Case Study · Singapore

Short-Term Mortgage Loan Saves Client SGD 2.25 million

24 February 2020

Short-Term Mortgage Loan Saves Client SGD 2.25 million

Rikvin Capital Solves Cash Flow Crisis, Allows Customer to Secure Dream Home on Orchard Road, Singapore

Rikvin Capital has successfully assisted a customer in completing the purchase of a luxurious condominium unit on Orchard Road, Singapore. The individual, who had already made payments of S$2.25 million, encountered an unexpected cash flow issue, which was not fully covered by the local banks’ limited loan-to-value (LTV) of 50%.

In response to the customer’s pressing need, Rikvin Capital stepped in and provided a loan of S$4.3 million, with a loan-to-value of 65%. The loan was structured with a duration of 9 months and a rolled-up payment schedule, paid upon completion. The quick and efficient loan process allowed the customer to complete the purchase of the condominium unit within just 7 days.

Rikvin Capital’s timely assistance provided a solution for the customer’s financial challenges, enabling them to complete the purchase of their dream home in one of the most sought-after locations in Singapore.

Problem

  • An individual was about to complete the purchase of a condominium unit in Singapore.
  • The individual had already made payments of S$2.25 million and was facing an unexpected cash flow issue.
  • The local banks in Singapore were only offering an LTV of 50% which was not enough to cover the outstanding amount.

Solution

  • Rikvin Capital stepped in and offered to cover the full outstanding amount and the customer was able to complete within 1 week.
  • Location: Orchard Road, Singapore
  • Market Value: S$ 6,600,000
  • Loan Amount: S$ 4,300,000
  • Loan-to-Value: 65%
  • Duration of Loan: 9 Months
  • Payment Schedule: Rolled-up, paid upon completion
  • Asset Type: Condominium Unit
  • Completion Time: 7 Days

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FAQ

I have already paid a large deposit but my bank reduced its loan-to-value. Can you cover the gap?

Yes. The Orchard Road case here lent $4.3 million against a $6.6 million condominium in 7 days, after the local bank cut its LTV from the agreed level to 50%. Without our loan, the buyer would have lost a $2.25 million deposit already paid. Bank-pullback bridges are one of our most common urgent deals.

How fast can you fund to save a deposit that is at risk of forfeiture?

7 to 10 working days is realistic, as in this case. For very tight situations we can move faster if you contact us as soon as the bank pulls back. We run KYC, valuation and legal work in parallel rather than sequentially.

What is "rolled-up interest paid upon completion"?

It means no monthly payments. The full interest cost for the loan term is added to the principal and settled at the end. The Orchard Road borrower here used this so they could focus their cash on completing the purchase, with the loan exited once a long-term mortgage was arranged.