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Writer's pictureJackson Tan

Creative Financing Methods


Summary


1. Refinancing

Husband (Owner + Borrower) and Wife (Owner but no borrower. So that max 75% loan for next property)


2. Guarantor Techniques in Commercial

O + B + G (use company name)


3. Gearing/ Term Loan

TL Amount = 75% of valuation - Outstanding Loan - CPF

* Subject to TDSR. Service using cash. Only after TOP/CSC


4. Enhanced OPM Method (99-1%)

Helping couple to own 2 properties with TDSR

* No using of 1 pax CPF for 1st property. Do not max out loan amount. Reverse strategy


5. Stretching of tenure

Stretch up to 75 years old instead of 65 years. Max 35 years.

*For new launch, after TOP/CSC. For resales, 1 year later


6. Pledge & Unpledged

Pledge is 4 years in bank. Amount get from Propnex Calculator


7. Asset Planning Calculator

Lower MMI for new launch progressive stages


8. Part-Share Decoupling

Step 1: Buyer side.

50% of new valuation + 50% of existing loan = Outstanding new loan

D/P of new loan + BSD.

Step 2: Seller side.

50% of new valuation minus 50% of existing loan minus CPF used = Cash proceed


9. Trustee

*Avoid ABSD. Cash only. Like Endowment with force saving plan. Can sell after 3 years so that next buyer eligible to take loan.


10. New Launch (Special case 99-1 for loan)

Son buy first without CPF. Father buy 1% from son and take full loan.

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