Multiple AIP

The Monetary of Singapore (MAS) has introduced the Total Debt to Service Ratio (TDSR) to set the limit which buyers can borrow for a mortgage loan. The “Proof of Debt” clause has caused many paperwork for credit officers in banks who are working long hours for the buyers.

According to MAS, banks are required to set the TDSR at 60%. This essentially has placed the burden on banks to make sure that they impose the “Proof of Debt” on potential borrowers. For example, if your credit report indicates that you have many credit bills outstanding, the bank will use this amount to compute the required monthly servicing amount which is then included in the monthly TDSR component. This essentially make borrowing for The Hillford Condo a little more taxing as the paperwork required to approve a loan is more tedious than it was in the past.

As many buyers are more wary of how much they can borrow under the new TDSR requirements, a bank’s AIP is now much more crucial and essential in applying for a loan. Supposedly, if property buyers pay the 1% option fee and are unable to get a loan, they could end up losing the option fee.

Because AIP is now more crucial and taxing, the application process takes away valuable time and resources from the bank. Also, due to TDSR, many buyers are applying for AIP and this piles extra workload on the bankers, banks and especially credit officers in the banks. Credit officers are at a receiving end of the business as they often get abuses and curses from customers who fail to get the loan for The Hillford Condo.

As the TSDR system has caused many buyers to apply for multiple AIPs, this has caused the bank to seriously consider scraping AIP if not imposing a fee for it. Credit officers are overworked and the bank cannot easily find sufficient credit officers to handle all the extra workload. In the end, the higher cost of applying for AIP would be pass on the consumers.

In summary, to apply for AIP for The Hillford Condo in Jalan Jurong Kechil, you can visit any of the banks in beauty world plaza or beauty work centre. But, please do not apply for more than 3 AIPs as this will impose heavy workload from the credit officers

The Hillford Condo

The Hillford Loan Structure

The MAS has impose an absoulute limit for any property purchase in Jalan Jurong Kechil Condo. There will be an absolute limit of 35 years for the term of the borrowing. This rule will apply to both individual and nomiee borrows.

Also, the Loan-To-Value limit will be different for Jalan Jurong Kechil Condo. 1st time buyers who have not purchased a property before will have a LTV limit of 80-20. This essentially means that the buyer will be allowed to loan 80% from the bank. The rest of the 20% will have to be paid for by The Hillford Condo buyer.

Out of the 20% downpayment. 5% will have to be paid for by cash. The remaining 15% can be utilized by the CPF.

As the new absolute limit of 35 years for mortage loan is new, some buyers may attempt to refinance the loan for Hillford Condo to lengthen the property loan. For example, a buyer who has bought a condo and applied for a 30 year loan might attempt to refinance for another 30 year loan after holding the original loan for 10 years. This will add up to a total of 40 years which is above the 35 years absolute limit for any property loan.

Therefore, when a borrower applies for a refinancing facility for any outstanding balance of a property loan, the sum of the tenure for the original loan as well as the new refinanced loan must not exceed 35 years