By MoneyBees
Work out how much cash you can borrow against your private home under MAS rules: 75% or 45% of the valuation less your loan and CPF used, whether TDSR applies, and the instalment.
A loan secured on a home you own, where you borrow against the value you have built up. Banks call it an equity or cash-out loan; MAS calls it a mortgage equity withdrawal loan.
The equity loan, the loan still owed on the same home and the CPF you used on it together may not exceed 75% of the current valuation, or 45% if you have a housing loan on another home.
Not if the equity loan plus the other loans on the same home come to 50% of its valuation or less. Above that, your total monthly debt payments must stay within 55% of your income.
35 years under MAS rules. Banks may set shorter tenures or age limits of their own.
MAS does not allow mortgage equity withdrawal loans on HDB flats and executive condominiums still within the minimum occupation period.
MAS counts the CPF used on the home in the loan limit, because it must be refunded to your CPF account with accrued interest when you sell.
No. CPF can only be used for housing loans, and an equity term loan is not one.
MAS treats a refinanced equity loan as an investment property loan, so the investment property loan rules apply.
Junxiong-WFG Organisation is an authorised representative of AIA Financial Advisers Private Limited (Reg. No. 201715016G).