Just last week, we released an article on SCB relaxing its total debt servicing ratio (TDSR) rules. Today, we are going more in-depth into how SCB is making refinancing easy for homeowners like you and I by offering a TDSR wavier. We think that the easy refinance with SCB option is good news for homeowners. That’s because it is going to help a lot of homeowners manage your mortgage and cash flow issues, especially for those who had their pay cut or were retrenched.
We anticipate more banks may follow suit, do check with us here. https://icompareloan.com/contact
Image 1 – Man signing easy refinance with SCB (Photo from Pixabay),
TDSR Waiver for Refinance With SCB: Why Is It Good For Homeowners?
The easy refinance with SCB is meant to help property owners by introducing full TDSR waiver for refinancing. Under this easy refinance with SCB, your TDSR doesn’t have to fall within the limit of 100% of your monthly income. SCB is letting homeowners with good credit score to increase their TDSR to as high as 2,000%.
Plus, even if you don’t have any existing income, you can also do the easy refinance with SCB. This lets you lower your monthly interest repayment on your mortgage by refinancing to a lower interest rate package with SCB.
But there is a caveat. In order for you to get the easy refinance with SCB to increase your TDSR, there are certain criteria that you need to meet.
TDSR Waiver Refinance With SCB: How To Qualify?
In order to qualify for the easy refinance with SCB, here are some of the criteria that you need to meet.
Property Value Below $4 Million
Firstly, your loan size needs to be below $4 million for the property. This should apply to most homeowners who are living in apartments. Well, the good thing is that you can refinance as many number of properties as you want to SCB. So, if you have two properties that are both below $4 million in value, you can do the easy refinance with SCB for both properties.
Exemplify Good Credit Standing To SCB
The next criterion you need to fulfil is to show that you are have a good credit standing. According to SCB, you need to have prompt mortgage repayment for the last 12 months on your home loan. Your loan also needs to be at least running for the last 24 months (or more).
In addition, you also need to show that you do not have any outstanding credit card loan. You will need to show that you have fully paid for the last 12 months of your credit card bills through a credit report (e.g. credit bureau report).
Check out why a good credit report is important to secure a good home loan.
Loan-To-Value Needs To Be Below 70%
The easy refinance with SCB option does come with some restrictions for the loan-to-value (LTV). SCB has set a limit of 70% for the LTV. If you are taking up a home equity loan, the LTV ratio is lowered to 60%. In addition, you cannot take out any additional home equity loan from your existing property. The easy refinance with SCB scheme does allow you to refinance to SCB for your existing home equity loan if you meet the LTV requirement.
TDSR Waiver Refinance With SCB: Do I Have To Take Up A Debt Reduction Plan (DRP)?
Sometimes, you find that banks will ask you to pay off a portion of your mortgage before they allow you to refinance. This is especially if you have reduced income or no longer have income.
For example, the bank might ask you to make a 3% debt reduction plan (DRP) where you have to pay 3% of the debt in cash. Once you take up the DRP, they will then allow you to refinance.
Well, this easy refinance with SCB is not the case. Regardless of whether your property is owner-occupied or an investment property, you do not have to take up a DRP.
Who Is Suitable For TDSR Waiver Refinance With SCB?
So, who are suitable to opt for this TDSR Waiver refinance with SCB? Well, we think that this scheme is a good option for a number of groups of people.
Firstly, foreigners who are looking to refinance should definitely consider the easy refinance with SCB. Secondly, those who have a good credit standing should think about refinancing because SCB is offering interest rate as low as 1.27% when you refinance. That’s a real steal if you ask us. Thirdly, if you are a retiree who don’t really have a stable income to rely on, you can use this chance to refinance out of your expensive home loan package.
How To TDSR Waiver Refinance With SCB?
If you are one of those who are looking for easy refinance with SCB, you will want to know how to do the refinancing. As the refinancing is done through partners, the easiest way for easy refinance with SCB is to do it through a partner like iCompareLoan. Simply enquire with us right now and we can help you start the process of refinancing with SCB.
Remember, the earlier you kickstart the easy refinance with SCB, the more you can save on your monthly mortgage repayment.