Cry FOUL!!! Out of Bounds area
Moderators: alvin, learner, Dennis Ng
Dear Chuan Jer,
Yes, banks are wary of lending a loan to a residence in Geylang area. Some banks would have this internal rule that they only lend from "lorong XX upwards". Some other banks simply avoid lending loans to any property in Geylang. As far as I know, Geylang seem to be the only affected area in Singapore.
What should a consumer do?
We suggest that before any consumer commit any cash (eg. upfront 1% option fee) to buying any property, they should first ensure that they can get approval from the bank first. This is regardless of the location of the property.
What you encounter is problem with the "location" iself. Other consumers have found that after putting a 1% option fee, the problem was not with the property but due to other reasons eg. debt-servicing ratio, age and other reasons eg. remaining lease of property too short that they cannot get a bank loan that MEET their needs. It can be bank approving a lower amount of loan than they applied or a complete rejection altogether. They ended up (like your case) forfeiting the option fee they paid.
The good news is ALL these potential problems can be avoided. How? A consumer can simply avoid this problem by emailing to us at info@HousingLoanSG.com or call us at 63399 255 to discuss with us so that we can help them in applying for loan approval before they sign on the dotted line.
P.S. we do not charge a fee for our value-added service. We are paid separately by financial institutions when you apply the loan through us after we provide you an unbiased analysis of ALL Housing Loans packages in Singapore.
Yes, banks are wary of lending a loan to a residence in Geylang area. Some banks would have this internal rule that they only lend from "lorong XX upwards". Some other banks simply avoid lending loans to any property in Geylang. As far as I know, Geylang seem to be the only affected area in Singapore.
What should a consumer do?
We suggest that before any consumer commit any cash (eg. upfront 1% option fee) to buying any property, they should first ensure that they can get approval from the bank first. This is regardless of the location of the property.
What you encounter is problem with the "location" iself. Other consumers have found that after putting a 1% option fee, the problem was not with the property but due to other reasons eg. debt-servicing ratio, age and other reasons eg. remaining lease of property too short that they cannot get a bank loan that MEET their needs. It can be bank approving a lower amount of loan than they applied or a complete rejection altogether. They ended up (like your case) forfeiting the option fee they paid.
The good news is ALL these potential problems can be avoided. How? A consumer can simply avoid this problem by emailing to us at info@HousingLoanSG.com or call us at 63399 255 to discuss with us so that we can help them in applying for loan approval before they sign on the dotted line.
P.S. we do not charge a fee for our value-added service. We are paid separately by financial institutions when you apply the loan through us after we provide you an unbiased analysis of ALL Housing Loans packages in Singapore.
Cheers!
Dennis Ng - When You Master Your Finances, You Master Your Destiny
Note: I'm just sharing my personal comments, not giving you investment advice nor stock investment tips.
Dennis Ng - When You Master Your Finances, You Master Your Destiny
Note: I'm just sharing my personal comments, not giving you investment advice nor stock investment tips.
Dear chuan jer,
yes, I agree with you on why should a consumer be not "forewarned" by the developer and the property agents, they should put a "warning sign" at the development that you are looking at:"Please note that you might not be able to get a bank loan if you purchase this property."
Even if they don't put a sign, they should verbally warn people.
What I understand is that that particulat location you purchase used to be OK, it's only recently that the "red light zone" has been extended to that area and as mentioned, banks typically do not grant loans to financing any property in Geylang designated "red light zone".
Like I mentioned, what you encountered is a "location problem". Others might have to forfeit their option money (just like you) when they cannot get a bank loan to meet their needs eg. this might be due to their debt-servicing ratio, remaining lease of property and other factors.
The ONLY sure-proof way to "avoid" having Option money forfeited is for consumers to first call us at 6339 9255 or email us at info@HousingLoanSG.com and we help them get an in-principle approval from the bank before consumer put down any option money.
We'll help people have the peace of mind in putting down option money by getting pre-approval for bank loan before they put down option money. Help us to spread the message to others who might make a similar mistake without knowing this.
yes, I agree with you on why should a consumer be not "forewarned" by the developer and the property agents, they should put a "warning sign" at the development that you are looking at:"Please note that you might not be able to get a bank loan if you purchase this property."
