Is An Uptick In Mortgage Applications Good News For Homebuyers?

February is still cold and snowy, but millions of potential homebuyers will find the low mortgage rates quite heartwarming. Bankrate’s national survey of lenders found the rates ending in January 2021 at an all-time low, while the Mortgage Bankers Association noticed an upswing in mortgage applications. It seems people are lining up to take advantage of the ongoing low-interest rates. Is this the right time for you to make a move in the housing market? Will this trend last for a while for the borrowers to save thousands on their mortgages?

Market updates


Things in the real estate market did not look so bright even at the beginning of 2021. Battered by the COVID-19 pandemic and ensuing economic recession, people were cautious about applying for home loans. But applications rose 8.15% for the last week of January after slackening for two weeks straight. The same week also witnessed an 11% surge in the refinance index – the highest since March 2020.

According to HousingWire data, the average mortgage rates for 30 and 15-year fixed and 5/1 adjustable rate mortgages have decreased in the week ending on January 29. This slight drop came after a little upturn touching around 3% in the previous weeks.

The rates are still pretty low for investors to make a move right now. With the rolling out of the COVID vaccination and several government steps for returning to normalcy, the rates are unlikely to be at multi-decade lows for the rest of the year.

The experts don’t predict a major surge in the rates anytime soon. However, taking prompt action provides investors with the benefits of the current low rates.

Sources: Housingwire.com & Bankrate.com

Singaporean businessman needed $24 Million in a very short time frame to purchase a real estate asset.

The Client

Our client is a successful Singaporean businessman with investments around the world.

He needed $24,000,000 to purchase an existing real estate asset that was being sold by his friend at significantly below market value but in a very short time frame.

The Solution

Our team identified the client’s needs and found a Family Office in Hong Kong to fund the loan within 2 weeks.

  • Borrower: Singaporean
  • Occupation: Businessman
  • Age: 69
  • GCB Value: $30,000,000 (CBRE)
  • Loan Amount: $24,000,000 (80% Loan to Value)
  • Funded in 2 weeks
  • Interest Roll-up: 6 months (no mortgage payments for 6 months)
  • Interest-Only Mortgage Payments (starting in Month 7): $160,000 per month
  • Gross Loan Proceeds to Borrower: $23,040,000

Compared to a Typical High-Value Loan: 3.50%, 10-year amortised, Principal+Interest

= $237,000 per month

vs $160,000 per month = $77,000 per month savings with GMG SG BRIDGE

Loan Details

Loan TypeProperty ValueLoan AmountLTVGMG Program
Refinance / cash out$3,450,000$1,500,00043%GMGUS Bridge 1
Loan TypeRefinance / cash out
Property Value$3,450,000
Loan Amount$1,500,000
LTV43%
39%GMGUS Bridge 1

Singapore PR uses GMG bridge loan.

The Client

Singapore PR with a penthouse condo in Sentosa.

The Property

Luxury penthouse condo in Sentosa valued at S$9m.

The Deal

To secure S$3,500,000 to buy out client’s business partner.

The Challenge

Client’s business struggled over the past couple years and showing cash flow was a challenge. This situation was only temporary as buying out his business partner and merging with another entity would provide significant income in the following year.

The Solution

GMG's solution, in the form of a bridge loan, was to get an asset based loan which didn’t look at the current client’s financials but took into consideration the business plan once the buyout and merger was completed.

Loan Details

Loan TypeProperty ValueLoan AmountLTVGMG Program
Bridge - cash out$9,000,000$3,500,00039%GMGSG Bridge
Loan TypeBridge - cash out
Property Value$9,000,000
Loan Amount$3,500,000
LTVup to 80%
39%GMGSG Bridge

Singapore real estate investors eyes U.S. property in California for higher yield returns.

The Client

Senior Singapore attorney and real estate investors looking to shift his real estate portfolio for multi-family U.S. property in California for retirement income.

Purchase of three multi-unit homes in Venice Beach (2) and Long Beach (1), California with net yields of 16%.

The Property

A luxury two bedroom Washington Square condo within walking distance to NYU.

The Deal

To secure the yield needed, the client needed a mortgage below 5%.

The Challenge

Although the client earned excellent income, and experienced real estate investor the lack of U.S. credit created a road block each time he approached a California bank or broker for financing.

The Solution

As GMGFN Lite allows the borrower to use a “local” credit report, this case his Singapore credit report the issue of not having U.S. credit was resolved. The rate required was merely an adjustment in LTV, giving the borrower a fixed rate on each property below 5%.

