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Anonymous
Approval in Principle from bank for HDB?
I have successfully balloted for my bto and have signed the option to purchase. Have chosen to go with bank loan, HDB said they will be asking me to go down in a few months time to pay the first downpayment. My question is that do i just need to go to the bank to get the approval in principle letter from any banks and that this letter does not mean that i will be committing to sign the mortgage loan with that particular bank when i am going to collect my keys?
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Peter Lin
13 Apr 2021
Brand Comms Lead at Mortgage Master
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Hi there, congrats on your BTO and signing the option to purchase!
Yes, you are right, an AIP is not a commitment to sign a loan with that particular bank. It is just an indicator of your creditworthiness at this point in time. If you're planning to apply for a bank loan only near the key collection date, getting an AIP now isn't really relevant.
What I can suggest is to declare that you're taking an HDB loan or not taking a loan in order to pay a smaller downpayment and avoid paying any portion of the downpayment in cash. Then, when it's about 6 months before the key collection date, apply for that bank loan.
Why 6 months? So that the process of obtaining the bank loan does not delay your key collection.
Hope this clarifies!