30 April, 2007

No Bonding Loan

Due to the abolition of Real Property Gain Tax, the liquidity of the property is greatly increase. what is the impact of such annoucement to the banking and financial institution?

Usually, common loan packages have two types. There are with minimum bonding period of 5 years and without bonding constraints. No doubt, the former offer a better rate which can get a leverage interest through the loan tenure. Without bonding contract, the interest rate will be higher. This is understandable as financial institution wanted to get profit through the loan offer.

Since property trading is getting more liquid and property buyer will prefer to take loan which without bonding period constraint, as this provides more freedom on settlement of loan.

In view of the situation, i think Banker is going to adjust or come out with a new package which will focus in NO BONDING loan package.

Keen to know how good the offer will be.