Equity Term Loan

This is a useful way to unlock equity from your existing private property. Refer to this for the details.

Stretching Tenure

When refinancing, the max loan age is 75, and not 65. This effectively stretches the loan tenure by 10 years, therefore lower mortgage instalments. This is a neat trick for elderly buying a property yet wants the max 75% LTV.

Let’s say you’re a 55yo buying a property. For a new loan, the tenure can only be 10y (65 - 55) to get the full 75% LTV. You can get the new mortgage with 10y first, with no lock-in. Then after a 1 year service period (check with banker), you can refinance and CHANGE BANK. When refinancing, you can get 19y tenure (20 - 1, because 1 year has passed) for full 75% LTV.

Bridging Loan

When your sale proceeds does not come in fast enough for your subsequent purchase, you can take a short term bridging loan, max 6 months, interest 5-7% flat.

For private, you can apply the loan after you’ve exercised. For HDB, it will be after sale approval.

Selling existing: Your cash proceeds come in after sale completion, while CPF 14-21 days later.

Buying new: The purchase sale completion requires the cash, that’s where bridging loan comes in. In the event that your cash proceeds come in just in time, you can cancel the bridging loan.

B2B Lender

If you own a business, you can get business loan, though at very high interest rate.

Car Loan affects TDSR

You can either pay off the car loan first, or refinance to a private financier instead of a bank. As long as no CBS lodged, it can’t be checked, so it won’t affect your TDSR.

Buying under company

Individuals can pool their money and buy as a company. Banks will require directors to sign a Personal Guarantors.

Instead of pumping fund into share capital, it is better to provide a loan to avoid company tax.

Valuations

Get different ones, use it to your advantage.