Banks conduct thorough financial "check—up" on applicants for home loans
SINGAPORE: Housing agents said clients who are applying for home loans have to be prepared for a thorough financial "check—up" by banks.
Other than normal criteria such as age and income levels, banks are also said to be scrutinizing and sensing out signs of trouble through one’s credit ratings.
Hence, those who might have defaulted their monthly loan repayments or have made cash advances from credit cards might just be in for a disappointment.
For those who are lucky enough to get their loans granted, experts claim that banks are not as generous as before.
Housing agents revealed that only 10 per cent of their clients managed to secure 90 per cent of the requested loan, compared to nine out of 10 previously.
With signs of stresses in the job market, banks also seem set on cutting their risks and are no longer that keen on holding on to non—performing loans.
Ghazali Safrain, executive director, CityHomes Real Estate Group, said: “If people have a salary of A$2,500, chances of getting a loan was very easy last year and the year before but now, even if your salary is S$3,000, you might have difficulties in getting a loan.”
Muhammad Azzad Ahmad, head, Loan Business (Direct Banking) Maybank, said: ”We do have to look at each credit case a little bit more in detail. So for example with the current market downturn, there are several industries, companies and individuals being affected. So we have to look at person’s occupation, age and even educational background.” —CNA/vm
SINGAPORE: Housing agents said clients who are applying for home loans have to be prepared for a thorough financial "check—up" by banks.
Other than normal criteria such as age and income levels, banks are also said to be scrutinizing and sensing out signs of trouble through one’s credit ratings.
Hence, those who might have defaulted their monthly loan repayments or have made cash advances from credit cards might just be in for a disappointment.
For those who are lucky enough to get their loans granted, experts claim that banks are not as generous as before.
Housing agents revealed that only 10 per cent of their clients managed to secure 90 per cent of the requested loan, compared to nine out of 10 previously.
With signs of stresses in the job market, banks also seem set on cutting their risks and are no longer that keen on holding on to non—performing loans.
Ghazali Safrain, executive director, CityHomes Real Estate Group, said: “If people have a salary of A$2,500, chances of getting a loan was very easy last year and the year before but now, even if your salary is S$3,000, you might have difficulties in getting a loan.”
Muhammad Azzad Ahmad, head, Loan Business (Direct Banking) Maybank, said: ”We do have to look at each credit case a little bit more in detail. So for example with the current market downturn, there are several industries, companies and individuals being affected. So we have to look at person’s occupation, age and even educational background.” —CNA/vm
