Many of you might have know of this but for those who just got their first property and now aiming for a second this information might be of useful to you. Most of us when getting our first property will get a loan either from HDB or bank, although a small percentage of us will be able to full pay off the property using their CPF and cash but like I say this percentage is really very small.

So when you intend to get your second property (provided you had stay for the min number of years for HDB) chances are you will be getting a loan too since the property now are just too high. SO how much will the bank be able to loan you? Well below are two examples to help you know just which group you are in and how much loan you will be granted.

1) Have an existing loan and still servicing it
Chances are you will be granted only 60% loan as you already have an existing loan. So be prepare to pay up front about 40% which min 5% has to be cash...

2) Paid up first loan
If you had already paid up your first loan then for your second property the bank will grant you a nice 80% loan. This is the standard which most property agents will use in their cash flow calculation.

Also if you have any existing bad debts, you might be subjected to a different loan value or may even be rejected should your bad debts were recent ones. So before you go down and put your deposit always remember to check to see if you are able to purchase your second property and just how much cash/CPF and loan you will be granted.

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