Friday, October 02, 2009

Property purchase update #2

DBS finally got back to me with their mortgage approval in principle, giving me all the terms which I asked for.... except that they will only lend me 50% of the purchase price instead of the 60% which I applied for. Apparently I have reached the bank's limit for aggregate advances to an individual customer which means that all future advances will be limited to 50% of property value. much as I like the service which DBS provides I may need to consider using other lenders next time. This also tells me that DBS is a very conservative institution as the total balance of my outstanding loans with them is, in the over scheme of things, a fairly insignificant amount (although a lot of money to me).

The resulting shortfall in funding was largely covered by the decision to sell all of my actively managed funds earlier this week. The balance of the shortfall will be covered by deferring part of the first installment of the renovation costs and the agent's commission on the purchase until the beginning of October when I get my next salary payment. Both the contract and the agent have agreed to this.

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