Hi forumers,

Need your advice on housing loan. Sorry for my English.

Currently I have a joint loan with my father for a landed house. I'm not paying for the house as my father already rented it. Now I'm planning to get a second hand house under my name But I don't have enough savings to pay for the deposit and lawyer fees.

My husband hAve a landed house under his name. So what he suggested was to transfer the loan to my name and he would get cash. With that cash he said we can buy a house under his name. I'm not sure if this method wil work. We planned to get a second hand house and rent out my husband's unit later on. Please advice if this method wil work or any other suggestion. Thank you in advance

couple of questions:-
(a) do you want the second house to be under your name?
(b) do you want your husband's house?
© are you going to buy your second house under joint name or solely?
(d) how does he propose to transfer a loan? (example sale the house to you and you purchase?)
(e) your husband's house is it more than 5 years already?

How about getting your husband to refinance his property and to buy the house under your name with the extra cash from the refinancing.

(a) I wanted but since I already have joint loan with my dad, I don't think I can get new house under my name. Furthermore my salary won't be enough to pass loan

Income consideration aside.
The 2 house rule applies to financing. The first two property you own, the bank can finance up to 90%. If you intend to get a third house, you will be subject to 60% financing. This effectively means you have to cough out another 40% in CASH.


(b) I don't want the house but i have no choice then getting the house transferred under my name
If you do that, that would effectively mean your husband will sell the house to you and you buy from him. You will need to apply for a bank loan and get your bank to redeem your husband’s housing loan before you can transfer the house in your name. The documentation, legal fees and stamp duty will defeat the cost you are attempting to save.

In fact, re-financing your existing properties would be a much more feasible alternative.

© I'm not buying the second house. After transfer loan to my name my husband wil buy the hse under his name. Solely
Then my suspicion is confirmed, this is a sale and purchase arrangement.

(d)Yes, sale and me purchase
Noted.

(e) He bought it on beginning 2011
You will be slapped with Real Property Gain Tax, if your husband attempt to sale you the house above the purchase price he paid for.

Conclusion:-
It is highly probably that your method will not work and you will not enjoy any cost savings, unless you go for re-financing.

Thanks for gettinf back to me.

Our first option was to refinance the house but my husband's commitments are too high so banker said loan won't get approved. Hence my husband told me abt the second option which i don't think wil work as well.

quote=aurora97,Dec 9 2015, 12:00 PM]
(a) I wanted but since I already have joint loan with my dad, I don't think I can get new house under my name. Furthermore my salary won't be enough to pass loan

Income consideration aside.
The 2 house rule applies to financing. The first two property you own, the bank can finance up to 90%. If you intend to get a third house, you will be subject to 60% financing. This effectively means you have to cough out another 40% in CASH.
(b) I don't want the house but i have no choice then getting the house transferred under my name
If you do that, that would effectively mean your husband will sell the house to you and you buy from him. You will need to apply for a bank loan and get your bank to redeem your husband’s housing loan before you can transfer the house in your name. The documentation, legal fees and stamp duty will defeat the cost you are attempting to save.

In fact, re-financing your existing properties would be a much more feasible alternative.

© I'm not buying the second house. After transfer loan to my name my husband wil buy the hse under his name. Solely
Then my suspicion is confirmed, this is a sale and purchase arrangement.

(d)Yes, sale and me purchase
Noted.

(e) He bought it on beginning 2011
You will be slapped with Real Property Gain Tax, if your husband attempt to sale you the house above the purchase price he paid for.

Conclusion:-
It is highly probably that your method will not work and you will not enjoy any cost savings, unless you go for re-financing.

[/quote]

I note your husband's commitment and banker's comment.

If your husband somehow manage to reduce or if you require a [urgent] solution, re-financing would be most cost effective solution.

Thank you so much. Really appreciated