yowetan, MAS just shattered your dreams.

[Ringo33]

With this new ruling, Yowetan should be hit hardest???

[Ringo33]

Actually I think Yowetan might be in trouble liao. Based on what he said previously, he will face problem refinance his FV property unless he has the money to bring down the LTV from 90% to 60%. So by time his existing loan hit year 3 or 4, interest rate is going to jump significantly and he will be at the bank mercy to accept their repricing package.

My current HDB flat has an outstanding loan of 450k approximately. The loan is from SCB @ 0.65+Sibor rate.

The second loan as mentioned will be based on the 90% of the purchased price, at the rate of Sibor+SOR combination with base rate of 0.40%.

[chestnut]

Actually I think Yowetan might be in trouble liao. Based on what he said previously, he will face problem refinance his FV property unless he has the money to bring down the LTV from 90% to 60%. So by time his existing loan hit year 3 or 4, interest rate is going to jump significantly and he will be at the bank mercy to accept their repricing package.

He has no problems with his loans. You have to read his post that you can figure out. Not just 1 off statements he made. This is true as long as he is still with his current job.

[price]

bank staff still gets 90% LTV bro

[Ringo33]

He has no problems with his loans. You have to read his post that you can figure out. Not just 1 off statements he made. This is true as long as he is still with his current job.

I would be very surprise if banks doesnt tighten up their staffs lending LTV after this announcement, especially if the loan tenure is beyond 30 or 35 years.

At the moment if he take up a 2nd loan with more than 30 years tenure, he will have to pay 60% down payment. So my question is, why would the bank need to offer him 50% LTV mortgage incentive just because be is a staff? wont that be creating subprime within the organization?

[chestnut]

I would be very surprise if banks doesnt tighten up their staffs lending LTV after this announcement, especially if the loan tenure is beyond 30 or 35 years.

At the moment if he take up a 2nd loan with more than 30 years tenure, he will have to pay 60% down payment. So my question is, why would the bank need to offer him 50% LTV mortgage incentive just because be is a staff? wont that be creating subprime within the organization?

No sub prime lah issue. Home loan to staff is just a drop in the ocean compared to entire home loan. Banks have very stringent criteria to join them and also remain in the banking industry, I wrong move like- bankruptcy, jail, etc. and they can no longer work in the financial institution.

Btw, I do not work in the bank.

[buttercarp]

Oh, did not see this thread here.
Thanks Ringo for starting it.

Yup, yowetan may be affected.
He should have signed the S&P so there is no turning back for him.

Yowetan, good luck to you.

[buttercarp]

bank staff still gets 90% LTV bro

Really..... why are they so privileged?

I remember Laguna said he/ she will be writing in to the relevant authority regarding this.
Laguna...... any reply from them?

[chestnut]

Really..... why are they so privileged?

I remember Laguna said he/ she will be writing in to the relevant authority regarding this.
Laguna...... any reply from them?

He can write to minister also no use.

[Laguna]

Really..... why are they so privileged?

I remember Laguna said he/ she will be writing in to the relevant authority regarding this.
Laguna...... any reply from them?

BUtter...good memory
their reply dated 26 July...
"We are currently reviewing the existing policy of exempting housing loans given by banks to their employees from our housing loan rules, to assess if it continues to be relevant in today’s context. We will update you on the outcome of our policy review at an appropriate time."

and sent in one or two more reminders..and no news
In fact, the one replied me is a young scholar and I spoke to her personally....

[buttercarp]

BUtter...good memory
their reply dated 26 July...
"We are currently reviewing the existing policy of exempting housing loans given by banks to their employees from our housing loan rules, to assess if it continues to be relevant in today’s context. We will update you on the outcome of our policy review at an appropriate time."

and sent in one or two more reminders..and no news
In fact, the one replied me is a young scholar and I spoke to her personally....

Thanks Laguna for the update.

So no changes for bank employees.
Yowetan should be safe for the time being.

[price]

Really..... why are they so privileged?

I remember Laguna said he/ she will be writing in to the relevant authority regarding this.
Laguna...... any reply from them?

It's been like this for so many years. Many of my friends are bankers. including my own sister. 100% sure they can get 90%LTV plus attractive staff rates. Even their normal saving accounts are at 1% p.a. staff rate

[buttercarp]

It's been like this for so many years. Many of my friends are bankers. including my own sister. 100% sure they can get 90%LTV plus attractive staff rates. Even their normal saving accounts are at 1% p.a. staff rate

No wonder the bank employees are willing to slog for their organization.

[Lovelle]

remember, we are all slogging for the banks. hence i buy bank shares...

[yowetan]

Hi All. Thanks for the concern. I appreciate all of your kind intention and attention.

I am also caught by surprise last night when I was browsing propertyguru for D05 properties - Hundred trees, Botannia, The Parc condominium, The Sorrento and Carabella.

My wife actually warned me of it when she caught the news in the Yahoo Website.

As of moment, there is nothing I can do. I will double check and confirm with my company HR on the consequences trigger by the MAS.

