i have a question about bank which offers loan that comes with 3 years lock in period or 5 years lock in period. assuming a person is buying a high rise from a developer, he is taking a loan with 3 years lock in period (and it takes 3 years for the construction). note that during the construction period, developer bear the interest. it takes 3 years for the high rise to be completed. my question is, after 3 years (upon completion of the building), can this person refinance without any penalty? which means the 3 years period starts counting at the moment when the person take the loan or it will be 3 years after the building in completed?

usually counts from the date you sign the document. but to be clear, u must speak to the bank as their terms and conditions are the ones that tie you down.

when you sign on the dotte line, no point referring to other references if shit happens.

When you take the loan, you will owe the bank money. The bank will be responsible of paying the developer the house value.
If you refinance your property during the "lock in" period, you need to pay the penalty depending on the terms and conditions of your housing loan.
You are free to refinance after the "lock in" period expires without any penalty.

I tot bank start counting your lockin period when you get VP???

Banks being financial institutions will definitely make $$$. It doesn't make sense if they didn't make any profit from your loan.
Make sure you understand the terms and conditions from the bank and developer.

This post has been edited by wchinwai: Jul 2 2010, 10:28 AM

i suspect something like tat too...anywhere we can verify?

Check your load agreement; use to be the 'locked in period' starts on VP but lately, some banks (OCBC) starts on 1st disbursment

Personally, I have heard one that even start from loan approval month (SCB), really have to be careful with all the terms and conditions, one way they are trying to entice people to their bank, on the other end, they need to cover your own S offering something drop-jaw deals

check on your Letter Offer, it can be either from 1st disbursement, or full disbursement.

also take note on this, i've encounter some LO previous from a bank which commences on the date of acceptance of the LO (meaning the date you signed the LO itself) previously.

my advice bout lock-in periods: the soonest it starts the better, and no lock-in is the BEST! =)