Didn’t end up meeting banker coz she says got restrictions and can’t meet…but informed me that everything can be done online these days and verified via singpass instead of signature. Oh right COVID days calls for government sanctioned improvisations. Well done. 

That call itself was otherwise not very informative. She didn’t do homework prior to calling (imagine still asking me if the property is going to TOP or if it’s a completed property….girl…). She also don’t sound particularly interested, I am not sure if that really bothered me but okay, maybe it’s better that way. Downside is that I got thrown off a bit too so there’s maybe a couple of questions I didn’t ask like prepayment penalties. But I did find out the rates got a bit lowered yesterday and I think that makes my decision to go with them easier. 

To be honest everybody’s rates are not that dissimilar (for instance, 0.1% difference is probably a difference of $15 per month, ok it adds up but in the grand scheme of things it’s not that bad?) so I think it’s down to the other loan features which…if I am honest I am a bit tired to compare. Which is supposed to be a major no no but…I don’t know man. 

That said, agent did hook me up with another banker from SCB who is I think more enthusiastic, but I think the rates don’t match up well so yep. 

Speaking of agent, I think it’s another classic case of sneaky truths coming out after money received - maybe it’s an error on my part too (can’t blame me, noob and too many things to watch out for and just one pair of eyes and one brain) but was told that owner is not obliged to ensure that everything is working well when handing over. Which means I should have checked when I viewed, for instance, whether aircon is working, microwave/oven is working, heater is working etc. Sucks for me if they are in need of repairs. I think even if I had checked previously and they are not working, owner is not obliged to repair them and I am to, as they say, buy with open eyes. So in that sense nothing changed in that I still have to repair them, whether or not I have factored it into my decision. 

So hoping that don’t have to burn pockets for these. But for records sake, thinking of changing strategy a bit to “taking note of the conditions so that they remain more or less the same when handing over” - agent reassured me saying that “the sellers are decent people and will continue to keep the conditions proper” but I obviously can only take your word for it right? It’s not as if I even had a chance to speak to them, much less knowing they are not that type. But to be frank their track record shouldn’t be shabby based on the current condition of the place la. 

Tomorrow - finalize loan package and get banker to work, and start talking to lawyer. 

8/6/21 

Did not anticipate this turning into a daily post, lol. 

What happened today is just finalizing loan package. Texted banker, no reply, so after a couple of hours I just called. Either really busy or just lack of urgency but basically confirmed with her I wanted the 3 year fixed rate package, and asked to go through all the package features. To which she was quite impassioned, to put it lightly, informing me that basically the only feature is the one time free conversion (which all packages have). No waiver of prepayment penalty, most certainly no freebie. Why I asked is because I randomly saw online on their website on the existence of freebies like gift cards, but was told those are for refinancing customers only - I think she could offer but lots more work or something because the freebies aren’t actually free la haha. It has to be deducted from your loan amount or something. Ok whatever. 

Years down the road I will probably rethink if a mortgage specialist is needed when it comes to refinancing, but I think so far it looks manageable without one. Because I really don’t see too much difference in rates, and special features. But if it’s free then maybe. 

Informed agent of my choice, and asked for her contacts for lawyer which she offered previously, pending my choice of bank because each bank supposedly have their own panel lawyers? Something like that. And basically she got a price that included charges for stamping services (don’t remember the exact line, but it’s something she kept reminding me to ensure that the lawyer I engaged include this instead of it becoming a hidden charge), at about $2500 all in. Which is roughly similar to what I estimated so am fine with that. Then basically she helped to initiate contact with said law firm so I just have to sit back and wait to be touched base. 

9/6/21 

Things continue to move. 

Lawyer called me early morning in the middle of a number two attempt oops. Got some deadlines clarified - Tue/Wed latest to execute the OTP, so should get loan approved by this week. So set up an appointment on Tue PM, yay I shall apply leave. 

Informed banker of law firm choice and appointment date, and by early afternoon, she had gotten loan approved (I like to think my spanking clean record helped, coz it sounded too easy) and churned out a letter of offer for my reading. Followed up with a call (thank god for WFH, I can’t imagine settling this in office, then again, would probably take time off on a regular working day to visit them in person if life were normal) for her to go through the terms, picked up a few more nuggets of info in the process which my research did not uncover. 

First of which is the appointment of a valuation firm by the bank. Ok makes sense, but in the end this is more of a formality because bank will value the property at your purchase price, which makes things less complicated. Unless something is very wrong la e.g. bank value it at less than your purchase price, which bank will then lend you less (because 75% loan is based on the lesser of purchase price and property value). It’s even worse (and unlikely because the seller would have checked beforehand before pricing) if bank somehow values it at a higher cost. Ok let’s not get there. 

But have to fork out $160.50 for the valuation service. Urgh. 

Second is that bank mandates a fire insurance policy as part of the loan. Had always thought fire insurance comes under the MCST, but apparently this is not double payment - in short, MCST protects their own interests in the event of a fire (insurance covers exterior repairs and stuff) and bank protects their own financial interest (read up, it means banks can make claims if the fire results in failure to service the loan). Ok I also need to process this further but seems like nothing out of ordinary. Damage - about $100 per annum. 

Sigh, all this costs do add up. We haven’t even gotten to maintenance fees, property taxes, etc. 

Finally prepayment only incurs penalties if it’s within the first three years (somewhat like refinancing) and there is a certain amount of loan outstanding (can’t remember, need to reread the offer letter. Gosh these are important documents aren’t they). 

Accepted offer, and final letter should be churned out by tomorrow and it’s off to the lawyers.