Home Loans Draw Down Process

Getting your first home loan and not sure how the process flows• This guide helps you to learn about the home loan process before applying for a mortgage. By that, you•ll know what to expect and can start preparing on next move.

1. Loan Acceptance

After you signed the loan acceptance letter, your lender will assign a solicitor to kick start the facility agreement. When the document are ready, solicitor will advise you to execute loan documents at their office. Timeline for step 1 minimum 14 days.

2. Legal Documentation

The home loan solicitor will start writing to existing financier, developer and SPA's solicitor and receive reply from respective parties. Apply consent to charge from State Authority if the property is subject to restriction against charging of the property. Conduct land search and lodge bank private caveat for release of redemption sum to existing chargee / assignee for the refinancing cases. Memorandum of Transfer (MOT) must be presented to State Authority for release of balance loan sum for sub-sale cases.

Stamping of home loan documents must be done. Timeline for step 2 minimum 2 months.

3. Valuation of the Property

After you signed the Letter of Acceptance, lender will assign their panel valuation firm to inspect the said property. You will received a call from the appointed valuer for a scheduled appointment to visit to the property. A full inspection will be conducted and photographs of internal and external of the said property are required as proof of inspection. A full valuation report will be forward to lender within 2-4 weeks from the date of inspection. Timeline for step 3 minimum 2 weeks.

4. Loan Draw Down

Your lender will drawdown the loan to vendor / existing financier / developer within 1-2 weeks from the date of receipt of loan solicitor's Letter of Advise for Drawdown and receipt of full valuation report subject to full compliance with the lender's Letter of Acceptance. Initial drawdown is for the redemption of existing financier / chargee bank. For under construction property, the drawdown will be upon receipt of billing from the developer. Upon receipt of original security documents, the balance of loan sum will be release to respective parties subsequently. Timeline for step 4 minimum 1 week.

5. Advices

You will received an advice / notification from lender within 1 month after the drawdown. For under construction property, you will receive progressive billing. For the installment based loan / financing, advice on commencement of instalment will be sent to you. Timeline for step 5 minimum 1 month.

6. Loan Statement

You will received you loan statement from the lender on yearly* or monthly* basis upon conmencement of instalment.

*Yearly statement - conventional home loan and Islamic financing packages.

*Monthly statement - flexi home loan / mortgage and flexi financing-i packages.

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