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 Mortgage Loan Package Inquiries, (Strictly NO Promotion Allowed)

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post Feb 13 2015, 04:07 PM

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Hi,

Would like to know how banks assess credit scoring for home loan applicants?

If let say, I want to buy a property that is under construction, to be completed end of 2016:

- I have car loans that eat 16% into my NET income
- I have personal loans that eat 15% into my NET income but the tenures are ending by this year 2015.
- I have a 1st housing loan that takes 9% from my NET income
- I have outstanding credit card debts that totals almost the same as my monthly net income. I projected the outstanding balance will be settled this year 2015 based on my historical trend of repayments.

So my concern is, will bank consider to approve my application and will they factor my commitments that will end this year? Will bank consider that by next year, I will have so much room for the housing loan?

Thanks a lot!
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post Feb 23 2015, 09:56 AM

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QUOTE(kepongA @ Feb 15 2015, 10:01 AM)
Pay off and cancel your credit cards and since your PL is left with small balance, pay off that too. That way your commitment is only HL. You should be able to get financing up to 90% of your net income.

Even if you don't do anything, you should be able to get financing but at lower amount.
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QUOTE(cdspins @ Feb 17 2015, 12:17 PM)
hmm.gif From your description, your credit score may not let you get any or much loan. because total servicing loan should be less than 70% of your income (DSR). I would suggest you clear of both your credit card debt and personal loans first. After that you can get maximum mortgage loan of up to 45% of your income (70-9-16)
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QUOTE(Fat3Twister @ Feb 17 2015, 12:59 PM)
This depends on your income level. Banks have different DSR/commitment guideline for different income range.
Generally it will be around 70%/80% for gross income above 5k, it can go up to 85%/90% for gross income above 10k. For your credit card outstanding, take 5% of the total O/S to become your monthly commitment. If o/s same as your income, then it will be 5% as well. So 16+15+9+5=45%. You do the calculation.
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so meaning, whatever it is, eventhough the tenure for my personal loan and credit card debt are ending soon (aug 2015), the banks still consider that as my 'future' commitment as the house installments only to be served after the house completes? They don't consider my EPF 2nd account, which upon signing SNP, I can use that to offset all current debts?

bro Fat3Twister, 70% - 45% = 35%. so only 35% of my net income or gross income?

anywayyy thanks a lot guys! notworthy.gif
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