How do we assess if we are eligible for more housing loan

[beet007]

Hi Dennis,

Currently, our 2 properties are being financed by rental income from both the properties, meaning, we do not have to fork out any of our income to service the loans. If we are keen on getting a third property for own stay, and keep the monthly loan repayment to within 35% of our income, will the bank lend us any cash, considering we have already taken two home loans?

We intend to take a 70% loan for the third property. How do we check the max amount we can borrow? I suppose the bank will look at how much our existing loans are, and how much is our income, right?

We have always been on time for all our loans and credit card payments, so that means we have good credit records, right?

In view that the property prices have gone up substantially, is it wiser to get a HDB or private property for our own stay now? If it's HDB flat, which has the best investment value, 4 room or 5 room or executive unit?

Thanks.

[Dennis Ng]

Hi Dennis,

Currently, our 2 properties are being financed by rental income from both the properties, meaning, we do not have to fork out any of our income to service the loans. If we are keen on getting a third property for own stay, and keep the monthly loan repayment to within 35% of our income, will the bank lend us any cash, considering we have already taken two home loans?

We intend to take a 70% loan for the third property. How do we check the max amount we can borrow? I suppose the bank will look at how much our existing loans are, and how much is our income, right?

We have always been on time for all our loans and credit card payments, so that means we have good credit records, right?

In view that the property prices have gone up substantially, is it wiser to get a HDB or private property for our own stay now? If it's HDB flat, which has the best investment value, 4 room or 5 room or executive unit?

Thanks.

Hi beet007,

in actual fact, banks can lend up to 50% debt-service ratio. 35% is a Prudent guide to comfortably pay for loan instalments.

yes, if you're prompt in payments, you have good credit records. To check your own credit records, just go to www.Creditbureau.com.sg to pay S$5 to buy your own Credit Report.

Buying a house for own stay, the main considerations is affordability. I think in terms of HDB flats, the type that price has gone up the least are the bigger units, such as the executive apartment/maisonette. However, you should also consider your needs, do you need so much space?