Yes, you must notify the FHS of your intention to top up your mortgage with a Participating Lender, and the FHS must confirm that it does not object to the mortgage top-up as a part of the mortgage top-up application process.
The FHS may object to a top-up application for one of two reasons:
- If the top-up has been sought for a purpose other than one of those listed below:
- Home improvements
- Medical
- Educational needs
- To redeem (buy back) the equity share partially / in full
- Post top-up if you do not meet the FHS’ requirement to retain an equity interest of at least 10% of your home’s estimated open market value.
Yes. If you are seeking a top-up to make a partial or full redemption of your First Home Scheme Equity Share, the FHS must confirm that is does not object to the mortgage top-up and will provide you with a letter of no objection.
You must arrange for a full valuation of your property by an FHS-approved valuer. This valuation is used to calculate the redemption amount, which we will confirm to you in a letter of no objection.