Step 1: Derive Your maximum loan Borrowing Capacity.
There are TWO key factors to determine the maximum loan amount:
a) TDSR (Total-debt-servicing-ratio): The new mortgage repayment & your other existing loan monthly commitment should not exceed 60% of your combine income. If the subject property is an investment property with minimum 6 months balance lease, this portion of income could be included into the total income.
b) Maximum Loan-to-valuation (LTV):
i) Only ONE residential property mortgage - 80%
ii) Second residential property mortgage - 50%
iii) Third & Above residential property mortgage 40%
Once you know your maximum loan borrowing capacity, you can always work backward to derive your budget for new property purchase
save your time & effort. Let MxRICH calculate for you.
In-principle Approval from at least 1 bank
Step 2: Apply for IPA (In-principle-Approval)
It is an important step. With a written IPA from bank will give you a peace of mind for securing a mortgage and avoid unnecessary lost of booking fee. We always ask our client do not underestimate this step especially under stringent regulation and check in bank.
We will recommend you a few bank packages based on your criteria, and assist you on the documentation and follow up with respective banker.
Normally, IPA only last for 1 month. Any annoucement of new regulation, IPA will always become obselete.