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1.6m to a high earner is " affordable " .

(02-04-2013, 04:58 PM)egghead Wrote: [ -> ]What I find scary is the loan of $1.6m - never taken such a big loan in my life.

I personally cannot imagine any loan greater than $500,000. Then again, that's just me.

(02-04-2013, 05:11 PM)Musicwhiz Wrote: [ -> ]

(02-04-2013, 04:58 PM)egghead Wrote: [ -> ]What I find scary is the loan of $1.6m - never taken such a big loan in my life.

I personally cannot imagine any loan greater than $500,000. Then again, that's just me.

Must admit not many has the capacity to qualify or service this sizable loan. But it is definitely peanut to our beloved ministers, they don't even need to take such small loan.

There will still have this absd for pple wanting to buy second property notwithstanding loan for first property is fully paid.

there are 2 sides now, long on low interest rates, or short.

If ur long on low interest rates, u WILL loan as much as you can, as long as you can pay the interests repayments...
that's why UOB was clever to start the now defun, 50 yrs home loan...

If ur short... well.. ACCUMULATE cash for firesales!

(02-04-2013, 05:36 PM)cfa Wrote: [ -> ]

(02-04-2013, 05:11 PM)Musicwhiz Wrote: [ -> ]

(02-04-2013, 04:58 PM)egghead Wrote: [ -> ]What I find scary is the loan of $1.6m - never taken such a big loan in my life.

I personally cannot imagine any loan greater than $500,000. Then again, that's just me.

Must admit not many has the capacity to qualify or service this sizable loan. But it is definitely peanut to our beloved ministers, they don't even need to take such small loan.

1-2 years back a banker told me I was eligible for >900k housing loan. My income is not to shout about, below what many top SMU fresh grads are drawing.

I was amazed to the extent of scared. Nearly 1m! I wouldn't have dared to take up the loan. How could the bank be confident that I could repay when I myself am not? Maybe the bank is confident that the property market can only go up and would be all too ready to liquidate the mortgage.

Therefore, until such a time that a debt service ratio is enforced, I believe majority of young graduates up to 2 years of employment history could qualify for a 500k housing loan.

(03-04-2013, 12:33 PM)bb88 Wrote: [ -> ]

(02-04-2013, 05:36 PM)cfa Wrote: [ -> ]

(02-04-2013, 05:11 PM)Musicwhiz Wrote: [ -> ]

(02-04-2013, 04:58 PM)egghead Wrote: [ -> ]What I find scary is the loan of $1.6m - never taken such a big loan in my life.

I personally cannot imagine any loan greater than $500,000. Then again, that's just me.

Must admit not many has the capacity to qualify or service this sizable loan. But it is definitely peanut to our beloved ministers, they don't even need to take such small loan.

1-2 years back a banker told me I was eligible for >900k housing loan. My income is not to shout about, below what many top SMU fresh grads are drawing.

I was amazed to the extent of scared. Nearly 1m! I wouldn't have dared to take up the loan. How could the bank be confident that I could repay when I myself am not? Maybe the bank is confident that the property market can only go up and would be all too ready to liquidate the mortgage.

Therefore, until such a time that a debt service ratio is enforced, I believe majority of young graduates up to 2 years of employment history could qualify for a 500k housing loan.

Good news for you. I have spoken to my banker recently. The banks has tightened the lending criteria and period in view of Govt cooling measures.