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About Us

About Us

Welcome! Dream Home Loan Brokerage Pte Ltd

After 18 years in the banking industry, it makes me feel guilty whenever I have to convince myself that what I am recommending is the best among all banks.

I have to remind myself that I am given a salary and therefore, I have to hit my KPI in order to continue working in the bank and to receive my monthly income.

What We Offer

Some of Our Services

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Home Loans / Commercial Property Loans (New Purchase & Refinancing)

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Decoupling

Cashout

Term Loan (Cashout)

Bussiness

Business Loan

Frequently Asked Questions

If you have any questions which aren’t displayed here, please contact us and we’ll be glad to assist!

How Much Can I Borrow To Buy A House?

When determining how much you can borrow, lenders will use your monthly gross income and monthly commitment such as Car Loan; Personal Loan; Education Loan etc for computation. For Private Property, it has to pass the TDSR (Total Debt Service Ratio) at 55% of your Gross Income. Which also means that your total monthly commitment including the new mortgage, cannot exceed 55% of your monthly Gross Income. As for HDB Property, it has to pass both TDSR and MSR (Mortgage Service Ratio) at 30%. The loan assessment also takes into consideration of your Credit Bureau record.

What is a Bridging Loan?

Bridging Loan is a Short term loan of up to 6 months. It helps to pay for the down payment of your new property purchase (less off 5% of the mandatory cash down payment), while waiting for the sale proceeds of your existing house. You will only need to pay the interest on the Bridging Loan during its loan period. 

How is the Loan Tenor determined?

Depending on the Loan to Value Ratio that one would like to borrow, you can simply use 65 or 75 to minus away the borrower’s present age, in order to obtain the Loan Tenor. This is in the case of a single borrower. Do note that for properties that are older (e.g with balance Lease of 40 years), you may not be able to obtain the maximum loan tenor based on the tabulation above, as lenders will require at least 25 years of balance lease left after the loan duration has been served completely.

In the past, for cases with more than 1 borrower, the Loan Tenor is based on the age of the youngest applicant. However, since MAS announced on 5 July 2018 as part of a package of measures to cool the property market and keep price increases in line with economic fundamentals, the Income Weighted Average Age (IWAA) was introduced.

How is the IWAA calculated?

(Age of younger borrower x gross monthly income) + (Age of older borrower x gross monthly income) / (Gross monthly income of younger borrower + Gross monthly income of older borrower)

Scenario 1: The income of the younger borrower is higher then the income of the older borrower. Borrower A is 28 years old who earns a gross monthly income of $5,000. Borrower B is 35 years old who earns a gross monthly income of $3,000.

IWAA = (28 x 5,000) + (35 x 3,000) / (5,000 + 3,000) = 31 (Round Up)

Outcome: IWAA is lower.

Scenario 2: The income of the younger borrower is lower then the income of the older borrower. Borrower A is 28 years old who earns a gross monthly income of $3,000. Borrower B is 35 years old who earns a gross monthly income of $8,000.

IWAA = (28 x 3,000) + (35 x 8,000)/(8,000 + 3,000) = 34 (Round Up)

Outcome: IWAA is higher.

Based on the above scenarios, it is generally better for a younger borrower to earn more than an older borrower as it will result in a lower IWAA (31 years vs 34 years). The lower your IWAA, the tenor that can be obtained will be longer. Therefore, it also means that you are able to obtain a higher loan amount since it is stretched over a longer period for the loan repayment.

What is LTV?

The LTV dictates the amount you can borrow from the bank. Having an LTV ratio of 55% allows you to borrow up to 55% of the property’s value or price, whichever is lower.

Example based on single Mortgagor and Borrower:

Assuming you are applying for your first property loan at 35 years old (at application), take the 65-year cap (if your borrowing is at 75% LTV) and subtract it with your current age. The remaining loan tenure you’ll be eligible for is 30 years for a private property loan and 25 years for a HDB bank loan (assuming it’s your only property loan after taking it up).

Note that the balance 5% downpayment must be paid in cash while the remaining 20% can be paid via cash and/or CPF.

What is the difference between a Joint Tenancy and a Tenancy in Common?

A joint Tenancy is where the Property is held in equal proportions. Example: Husband and Wife has equal share of 50 / 50 towards the property co-owned.

A Tenancy in Common is where one can hold 1% of Shares on the Property co-owned while the other party holds 99% of the Property co-owned.

What is a Part Purchase?

Part Purchase is when the shareholdings or ownerships of an existing property is to be restructured.

Example:
Existing: 2 owners of 50% Share each

New Arrangement to be restructured:
1 existing owner to buy over the share of the other so that the property is under one Mortgagor / Borrower only. Vice Versa can be apply but it is termed as Decoupling.

Is a Lock in Package better then a No Lock in Package?

A Lock in Package does not allow one to do a Partial Prepayment or a Full redemption towards the Principle Outstanding Loan amount during the Lock in Period. By doing so, there will be a penalty on the amount prepaid or redeemed which range from 1% – 1.5%. Thus, it will be good to discuss with an expert with regards to the package most suited for you.

NEWS

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SINGAPORE

HDB changes criteria for putting SERS flats on resale market; minimum occupation period of 5 years required

The Housing and Development Board (HDB) has adjusted its criteria for when buyers of replacement flats under the Selective En bloc Redevelopment Scheme (SERS) will be able to sell their units on the open market.

For SERS sites announced on or after Apr 7, buyers will only be able to sell their replacement flats five years from the date of collecting their keys, according to HDB’s website.

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Private home owners will now have to wait 15 months after they sell their property before they can buy an HDB resale flat.

SINGAPORE

Singapore introduces property cooling measures, with stricter borrowing criteria and tighter limits for HDB loan

SINGAPORE: The Government unveiled a slew of property cooling measures on Thursday (Sep 29), aimed at moderating demand and ensuring prudent borrowing amid rising interest rates.

The measures, which come into effect from Sep 30, include tightening the maximum loan quantum limits. For HDB loans, the loan-to-value (LTV) limit has been lowered from 85 per cent to 80 per cent.

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