Few things learnt today about leveraging of housing loan.
1) Buy with individual name, rather than both couples name. eg. if housing loan limit is 80%, then buy 2 houses and each down payment 20% only.
2) Term loan, maybe more effective way to cash out than selling the property.
Term Loan Example:
Assume you bought a property in the year 2008 for $500,000 and the property is now worth $900,000. You are now able to take additional cash out from a bank in a form of an equity or term loan for up to 70-80% of the current market valuation, less the remaining loan amount (if any) and any CPF used (if any).
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