Learned something ! Thx. Give you a 
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edskh78 ( Date: 05-Nov-2009 09:38) Posted:
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If you fully repay your loan now, you can remortgage it for cash out, with the current bank or another bank assuming the following conditions are met.
1) It is a completed private property.
2) Your CPF Used + New Cashout Loan is max = 80% of current indicative valuation. Most banks are up to 70%, but got 1 bank is up to 75% (subject to certain conditions) and another up to 80%.
Upon taking a cashout loan, you got to take note that you can only service the loan using cash and no longer CPF.
Instead of doing the way you proposed, an easier option is to just simply ask your current bank to reprice your current package, or if the package is not attractive, you can refinance your loan to another bank. This will allow you to continue using CPF (if the original loan was for the purpose of purchasing the property and not a cashout loan). If your valuation allows it, you can also apply for a cashout on equity loan, but note that this portion's monthly instalment can only be serviced by cash.
PM me if anyone is interested to do so, as I am a Mortgage Broker.
Note: I have been participating in this forum for some time, and I am just taking this opportunity to share my service since someone has brought up the question. Please do not flame me.
chinton86 ( Date: 05-Nov-2009 01:02) Posted:
| Can i prepay my mortgage loan and ask my banker to redrawn a new loan at a lower interest rate if i have a good record of paying on time during the first 2 years of my 5 yrs loan?
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Thank you for the kind words. Hope many others find it useful as well.
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Very helpful info ! Thanks! |
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This should be the kind of forum .Cheers edskh78 |
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This is what adds 'dynamism' to a forum... 
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If you fully repay your loan now, you can remortgage it for cash out, with the current bank or another bank assuming the following conditions are met.
1) It is a completed private property.
2) Your CPF Used + New Cashout Loan is max = 80% of current indicative valuation. Most banks are up to 70%, but got 1 bank is up to 75% (subject to certain conditions) and another up to 80%.
Upon taking a cashout loan, you got to take note that you can only service the loan using cash and no longer CPF.
Instead of doing the way you proposed, an easier option is to just simply ask your current bank to reprice your current package, or if the package is not attractive, you can refinance your loan to another bank. This will allow you to continue using CPF (if the original loan was for the purpose of purchasing the property and not a cashout loan). If your valuation allows it, you can also apply for a cashout on equity loan, but note that this portion's monthly instalment can only be serviced by cash.
PM me if anyone is interested to do so, as I am a Mortgage Broker.
Note: I have been participating in this forum for some time, and I am just taking this opportunity to share my service since someone has brought up the question. Please do not flame me.
chinton86 ( Date: 05-Nov-2009 01:02) Posted:
| Can i prepay my mortgage loan and ask my banker to redrawn a new loan at a lower interest rate if i have a good record of paying on time during the first 2 years of my 5 yrs loan?
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Can i prepay my mortgage loan and ask my banker to redrawn a new loan at a lower interest rate if i have a good record of paying on time during the first 2 years of my 5 yrs loan?
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