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Got prior indication from bankers that I could loan up to 80% of the property I am interested.

Signed OTP and paid 5%. Later on the banks came back and said I could not take up to 80% because I only started working in this new company for about 7 months.

Big gap now since the loan amount is much smaller than plan.

What is the consequences if deal can not be fulfilled?

Thanks,
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6 Answers

Hello Mr Lee!

Good day to you!
I’m Daniel Tan from Huttons.

I am sorry to know that. Did you manage to get an In-Principle Approval (IPA) done before committing?

Most likely you have gotten a unit from the new launch; if you choose no to continue with the purchase, you will forfeit 25% of your initial 5% deposit. This will work out to 1.25% of your purchase price.

Any other queries?
Please always feel free to contact me for a non-obligated discussion on how I can assist you with your real estate needs.

Have a great day ahead.

Best Regards

Daniel Tan
Huttons Asia Pte Ltd
 (+65) 94775100 
daniel.tck@outlook.com Read More
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  • DL
    Thanks Daniel.

    I am really surprised with the answer from you. Some parties are telling me I will lose the 5%, plus possible to also need to pay for the differences should the seller sold it at a price lower than mine ! I may also need to pay for any re-marketing expenses.

    If the above is correct, I could lose big because I have no control over who the seller will sell to, and at what price the seller is selling ...

    Is that correct?
Hi Dan,

Have you only been issued with the Option To Purchase or you have already exercised the Option To Purchase at the lawyer's office?

The information you have provided is insufficient for a definite answer here. 5% could be the booking fees at a new launch project or adds up to the amount paid until the stage where you exercised the Option To Purchase in a resale arrangement.

Up to the point where you have not exercise the Option To Purcase, it is not too bad as you only stand to lose the deposit or part of it depending on type of property purchase. In the event where you have exercised the Option To Purchase at the lawyer's office, the situation is more serious. Have you spoke to any other bankers and see if they are able to come in and help?

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Morning,

IPA from banks are only valid for a period of not more than 3 months and is subjected to changes when your income and credit status varies at point of loan application.
Your agent should have provided you with the appropriate advice accordingly before signing the Option.
As of now, before you have exercise the Option, you can only opt to the owner and hope that they are willing to refund you the option fee and void the OTP. Else, you will be likely to lose the Option fee if you are unable to obtain sufficient funds.

FYI
Mike Lim
 96929209 
m52i@yahoo.com
ERA Read More
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Robbie Chen Chee Howe
Hi Dan,

If you had gone for a developer new launch unit, and your finances does not allow you to exercise the OTP, you will have to forego the unit and forfeit 25% of the deposit that you had already paid.

It is always advisable to get an in-principle approval from a qualified banker before committing to any property purchase.

Should you need any further assistance in matters relating to property, please contact me at my mobile 9748 6305  . I will be happy to assess and share with you the possibilities for you in the current market.

Thank you.

Best regards,
Robbie Chen
 9748 6305 
PropNex Realty Read More
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Hi Mr Dan

Have you paid your Stamp duty ?

Also I believe this is from resale market ?

Look for a good mortgage broker or look for other banks including Hong Leong Finance or other finance companies and see if they can grant you the loan.

Different banks have different loan criteria so you might still get your 80% loan

Best of luck

You can contact me if you need someone to speak to.

Lim Kah Seng

HP: 83333222  Read More
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GAN ENG JOO ONASSIS
Dear Dan,

Re: Today’s SG Professional Choice- SGAgent.com & SGRealtor.com

Will recommend you to appeal to the housing loan bank to revise their decision to help you to proceed with the purchase. Nothing more since $$$ is the main issues.

Do not reply to this thread as we will not be alerted to any response posted on this thread. Get in touch with me via email or through my mobile.

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