Free advice/discussion on buy/sell of Resale flat (Part 6)

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zensushi

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So my combined gross income is $6000.
HDB loan is $400,000.

Based on HDB calculator, my monthly mortgage is $1815.

Taking 30% of 6000, it would be $1800.

Does this mean I only have to top up $15/month in cash?



Hi brightside!


The MSR is the limiting figure in this case.

Strictly speaking, your monthly mortgage is capped at $1800.


Working off that figure, with a loan-to-value (LTV) of 80%, 25 years loan tenure & 3.5% interest (MAS standardized benchmark rate),

your maximum loan limit it $359,552


The total purchase value would be $449,440


You can purchase a higher-priced unit if you have more cash/CPF to top up the difference (maximum loan is the limiting factor) or are eligible for any grants.
 

brightside

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Hi brightside!


The MSR is the limiting figure in this case.

Strictly speaking, your monthly mortgage is capped at $1800.


Working off that figure, with a loan-to-value (LTV) of 80%, 25 years loan tenure & 3.5% interest (MAS standardized benchmark rate),

your maximum loan limit it $359,552


The total purchase value would be $449,440


You can purchase a higher-priced unit if you have more cash/CPF to top up the difference (maximum loan is the limiting factor) or are eligible for any grants.

Sorry but I don't quite understand. Possible to point me to some resources for reading?

I used hdb' loan estimation tool and was estimated to be eligible to up to 400k loan.
 

zensushi

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Well, if you are using the HDB Calculator to enquire on Mazimum Loan & the figure generated was $1815, then that's the amount you would have to pay.

The mortgage payment can be paid using CPF &/or cash.
 

brightside

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Yes that wass the tool i used to estimate my maximum loan.

Therefore my next question is, based on this diagram,
financing_4rm.png


why can't the monthly installment be paid off entirely with cpf?
 

zencro

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Yes that wass the tool i used to estimate my maximum loan.

Therefore my next question is, based on this diagram,
financing_4rm.png


why can't the monthly installment be paid off entirely with cpf?

Don't think you have enough CPF monthly to pay off the entire mortgage?

You only have $1,495 per month available in CPF to pay the mortage as indicated in the diagram
 

mahcosg

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Hi guys. Just exercise my otp by submitting 4k to seller agent. Btw, otp contract is kept by seller agent?
 

xiaobuaya

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Hey guys, when applying for bank loan for resale hdb, do you guys choose a few banks and apply ?
Or just choose 1 bank based on their rates first and then only send this 1 bank your financial documents to apply ?
 

walkofwinners

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Sorry but I don't quite understand. Possible to point me to some resources for reading?

I used hdb' loan estimation tool and was estimated to be eligible to up to 400k loan.

Why not just apply for hle to see the loan you are eligible for?

In the letter, it will have a rough estimate of monthly repayment too.
 

zensushi

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Hey guys, when applying for bank loan for resale hdb, do you guys choose a few banks and apply ?
Or just choose 1 bank based on their rates first and then only send this 1 bank your financial documents to apply ?


You can try a few banks.

Choose the one you like.

If the one you like != the best rates/schemes, ask if they can match the best offer.
 

zensushi

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Yes that wass the tool i used to estimate my maximum loan.

Therefore my next question is, based on this diagram,

why can't the monthly installment be paid off entirely with cpf?


Exactly what zencro said.

It means that based on their computation, the monthly CPF contribution is less that the housing loan servicing.


These tend to be quite conservative, though, as your salaries should increase with time.

Also, you may be eligible for grants that will bring down the anount of loan needed.
 

microtek

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Me and my wife are currently staying with the in-laws (no kids) and renting out our 5-room Queenstown HDB flat.

Would it be a good idea to sell our 5-room (~$750K) and upgrade to a 2 bedroom condo (~$800 - $900K) located in the OCR region (Punngol, Sengkang, East Coast etc...) near the MRT for better capital appreciation? Would it be a better investment 10 years down the road? Our jobs are stable and we don't intend on having kids.
 

henrylbh

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Me and my wife are currently staying with the in-laws (no kids) and renting out our 5-room Queenstown HDB flat.

Would it be a good idea to sell our 5-room (~$750K) and upgrade to a 2 bedroom condo (~$800 - $900K) located in the OCR region (Punngol, Sengkang, East Coast etc...) near the MRT for better capital appreciation? Would it be a better investment 10 years down the road? Our jobs are stable and we don't intend on having kids.

Do you really need to sell your 5rm since it is generating income? You can still buy a condo as the rental income can help defray the instalments of the condo.

There is nothing to gain from capital appreciation if you have only one residence.
 

zensushi

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Me and my wife are currently staying with the in-laws (no kids) and renting out our 5-room Queenstown HDB flat.

Would it be a good idea to sell our 5-room (~$750K) and upgrade to a 2 bedroom condo (~$800 - $900K) located in the OCR region (Punngol, Sengkang, East Coast etc...) near the MRT for better capital appreciation? Would it be a better investment 10 years down the road? Our jobs are stable and we don't intend on having kids.


That is what my wife & I are planning.

We will be selling off our 4-room Kim Tian flat after the tenancy is up in May next year.

Planning to get a 3-bedroom (at least) condo unit.
 

henrylbh

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Yes that wass the tool i used to estimate my maximum loan.

Therefore my next question is, based on this diagram,
financing_4rm.png


why can't the monthly installment be paid off entirely with cpf?

Whoever say that the monthly instalment cannot be paid off entirely with CPF?

As long as you have money in CPF, you can decide how much to be paid by CPF and you can vary the CPF amount to use as you wish.
 

henrylbh

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Hi guys. Just exercise my otp by submitting 4k to seller agent. Btw, otp contract is kept by seller agent?

What if the seller or his agent decides to throw away the otp that has been exercised by you, for whatever reasons they have.
 
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