Q & A for Housing Loan

Below are question asked by some of my client and i hope that this will answer your query too...

1) What is Approval In Principle (AIP) or others call it In Principle Approval (IPA)?

It is a verbal agreement by the bank, showing the amount they are potentially prepared to lend to you, based on your financial ability and the credit history. It is not a guarantee, but it do help customer to gauge the range that the bank is able to finance them and to choose a property of that range.


2) Does all bank give the same amount for AIP/IPA?

No, different bank set different criteria. It varies throughout the banks.


3) What is the difference between Repricing and Refinancing?

Repricing mainly is to negotiate a better rate within the same bank while refinancing is to switch a bank for a better rate


4) What is the difference between going straight to the bank and getting a Mortgage Broker to serve me?

There are more than 10 banks / Financial Institute in Singapore, 0.10% - 0.2% makes a difference on the interest you paid yearly. If Bank A only sell Sibor package, Banker A will tell you that Sibor Package is best and others cant fight them .
For Mortgage Broker, we consolidate rates from almost all banks in Singapore , source the best rate for you and tailor it to suits your risk level.
Moreover, we do quarterly / half yearly review on customer package to determine if they require a switch of bank.


5) Do we have to pay Mortgage Broker for their Service?

Most bank remunerate brokers for their service and normally broker service are FREE (unless otherwise stated)


6) Since the bank is paying Mortgage Broker , will Mortgage Broker still source us the Best rate in the Market?

Mortgage Broker are remunerate based on a percentage of the loan, getting you the best package wont affect their commission, so in order to get more repeat customer and referrals, Mortgage Broker will source you the best rates, based on your risk taking level.

7) What are the basic documentation required for Approval In Principle (AIP)?
1) CPF OA account (CPF website –> My Statement -> Section A <print this section>)
2) CPF Contribution History ( CPF website –> My Statement -> Section B )
3) CPF Property Withdrawal Statement (CPF website –> My Statement -> Section C -> Property - > My Private Housing Withdrawal Details)
4) 2 years income tax & 3month payslip (IRAS Website -> Correspondence & Notices -> Individual Income Tax (Letter/Notices) -> Letter/Notices -> Notice of Assessment (Individual)
5) IC copy front n back
6) HDB Declaration  Will need an additional document for processing more than 60% financing for Singaporean and SPR - Please go to HDB's website athttp://www.hdb.gov.sg/MyHDBPageto do a screenshot, to show that you do not own any HDB or have any HDB housing loan currently. (Under 'My Flat > Purchased Flat > Financial)
7) Signed Application Form
8) Credit card/Personal Loan/ Car Loan /Overdraft etc Statement (record under Credit Bureau) (upon banker request)


8) What are the basic documentation required for a financing of property?

For New Purchase,

1) CPF OA account (CPF website –> My Statement -> Section A <print this section>)
2) CPF Contribution History ( CPF website –> My Statement -> Section B )
3) CPF Property Withdrawal Statement (CPF website –> My Statement -> Section C -> Property - > My Private Housing Withdrawal Details)
4) 2 years income tax & 3month payslip (IRAS Website -> Correspondence & Notices -> Individual Income Tax (Letter/Notices) -> Letter/Notices -> Notice of Assessment (Individual)
5) IC copy front n back
6) HDB Declaration  Will need an additional document for processing more than 60% financing for Singaporean and SPR - Please go to HDB's website athttp://www.hdb.gov.sg/MyHDBPageto do a screenshot, to show that you do not own any HDB or have any HDB housing loan currently. (Under 'My Flat > Purchased Flat > Financial)
7) Signed Application Form
8) Option To Purchase / Sale & Purchase Agreement
9) Credit card/Personal Loan/ Car Loan /Overdraft etc Statement (record under Credit Bureau) (upon banker request)


For Refinancing,

1) CPF OA account ( CPF website –> My Statement -> Section A <print this section>)
2) CPF Contribution History ( CPF website –> My Statement -> Section B )
3) CPF Property Withdrawal Statement (CPF website –> My Statement -> Section C -> Property - > My Private Housing Withdrawal Details)
4) 2 years income tax & 3month payslip (IRAS Website -> Correspondence & Notices -> Individual Income Tax (Letter/Notices) -> Letter/Notices -> Notice of Assessment (Individual)
5) IC copy front n back
6) HDB Declaration Will need an additional document for processing more than 60% financing for Singaporean and SPR - Please go to HDB's website athttp://www.hdb.gov.sg/MyHDBPageto do a screenshot, to show that you do not own any HDB or have any HDB housing loan currently. (Under 'My Flat > Purchased Flat > Financial)
7) Signed Application Form
8) Loan Repayment Statement
9) Credit card/Personal Loan/ Car Loan /Overdraft etc Statement (record under Credit Bureau) (upon banker request)
10) Previous Letter of Offer



If you have any question unsolved, you can either get me via my Mobile at 9 1 7 6 7 9 7 0 or email me at den@housingmatters.com.sg or even drop a comment below :

Den Ng
Housing Matters
http://www.housingmatters.com.sg