Category Archives: Loan / Mortgage / Finance

20% of HDB loan applicants asked for larger loans

There were about 200,000 qualified applications for an HDB Loan Eligibility (HLE) letter from 2012 to 2015, revealed National Development Minister Lawrence Wong during a parliamentary session on Tuesday (1 March), reported Channel NewsAsia.

Flat buyers need to request for an HLE letter before they can obtain an HDB concessionary housing loan for their flat purchase.

Of this figure, 20 percent, or 40,000 of those who applied for the letter, appealed for a higher mortgage. Most did so to increase their housing options without stating an exact loan amount. Mr Wong was responding to a query from Non-Constituency MP Leon Perera.

“Over one in three of such appeals were successful,” he said in a written reply. The rest were not granted as the applicants could not prove that they have the resources to repay the larger loan.

“As a flat purchase is a long-term financial commitment, it would not be prudent for potential home buyers to take on additional financial burdens that they are unable to sustain,” he added.

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UOB suing over inflated housing loans

Singapore’s High Court has allowed United Overseas Bank (UOB) to proceed with legal action against two property agents, five individuals and Lippo Marina Collection (LMC), a subsidiary of Lippo Group, reported The Straits Times.

The defendants are being sued by the bank for their alleged failure to disclose the lavish furniture rebates offered by the developer to buyers of 38 apartments at the Marina Collection condominium.

UOB claims that because they were not informed about the rebates, they granted a higher loan amount to the condo buyers. Otherwise, they would have cut the mortgage quantum.

For example, the buyer of a $5.98 million unit was given a furniture rebate of $1.78 million. But the purchaser got a bank loan of $4.79 million, which is higher than the actual sales price of $4.2 million.

The bank also alleged that the distorted prices for the 99-year leasehold units infringed on the mortgage rules introduced by the Monetary Authority of Singapore (MAS). It also claimed that the buyers do not have the financial capability to repay the loans, as 37 of the 38 loans are already in default.

Countering UOB’s claim, LMC said the responsible parties in a housing loan agreement are solely the buyers and the bank. In addition, it had no knowledge of the misrepresentation of the actual sales price.

The two property agents also jointly denied the accusation that they conspired to deceive the bank. They said UOB’s vice-president of housing loans at the time was cognisant in all matters relating to the buyers’ mortgage applications. Hence, it cannot be said that the bank was not aware.

http://www.straitstimes.com/singapore/courts-crime/uob-gets-nod-to-sue-over-inflated-home-loans-for-sentosa-cove-condo