Are your assets working for you? Expanding your business or seizing an attractive investment opportunity for yourself or your loved one? DBS AssetLine is a secured* overdraft facility which gives you the financial freedom and flexibility to pursue your financial goals. Get access to ready funds with DBS Bank, the Asian Bank of Choice! With our competitive interest rates, it is one valuable option to manage your cash flow.
* Security may be provided in the form of property / fixed deposit / structured deposit / single-premium policy.
Here's a step-by-step guide to how you can access cash from your property.
Step 1: Understand more about AssetLine
Many people take out a home equity loan to take advantage of the equity in their home. You can then use the money for purchases, standby credit, and other expenses.
Here's what you enjoy with AssetLine:
- Flexible repayment with no prepayment penalty
- Competitive interest rate
- Checking facility
- Easy access to funds through ATM/NETS, Phone or Internet Banking
Note: Credit facilities are granted at the Bank's discretion
Step 2 : Qualify for AssetLine
Credit assessment checks that you will be subject to upon your request for a loan:
- Proof of regular income (e.g. Income Tax Notice of Assessment / latest computerised payslip / CPF contribution statement for the last 12 months)
- Credit bureau checks (e.g. Good payment records for credit cards / previous or existing loans, no previous blemishes such as discharged bankrupts)
Further checks and conditions may be imposed by the bank, and the terms of the formal offer will also depend on the property that you intend to buy.
Two main criteria banks use to access your loan eligibility:
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Financial Commitment-to-income Ratio
A computation of your total monthly debt obligations (e.g., other home loan commitments, car loan, overdraft facilities, etc) to your total monthly gross income. This is to determine your repayment ability.
As a rule of thumb, your total financial commitment for loans per month should not exceed 40% of your household income.
-
Loan-to-value (LTV) ratio
The amount of loan on a property in relation to its value expressed in percentage. The maximum LTV at which banks in Singapore may finance your first property is 80% of the purchase price or property's current market value whichever is lower.
As a rule of thumb, your total financial commitment for loans per month should not exceed 40% of your household income.
Factors that determine the LTV:
- Use of property for owner-occupation or investment
- Existing loan(s)
Step 3 : Obtain a Formal Valuation of the Property Current Indicative Value (CIV) from the Bank
The Bank will provide an indicative value of the property from its panel of approved valuation companies.
You have to ensure that the following details provided are correct for an accurate indicative value:
- Address of property
- Property type (landed, condominium, others)
- Land / built-in area
- Freehold / leasehold (999 years / 99 years)
- Renovation (how much was done and when)
- TOP Date
- Age of property
For the list of details required, please refer to Your Dream Home Checklist.
Step 4: Apply to the bank for AssetLine
For the bank to process your loan, you will need to submit these documents:
- Application Form
- Mortgage Application Form
- CPF Documents
- Contribution History up to the last 12 months
- Income Documents
- Latest Income Tax Notice of Assessment or
- Latest computerised payslip or
- Latest 2 years Income Tax Notice of Assessment (only applicable to self-employed/commission based customers)
- CPF Residential Withdrawal Statement(s)
Additional documents may be requested on a case-by-case basis. Upon approval of your application, you will receive a Letter of Offer (LO)* from the Bank, stating the details such as loan amount, tenure and terms and conditions. Before signing the LO, you should ensure that you understand its contents entirely, as it becomes legally binding upon acceptance.
Once you have accepted the LO*, the Bank will then instruct the law firm and valuation company to proceed with the necessary mortgage documentation and valuation report respectively.
A caveat^ will be lodged by your lawyer with the Singapore Land Authority against the property.
| * |
An LO is a formal offer of housing loan from the bank, setting out the terms and conditions governing the housing loan offered therein. |
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A caveat serves as a public notice that the person lodging it is claiming an interest in the property, and it will lapse 5 years from the date of lodgement, unless it is discharged or renewed. |
Next Steps
- Call us, email us or SMS "Home<space>Name<space>NRIC" to 76060 for customised rates
- Email us
- Request a consultation
- Calculate your estimated monthly mortgage instalments
- Get our home loan application checklist for the documents you will need
- Download an application form
- Submit your cpf statement online.