Even if they don't put a sign, they should verbally warn people.
What I understand is that that particulat location you purchase used to be OK, it's only recently that the "red light zone" has been extended to that area and as mentioned, banks typically do not grant loans to financing any property in Geylang designated "red light zone".
Like I mentioned, what you encountered is a "location problem". Others might have to forfeit their option money (just like you) when they cannot get a bank loan to meet their needs eg. this might be due to their debt-servicing ratio, remaining lease of property and other factors.
The ONLY sure-proof way to "avoid" having Option money forfeited is for consumers to first call us at 6339 9255 or email us at info@HousingLoanSG.com and we help them get an in-principle approval from the bank before consumer put down any option money.
We'll help people have the peace of mind in putting down option money by getting pre-approval for bank loan before they put down option money. Help us to spread the message to others who might make a similar mistake without knowing this.
Cheers!
Dennis Ng - When You Master Your Finances, You Master Your Destiny
Note: I'm just sharing my personal comments, not giving you investment advice nor stock investment tips.
Dennis Ng - When You Master Your Finances, You Master Your Destiny
Note: I'm just sharing my personal comments, not giving you investment advice nor stock investment tips.
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Guest
Dear Chuanjer,
I know it really hurts to lose thousands of dollars this way, I would too as it's hard-earned savings. I applaud you for standing up to be interviewed by Sunday Times because you do not want other people out there to "lose money" as you did.
As mentioned in my previous posts, what you faced was a "location" problem, there're other circumstances when a person's application for Housing Loan was rejected. Thus, we also shared with Sunday Times 30 July 2006 in a separate article "Don't be a Home Loan reject" (page 18 and page 19) to "alert" the public of these other possible dangers of being rejected a Home Loan.
What's the solution? Like I mentioned, the solution would be before anyone commits to buy ANY property (be it HDB or private property), they should approach http://www.HousingLoanSG.com (call us at 6339 9255 or email us at info@HousingLoanSG.com for us to help you seek PRIOR approval of bank loan. As you know, we do not charge a single cent for our service (we're paid by banks separately when loan application is successful). Thus, EVERYONE in Singapore has nothing to lose and everything to gain by engaging our service.
By doing this, they would NEVER risk losing any money committing to buying a property but cannot secure a Bank Loan.
Rest assured that we will also do our part to continue with PUBLIC Financial Education so that more people are "empowered" with financial knowledge so that they can avoid some mistakes, reduce/eliminate their risks and make an INFORMED decision.
I know it really hurts to lose thousands of dollars this way, I would too as it's hard-earned savings. I applaud you for standing up to be interviewed by Sunday Times because you do not want other people out there to "lose money" as you did.
As mentioned in my previous posts, what you faced was a "location" problem, there're other circumstances when a person's application for Housing Loan was rejected. Thus, we also shared with Sunday Times 30 July 2006 in a separate article "Don't be a Home Loan reject" (page 18 and page 19) to "alert" the public of these other possible dangers of being rejected a Home Loan.
What's the solution? Like I mentioned, the solution would be before anyone commits to buy ANY property (be it HDB or private property), they should approach http://www.HousingLoanSG.com (call us at 6339 9255 or email us at info@HousingLoanSG.com for us to help you seek PRIOR approval of bank loan. As you know, we do not charge a single cent for our service (we're paid by banks separately when loan application is successful). Thus, EVERYONE in Singapore has nothing to lose and everything to gain by engaging our service.
By doing this, they would NEVER risk losing any money committing to buying a property but cannot secure a Bank Loan.
Rest assured that we will also do our part to continue with PUBLIC Financial Education so that more people are "empowered" with financial knowledge so that they can avoid some mistakes, reduce/eliminate their risks and make an INFORMED decision.
Cheers!
Dennis Ng - When You Master Your Finances, You Master Your Destiny
Note: I'm just sharing my personal comments, not giving you investment advice nor stock investment tips.
Dennis Ng - When You Master Your Finances, You Master Your Destiny
Note: I'm just sharing my personal comments, not giving you investment advice nor stock investment tips.