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

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