90% mortgages- do they still exist?

[Mr Tien Per Cent]

My Bank last year (local big 4) was prepared to lend me 90% for a property purchase.

Now they say that 90% ers are out of the question due to market conditions and they will only consider 85% or 80%

[cmdsea]

In fact I didnt think 90% loans here were allowed... Are you sure it wasnt 80% LTV and 10% Cash + 10% CPF.?

[i got one]

90% loans are available for PR.

Depends on which bank and of course - which property!

[Ahyah]

Yeah. It's not easy to get approved tho.

You need perfect credit rating, I think the debt to income ratio is higher (not sure), interest rate is higher than the normal 80% loan (your monthly payments can be almost double for just 10% more), they sometimes request collateral (FD, which defeats te purpose).

For all the trouble, if do eventually offer you a 90% loan be prepared that when you are ready to restructure your package to an 80% (for the lower interest rate) they give you a shitty valuation so you end up being stuck on the 90% rate if you don't have a ton of cash.

Banks suck.

In my opinion, best to beg, borrow, steal (family, friends)the other 10% if you're coming up short and really think the property you want is a good, safe investment NOW. Otherwise, wait till you have saved enough cash/liquidated your other assets for the short fall.

Good luck.

[buy now]

Market Conditions ??

The market is bracing itself for another major bull run fuelled by interest rates.

The banks will handing them out like candy soon.

[Which Koolaid?]

What koolaid are you slurping? You have GOT to either be an agent, someone desperate to unload property you can no longer afford or a propaganda merchant.

[to pp]

Nope, just a tedious repetetive troll who thinks they are amusing.

[How much higher]

How much higher is the interest rate between a 90% and 80%

A PP poster mentions a doubling of monthly installaments- this seems excessive.  surely it must be the diffrence between SIBOR + 1 and SIBOR + 1.5  or something like that right?

[totally]

Yeah. It's not easy to get approved tho.

You need perfect credit rating, I think the debt to income ratio is higher (not sure), interest rate is higher than the normal 80% loan (your monthly payments can be almost double for just 10% more), they sometimes request collateral (FD, which defeats te purpose).

For all the trouble, if do eventually offer you a 90% loan be prepared that when you are ready to restructure your package to an 80% (for the lower interest rate) they give you a shitty valuation so you end up being stuck on the 90% rate if you don't have a ton of cash.

Banks suck.

In my opinion, best to beg, borrow, steal (family, friends)the other 10% if you're coming up short and really think the property you want is a good, safe investment NOW. Otherwise, wait till you have saved enough cash/liquidated your other assets for the short fall.

Good luck.

agree with this...to the fullest extent possible, go for an 80% loan..

[_pripps]

What koolaid are you slurping? You have GOT to either be an agent, someone desperate to unload property you can no longer afford or a propaganda merchant.

I think its the BM posting under another name, seems like they have the same intelligence level.

[80% vs 90%]

i have 2 mortgages, 1 at 90% and the other at 80%.
the one at 90% is at SIOBOR + 1.75%
the one at 80% is at SIOBOR + 1.25%

[Ahyah]

This suprised me, it's not a bad rate difference.
Still;
1.25% on 800k = 10k
1.75% on 900k = 15.75K

That's a 57% difference purely on interest, your repayments to principal would obviously be 10% higher.

I was quoted in March '09 by serveral different banks, so can't remember exactly, fixed/floating rate roughly about a 1% difference between the 80% and 90% rate.

Having a long standing relationship with the bank you take the mortgage from seems to help with getting better rates.

Mind you, I've had the experience of doing all the paper work only to find just before acceptance, I was convinently told that particular rate was no longer available.

If you receive such attractive quotes, get a letter of offer to make it official before you put all your eggs in one bank.

Again, Banks suck.

And again, good luck with your purchase.

i have 2 mortgages, 1 at 90% and the other at 80%.
the one at 90% is at SIOBOR + 1.75%
the one at 80% is at SIOBOR + 1.25%

[writing on the wall]

This suprised me, it's not a bad rate difference.
Still;
1.25% on 800k = 10k
1.75% on 900k = 15.75K

This is the clear indication of how fagile the Singapore property market is. Just a .5% increase in interest rates equals a 50% increase in repayments.

The market cannot sustain an even slight interest rate increase and yet the global economy is about the go north on rates.

tsk tsk tsk MAS. oohhhh MacGoo you've done it again!!!

[bad sums]

get back to school!

[buy now]

Bull run is coming. Like it or not.  Low interest rates probably be around for some time as well. China is very robust as is Singapore.

Never been a better time to get in on the act before the IR comes to town.  

Why do you think JBA spends all her time on holiday...its because she CAN !!!

She is not a quitter, a fencesitter or a boatmisser.

Oh have fun on the dockside, there are some $2 noodle stalls there.