Home loans for Indonesians up to 75% without proof of income in Singapore
Who should read about asset based lending?
For Indian citizens earning above 8k a month in SGD equivalent in their home country buying a property in Singapore or refinancing a property for Maximum Singapore dollar CASH, so that you can invest in better yield.
It is also extremely powerful for: -
Singaporeans earning a joint income above 8k a month and buying a second property, but who already has several financial commitment, this scheme is able to gracefully over-look the other commitments.
For Singaporeans buying their 1st property, and able to put down a 25% downpayment. The loan quantum available to them can be substantial, allowing them to leverage highly.
Singapore Banks Asset Based Lending Criteria
What about the criteria for Asset Based Lending Mortgage?
Most banks in Singapore lend based on criteria such as debt to servicing ratio. The usual debt servicing ratio is capped at 50% to 60%.
This 50% to 60% debt servicing ratio is what the bank would lend at the maximum, not a financial planning guideline.
Only some banks in Singapore will do asset based lending for your property with minimum income.
Asset based lending is rare. Banks see it as risky. Most often, banks need you to put assets under management (AUM) of $250,000 or 24 months of repayment amount (whichever is higher), plus income level.
Typical Singapore Asset Based Lending
Someone with a fully paid up property valued at $3.2m. He goes to the bank to borrow 50% of $3.2m. He gets $1.6m in cash for an equity term loan (Cash out). The bank will usually want to see proof of liquid assets of 24 months of the installment amount.
illustration of a scenario: -
Age of owner = 50 years old
Property valuation = $3,200,000
Loan to value = 50%
Loan tenor = 20 years
Interest rate = 1.5%
Loan amount = $1,600,000
Monthly Installment = $7,720
In this scenario, the owner would most likely be asked to show proof of 24 months of monthly repayment in liquid assets of $185,280.
A Better asset based lending loan structure in Singapore
This type of Asset Based Lending goes up to 70% or 75% of the loan-to-valuation.
This type of asset based lending with high Loan quantum is good for Singaporeans buying 2nd or 3rd properties. This structure is also good for Foreigners refinancing their paid up property for CASH OUT.
Scenario: Indonesian, 50 years old, paid up property, earns $25,000 SGD worth of income, but in his own country.
Property Valued at = $6,000,000
Status = Fully Paid up
Loan-to-value of = Can to up to 70% (up to 75% subject to approval)
Loan tenor = up to 25 years
Loan amount = $4,200,000
He will be eligible to borrow up to $4,216,000 based on his asset and some proof of income instead of $2,529,000.
Most rich people have a lot of money, but they like to borrow money, because using other people’s money is a way to grow rich. His borrowing quantum goes from $2.529m to $4.216m. Cash is freed up at cheap cost (housing loan borrowings are the cheapest form of borrowing) to invest in higher yielding assets.
Here are the facts of this loan
Age = up to 75 years old
Tenor = up to 40 years
Min Income of $8,000 joint income
Documents required for Asset based lending
NRIC = front and back copy. (For foreigners who are NON-PR, copy of passport)
Income = Proof of income via Company letter only (or alternative proof)
As long as income certified by Financial officer or Human Resource, it is recognized
OR
3 Months salary slip
OR
2 years of Notice of Assessment (NOA) – from IRAS.
Existing home loan balance (if any)
= 6 months to 12 months bank statement showing outstanding loan amount. (if fully paid, copy of title deed)
Option to purchase = Required for a New purchase of a completed property. (Not needed if
refinancing)
Contact : loans@propertybuyer.com.sg
Mobile (sms) : +65 9782 8606
Get Asset Based Lending home loan
Get Asset Based Lending Refinance Home Loan
If you are a Singapore Mortgage Broker, do contact us, we will avail this to you and your clients. (Only for Mortgage Broker and Consultants)
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