Loan Details

Loan TypeProperty ValueLoan AmountLTVGMG Program
Purchase$4,350,000 $2,697,000 62%GMGFN Lite
Loan TypePurchase
Property Value$4,350,000
Loan Amount$2,697,000
LTV62%
GMG Program GMGFN Lite

UK citizen living in Hong Kong expands his US Real Estate portfolio with only 25% down using only the income generated from the property.

The Client

British Marketing Director living in Hong Kong. Owns several small properties in the Atlanta area, and wanted to add to his holding in US real estate.

The Property

4 bedroom, 3 bath, 3200 sq. ft home with a pool in Orlando, Florida.

The Deal

The client needed to release equity from two of his existing properties in Atlanta to get the down payment for the purchase of a new Florida property.

The Challenge

The main challenge we had was the client was already in contract and the loan was declined by an international bank two weeks into the process due to DTI (debt to income) issues.

The Solution

As GMG is a super broker, we were able to immediately see the issue, discuss the options with the client on affordability. Once it was understood the client intended on using this property as an investment, GMG was able to structure the loan using only the rental income to service the debt. Existing two rental properties were refinanced in sync with the closing of the purchase.

Loan Details

Loan TypeProperty ValueLoan AmountLTVGMG Program
Refinance and Purchase $675,000 $506,250 75%GMGFN Lite
Loan TypeRefinance and Purchase
Property Value$675,000
Loan Amount$506,250
LTV75%
GMG ProgramGMGFN Lite

Northern California Multi-Unit Rental Property Purchase With A Complex Income Structure.

The Client

A self-employed real estate investor with a British passport living in Hong Kong. He owned and managed a small boutique investment firm and wanted to diversify his holding in U.S. real estate.

The Property

A self-employed real estate investor with a British passport living in Hong Kong. He owned and managed a small boutique investment firm and wanted to diversify his holding in US real estate.

The Deal

The client needed to raise capital in order to purchase the three unit property. To raise the money, the client wanted to refinance/cash out their existing 4 bedroom beachfront rental property lowering their current rate for a 5 year ARM which was maturing in 6 months and get into a lower rate fixed mortgage.

The Challenge

The main challenge we had with this case was that the client had a complicated income stream. The income from the business was extremely “lumpy” and although the total earned income was high, the consistency was sporadic. This made the accounts difficult to interpret and created a mortgage experience with a well-known international bank to drag out three months to eventual be declined in the end.

The Solution

Although the clients’ business was very niche in his field, he had been running this successful firm for over a decade with an exceedingly good accounts track record. We were able to highlight the stable business history to the lender, structure the income documentation in a clear and precise manner in order to satisfy the lender. The lender subsequently released the equity portion from their other property, and approved the loan on their new purchase.

Loan Details

Loan TypeProperty ValueLoan AmountLTVGMG Program
Refinance and Purchase $1,875,000 $1,312,000 70%GMGFN Lite
Loan TypeRefinance and Purchase
Property Value$1,875,000
Loan Amount$1,312,000
LTV70%
GMG ProgramGMGFN Lite

Singapore Business Owner Uses A GMG Bridge Loan To Maintain Liquidity While Awaiting A Contract To Be Completed.

The Client

Singapore PR with a maritime business uses GMG Bridge Loan to purchase equipment to service whilst awaiting an international government contract.

The Property

Luxury penthouse condo in District 9 with a current SG bank loan.

The Deal

To secure S$4,000,000 to purchase new equipment required for a large and lucrative contract.

The Challenge

Client had decreasing cash flow and liquidity needed to obtain a standard Singapore bank loan nor could he wait for the lengthy underwriting period required. He needed immediate funds to take advantage of a business opportunity which would expand his business. Current loan was with a local Singapore bank and required a three month redemption notice.

The Solution

GMG reached out to our family office network to secure a first position loan. Assisted the client to liaise with the bank holding his mortgage to get an immediate release. Closed the transaction with 6 working days giving the client the required funds needed to purchase the equipment and secure the contract.

Loan Details

Loan TypeProperty ValueLoan AmountLTVGMG Program
Bridge Cash-Out $7,000,000 $4,000,000 57%GMGSG Bridge
Loan TypeBridge Cash-Out
Property Value$7,000,000
Loan Amount$4,000,000
LTV57%
GMG ProgramGMGSG Bridge

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