Depending on requirements, Property Loan may serve several objectives; financing new property purchase; refinancing your existing property loan; or gearing-up on your existing property loan.

To refinance means to replace your existing property loan with another property loan with the same quantum (outstanding loan amount) from either the same or different lender with preferably better terms or interest rates.

To gear-up means to replace your existing property loan with another property loan with a larger quantum than the outstanding loan amount from either the same or different lender with preferably better terms or interest rates.

Gearing-up

Client A has a commercial property that is currently valued at S$1 million.

Client A purchased the property for S$700,000, 5 years ago. To pay for the property, the client paid S$200,000 cash and took up a property loan of S$500,000.

Over the last 5 years, Client A has made monthly repayment for the property loan and today, the outstanding loan amount is at $350,000.

Today, Client A requires S$400,000 in cash for an urgent business opportunity and decided to unlock the value of its commercial property by taking up a geared-up property loan from IFS Capital.

Since the property is now valued at S$1 million, IFS Capital offered Client A an S$750,000 property loan (75% of Loan-to-Value Ratio) and the proposal was accepted by Client A.

S$350,000 out of the S$750,000 will be used to pay off the existing property loan with the previous lender and Client A will receive about S$400,000 in cash, allowing him to pursue this new business opportunity.