[Pikachu1245]

bank staff still gets 90% LTV bro

I am surprise if the recent CM policy of restricting loan quantum does not apply to all as there is exception from bank staff? Isn't this an unfair policy?

Think for those who want to circumvert the recent CM policy should quickly join the banking sector then ?....

[Kanarazu]

I am surprise if the recent CM policy of restricting loan quantum does not apply to all as there is exception from bank staff? Isn't this an unfair policy?

Think for those who want to circumvert the recent CM policy should quickly join the banking sector then ?....

MAS policies ultimately is driven by risk management. Like someone said before, bank staff loan privileges are just a drop in the ocean and doesn't affect the risk environment much, just Maris Stella, or Stilla Maris.

[Pikachu1245]

Really..... why are they so privileged?

I remember Laguna said he/ she will be writing in to the relevant authority regarding this.
Laguna...... any reply from them?

Now I understand why a relative of mine says her friend's husband who is working in the banking sector has buy/sell properties and garnered more than 6 million cash in his account. Wow.... cool. Probably the 90% LTV have made it possible? Cool man....any bank (still with 90% LTV) has job opening? I wanna join.......

[4wheels]

bank staff still gets 90% LTV bro

If bank does not give 90% Ltv, they still can give interest free loan to their employee. In the end, I think still the same.

[radha08]

BUtter...good memory
their reply dated 26 July...
"We are currently reviewing the existing policy of exempting housing loans given by banks to their employees from our housing loan rules, to assess if it continues to be relevant in today’s context. We will update you on the outcome of our policy review at an appropriate time."

and sent in one or two more reminders..and no news
In fact, the one replied me is a young scholar and I spoke to her personally....

bro you the man...

[Pikachu1245]

If bank does not give 90% Ltv, they still can give interest free loan to their employee. In the end, I think still the same.

If the purpose of CM is for risk management isn't it important for everyone including those in the banking sector to be subjected to the same loan restriction? With the slow down in economy, what if some banking staff get retrenched? Won't this excessive LTV of 90% for banking staff be withdrawn and cause some impact?

[Ringo33]

If bank does not give 90% Ltv, they still can give interest free loan to their employee. In the end, I think still the same.

NO, its not the same. 90%LTV will give you the opportunity to buy a 1m pty with just 100K, while under normal circumstance, you would need 200K.

[price]

If the purpose of CM is for risk management isn't it important for everyone including those in the banking sector to be subjected to the same loan restriction? With the slow down in economy, what if some banking staff get retrenched? Won't this excessive LTV of 90% for banking staff be withdrawn and cause some impact?

dude this 90%ltv for staff has been around for so long.

[price]

I am surprise if the recent CM policy of restricting loan quantum does not apply to all as there is exception from bank staff? Isn't this an unfair policy?

Think for those who want to circumvert the recent CM policy should quickly join the banking sector then ?....

there's many other things in life that are unfair. I'm sure u experience that at work everyday.

[proper-t]

Hi All. Thanks for the concern. I appreciate all of your kind intention and attention.

I am also caught by surprise last night when I was browsing propertyguru for D05 properties - Hundred trees, Botannia, The Parc condominium, The Sorrento and Carabella.

My wife actually warned me of it when she caught the news in the Yahoo Website.

As of moment, there is nothing I can do. I will double check and confirm with my company HR on the consequences trigger by the MAS.

You don't have to worry as long as yr S&P or Option is signed before the 6 Oct 12. It doesn't matter if you still haven't taken up bank loan. The CM is not dependent on date of Bank LO but date of S&P/option.

see small print on MAS website

2 The rules will apply to new loans granted to individuals and non-individual borrowers, by financial institutions regulated by MAS, for the purchase of residential property, if the date when the option to purchase was granted or, where there is no option to purchase, the date of the sale and purchase agreement, is on or after 6 October 2012. For re-financing facilities, the rules will apply where the application date of such facilities is on or after 6 October 2012.

[yowetan]

You don't have to worry as long as yr S&P or Option is signed before the 6 Oct 12. It doesn't matter if you still haven't taken up bank loan. The CM is not dependent on date of Bank LO but date of S&P/option.

see small print on MAs website

Hi. Thanks for clarify this. I am actually worrying over my re-financing for my HDB.

[CondoWE]

Hi. Thanks for clarify this. I am actually worrying over my re-financing for my HDB.

Beside HDB, you should worry about yr FV too... !

Good luck to u.. .

[Pikachu1245]

there's many other things in life that are unfair. I'm sure u experience that at work everyday.

OK, thanks. Those in the banking sector is privileged group and untouchable lol

[radha08]

if u work for apple can get iphone 5 not need to que...if u work for PEAR...can suck thumb...in the QUE...

[Pikachu1245]

if u work for apple can get iphone 5 not need to que...if u work for PEAR...can suck thumb...in the QUE...

So quick, everyone. If still want to get 90%LTV wef 6Oct12, join the banking sector as otherwise no choice?