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Letter Of Intent For Mortgage for Singapore

Letter Of Intent For Mortgage Template for Singapore

A Letter of Intent for Mortgage is a formal document used in Singapore's property market to indicate a potential borrower's serious intention to obtain mortgage financing from a specific financial institution. The document outlines key terms including the proposed loan amount, interest rate, repayment period, and property details. It must comply with Singapore's strict property financing regulations, including MAS guidelines on TDSR and LTV limits, while adhering to relevant banking and property laws.

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What is a Letter Of Intent For Mortgage?

A Letter of Intent for Mortgage serves as a preliminary step in the Singapore property financing process, bridging the gap between initial discussions and formal mortgage application. This document is typically used when a potential borrower has identified a property and wishes to formalize their intention to seek financing from a specific lender. The letter outlines proposed terms including loan amount, interest rates, and repayment schedule, while ensuring compliance with Singapore's regulatory framework including TDSR limits and MAS guidelines. While not legally binding, it helps establish clear expectations and demonstrates serious intent to proceed with the mortgage application.

What sections should be included in a Letter Of Intent For Mortgage?

1. Property Details: Complete description of the property including address, title details, and property type

2. Loan Details: Proposed mortgage amount, loan-to-value ratio, and repayment terms

3. Interest Terms: Proposed interest rate structure, whether fixed or floating, and applicable periods

4. Borrower Declarations: Statements regarding borrower's financial position and existing commitments

5. Conditions Precedent: Prerequisites and conditions that must be met before mortgage approval

6. Validity Period: Duration for which the letter of intent remains valid

What sections are optional to include in a Letter Of Intent For Mortgage?

1. CPF Usage Declaration: Details of intended CPF funds usage for property purchase or mortgage payments, required when CPF funds will be utilized

2. Joint Borrower Information: Additional details and declarations for co-borrowers, required in cases of multiple borrowers

3. Refinancing Terms: Specific terms related to refinancing an existing mortgage, required in refinancing cases

4. HDB-Specific Declarations: Additional declarations required for HDB properties, including eligibility conditions

What schedules should be included in a Letter Of Intent For Mortgage?

1. Schedule A - Property Information: Detailed property specifications, including floor plan reference and lot number

2. Schedule B - Loan Calculation: Detailed breakdown of loan amount, including TDSR calculations and payment schedule

3. Schedule C - Required Documents: List of documents required for formal mortgage application

4. Appendix 1 - Supporting Documents: Income statements, property valuation report, and other relevant supporting documents

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Singapore

Publisher

Ƶ

Document Type

Mortgage Document

Cost

Free to use
Relevant legal definitions






























Clauses

























Industries

Banking Act (Cap. 19): Primary legislation governing banking institutions and their operations in Singapore, including mortgage lending activities

Moneylenders Act (Cap. 188): Regulates money lending activities and provides consumer protection in credit transactions

Housing and Development Act: Governs public housing (HDB) properties and related mortgage requirements in Singapore

Residential Property Act: Controls the purchase and mortgage of residential properties by foreign persons and companies

Conveyancing and Law of Property Act (Cap. 61): Regulates property transactions and mortgage security interests in real estate

MAS Guidelines: Regulatory guidelines from Monetary Authority of Singapore covering lending practices and requirements

TDSR Framework: Total Debt Servicing Ratio framework limiting the portion of income that can go towards debt repayments

MSR Requirements: Mortgage Servicing Ratio requirements specifically for HDB flats and executive condominiums

LTV Limits: Loan-to-Value limits determining maximum loan amount relative to property value

HDB Rules and Regulations: Specific rules governing mortgages for public housing properties

URA Guidelines: Urban Redevelopment Authority guidelines affecting private property mortgages

Consumer Protection (Fair Trading) Act: Protects consumers' interests in financial transactions including mortgages

Personal Data Protection Act: Governs the collection, use, and disclosure of personal data in mortgage applications and processing

CPF Rules: Regulations governing the use of Central Provident Fund savings for property purchases and mortgages

Stamp Duties Regulations: Rules regarding Additional Buyer's Stamp Duty, Seller's Stamp Duty, and other property-related duties

Property Tax Regulations: Tax requirements and obligations related to property ownership and mortgages

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