrictions and fear/actual margin call threats. it has been ongoing for years and still ongoing but too a lesser degree now than the initial shock in 2014. i would be surprised that any units in OCR would be hit with margin call since there is a 20% buffer and prices should not have fallen > 20%.

    in any case, keeping savings for margin call is wise and a good buffer to have in current times.
    Well, I think I am quite safe. I wasn't heavily invested in properties, also didn't buy many prime areas properties during the up-cycle.

Page 2 of 2 FirstFirst 12

Posting Permissions

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