Advertisement
Anonymous
Hi, the HLE amount I was offered is really low ($30k) and downpayment with a bank loan is too high. Hence, I'm wondering what our options are. Can we take a HDB loan now so we can afford the 10% down first and then change from HDB loan to bank loan before collecting the key? What happens to the 10% down we've paid?
6
Discussion (6)
Learn how to style your text
Reply
Save
Peter Lin
11 Jan 2021
Brand Comms Lead at Mortgage Master
You can choose to take a HDB loan first to reduce the amount required for your downpayment now.
You then have the option of "switching to" a bank loan before collecting your keys, but do note the following:
1) Since you haven't collected the keys yet, it will still be considered a "new purchase", so you will probably still need to pay the additional 15% downpayment (of which at least 5% of the purchase price must be in cash)
2) The application, approval and loan disbursement process with the bank will take about 2 months. This may end up delaying the key collection (since you cannot collect the keys until loan disbursement)
Alternatively, you can collect the keys first, and then refinance to a bank loan after you have paid the HDB loan for about 3 months (to prove to the bank that you're credit-worthy). This also means you don't need to worry about the downpayment since it is refinancing.
Hope this helps!
Reply
Save
Just happen to have recently spoken to a home loan adviser. Yes, as long as before key collection, y...
Read 1 other comments with a Seedly account
You will also enjoy exclusive benefits and get access to members only features.
Sign up or login with an email here
Write your thoughts
Related Articles
Related Posts
Related Posts
Advertisement
Joining a community, and embracing the journey, you'll be well on your way to becoming a confident and skilled kayaker. So grab your paddle, put on your PFD, and get ready to paddle your way to unforgettable memories and endless fun on the water! https://howtokayaking.com/best-folding-kayak/