Read about this bank request loan pay off at a gov website, if value of your property fall and the original loan to value ratio is exceeded.
I had brought an OCR private condo at 2011, now I have just checked it's bank valuation and shockingly found out it has dropped about 10%, my bank surely knew about it too. So will the bank ask me to pay off 10%? If so, many owners will be hit badly if this happen. When will they request me to pay off? How much do I need to prepare for such pay off?
Then what about CCR properties, had dropped a lot more, some cases like 20%, 30%. Will the bank request these owners to pay fully in cash? 30% cash look like a lot if it really happen. Anybody can share if such things happened before?
The website says - Also note that your lender may ask you to pay off some of the outstanding loan should the value of your property fall and the original loan to value ratio is exceeded. You may have to be prepared to dip into your savings for this purpose.
http://www.moneysense.gov.sg/life-ev...ng-a-home.aspx