Will bank reassess our income and allow us to borrow higher loan amount when close to BTO key collections? - Seedly
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Anonymous

Asked 2w ago

Will bank reassess our income and allow us to borrow higher loan amount when close to BTO key collections?

We applied BTO and plan to take up bank loan.

Did some research and realise we can only get a small portion of bank loan due to low income now.

Will the bank reassess our income and allow us to borrow higher loan amount when close to key collection?

Eg. We need 75% bank loan which is 400k, but right now only can borrow 200k. Next time will they reassess and allow higher loan amount?

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Hello there,

In my personal experience, taking up a bank loan upfront for your HDB might not be an ideal situation for most. This is due to the high liquidity required, as well as the high downpayment required for your HDB BTO. As you mentioned, you both are currently drawing an income which does not meet the criteria for your loan.

While yes, bank loans do offer a lower interest rate with reference to a HDB loan, you can take up a HDB loan and switch to a bank loan after you have gained an increase in your drawn incomes. In the interim, the lower downpayment might help you to secure the flat, while you source for your funding to make up the difference of 200k.

Hope i was able to shed some insight!

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2 more comments

Question Poster

2w ago

Correct me if I'm wrong, so the procedure is something like this? : Once I gotten the ballot number, I can proceed to a bank to get a quote of the bank loan (the amount is not final, so it is okay to be low now) and obtain an IPA. During flat selection, they will only look at whether I have an IPA and let us select a unit At sign lease of agreement stage, I will present the letter of offer given by bank and the loan amount still don't matter? We just have to pay 10% DP and other legal fees?
Question Poster

2w ago

Years later finally at the key collection stage, the bank will reassess our income and allow us to get higher loan amount? And if let's say I can get 400k by then, I will only have to pay the remaining 15% DP and other legal fees?
Thank You!
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