I am deciding between two (house) bank loans, both which had been approved recently.

One bank applied with joint applicants (my partner and I).

Another bank recommended single applicant and so I applied using single applicant (only me alone)

What are the repercussions in the future if I opted for the joint applicant? Because I'm thinking it might reduce my commitment by half in bank records if applied for another house loan in the future.

If I opted for the joint applicant, it will be:

Me (Two house loans under my name, because there is an existing first house loan under my name already)

Her (One house loan under her name)

If you can get the loan approved without a second applicant, then go for single applicant.

Joint application will only waste a 90% slot of the second person.

This post has been edited by victorian: Nov 28 2021, 09:34 AM

Yes, your commitment will deem 50% for joint loan however your future residential loan will only cap at 70%so you may consider having your partner to apply instead. Each of us will have 2 quota of 90% margin for residential property.

So, in the future even if she applied for the second housing loan (assuming it's a joint applicant again), it will be capped as 70% because under my name it's considered as third loan even though for her it's a second housing loan?

Yes. LTV % will be capped by either one of the applicant, whichever is lower.

Better split if you can. Joint loan always has a purpose, don't do it for fun.

Mind sharing what is the advantage or purpose of a joint loan?

When one person income is not sufficient for bank's approval, then you need a second person to support it.

A joint loan applicants when one dont have proprietary interest is similar to a 'guarantor'.

If joining name with a partner, one may need to consider a situation where there's a slight tiny touchwood chance splitting-up one day.

So, how would you and her proceed if that happens?
Who is going to pay for the "reimbursement"?

Since you alone are eligible, suggest you to take up the single name loan.
It's your decision.

Join applicant gives you a higher loan limit I think

For every individual name, first and second house is entitled for 90% house loan, 3rd house onwards will be 70% loan

So if you joint name, each will use up one quota, and will effect future loan margin when buy another house, before you settle the previous one.

Name in SPA is the ownership of house, name in loan is the liability and bank record of house payment

In conclusion, depends on your future planning, advisable to proceed with single name SPA and single name loan applicant if can, don't waste quota.
If joint applicant in bank loan, make sure SPA also have name to be fair.

Just my 2 cents tq

Ask your partner to apply if she is eligible. So, you will have another 90% house mortgage quota in future.
Don't waste the quota using 2 names.
In future, you might need for car loan as well if plan to buy new car.

Sorry hijacking this thread for 1 question. I was a joint loan borrower but the property is not under my name. Is that considered my 1st property even though its not my name?

For another housing loan eligibility .... 'yes'