HLE enquiry

gold_eagle36

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Scenario
Couple applying bto under fiance fiancee scheme.
1 worked for >1 year. Gross 3.3k
1 schooling. Working in 6 months time.

flat applying for 520k. New working adult so loan need around 450k still due to no cpf savings

So HLE possible to go through with income. Like is there the taking account of possible dual income.
If not. Let say ballot number favourable. HLE will not go through? So have to bank loan?
 
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Fifa2006

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Hi Gold Eagle,

I am not too sure on HLE loan maybe you can get someone else to advice you on that. but if you are obtaining a bank loan, the maximum loan will be only 80% of your purchase price (pp)

PP: $480k
Bank Loan (80%) : $384k
CPF & cash needed (20%): $96k
Stamping: $9k
Legal Fee: $2k - $3k (depending on which lawfirm you use)

Hope this helps :)
 

logicet

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First HLE during appt is just to check if you are eligible for HDB loan. There will be a review of HLE amount when you are collecting the keys.
 

gold_eagle36

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First HLE during appt is just to check if you are eligible for HDB loan. There will be a review of HLE amount when you are collecting the keys.

Thanks. But the price is quite far away. So first HLE appt don't really have to meet the loan amount. Cause let say during payment of deposit, will they take into account the first HLE didnt even qualify for the loan amount 90%:s11:
Hi Gold Eagle,

I am not too sure on HLE loan maybe you can get someone else to advice you on that. but if you are obtaining a bank loan, the maximum loan will be only 80% of your purchase price (pp)

PP: $480k
Bank Loan (80%) : $384k
CPF & cash needed (20%): $96k
Stamping: $9k
Legal Fee: $2k - $3k (depending on which lawfirm you use)

Hope this helps :)

Thanks. looks like bank loan is out of the question since lack of liquid cash :o
 

logicet

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The 90% is not a criteria. Usually HDB will not loan you up to 90% of the price. The first HLE is just to check your eligibility but the actual loan disbursed will be during your keys collection where a new assessment will be done to determine the new amount.
 

anddrool

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The purpose of HLE is to determine whether buyer is able afford the flat.
If you are not able to secure a loan to cover your purchase and does not have finance power to show HDB you are capable of financing the flat, they will not sell it to you.

Secondly, you maybe over stretching too much to finance your mortgage. Given your current gross is 3.3k and assume your wife secures her job for 3.3k. Total of 6.6k therefore monthly cpf contribution to ordinary account is able 1.5k

HDB loan of 450K for 30 years is about 1.8k per month.
You need to fork out 300 cash per month and both your ordinary account will be 0 every month until combine income is more than 9k. If anyone is unemployed then mortgage becomes a huge problem.

Of course you may have already consider all possibilties. But does not harm to think it though again.
 

gold_eagle36

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The purpose of HLE is to determine whether buyer is able afford the flat.
If you are not able to secure a loan to cover your purchase and does not have finance power to show HDB you are capable of financing the flat, they will not sell it to you.

Secondly, you maybe over stretching too much to finance your mortgage. Given your current gross is 3.3k and assume your wife secures her job for 3.3k. Total of 6.6k therefore monthly cpf contribution to ordinary account is able 1.5k

HDB loan of 450K for 30 years is about 1.8k per month.
You need to fork out 300 cash per month and both your ordinary account will be 0 every month until combine income is more than 9k. If anyone is unemployed then mortgage becomes a huge problem.

Of course you may have already consider all possibilties. But does not harm to think it though again.

Thank you for your kind advice. :) Actually, now looking at alternatives.
350k flat. So should be much better.
 

catwhisperer

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The purpose of HLE is to determine whether buyer is able afford the flat.
If you are not able to secure a loan to cover your purchase and does not have finance power to show HDB you are capable of financing the flat, they will not sell it to you.

Hi,

I was under the impression that as long as you can get HLE approval for the first appointment, no matter how little, HDB will allow you to select the flat, and when you collect the keys the HLE will be re-evaluated. So let's say 90% is 500k, but my current HLE is only 300k but I'm confident that 5 years later when I collect my keys I can definitely meet 500k loan ceiling, can I be allowed to select my flat?

Asking cos my fiance and I are earning a pittance as we are undergoing training but once we complete training our income will be quite a bit higher.

thanks!
 

Hyruga

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I havent apply for HLE. Is it still possible to ballot for flat at this Nov BTO?
 

anddrool

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Hi,

I was under the impression that as long as you can get HLE approval for the first appointment, no matter how little, HDB will allow you to select the flat, and when you collect the keys the HLE will be re-evaluated. So let's say 90% is 500k, but my current HLE is only 300k but I'm confident that 5 years later when I collect my keys I can definitely meet 500k loan ceiling, can I be allowed to select my flat?

Asking cos my fiance and I are earning a pittance as we are undergoing training but once we complete training our income will be quite a bit higher.

thanks!

Based on your example:
Required HLE is 500K
Granted HLE is 300K
Shortfall of 200K

It is very unlikely HDB will approve the sale. Too much of a difference.
Future potential earning cannot secure a loan. If you use that as a reason, the bank/financial can also argue that the application income may decrease due the worsen economic or unemployed.

The purpose of HLE is to safe guard buyer's interest by letting them know how much they can loan and finance the purchase. Imagine if HDB approve applicants who are not able to secure enough loan to fund the purchase, and when the flat is ready for collection buyers are unable to pay for the flat. The buyers down payment will be forfeited. If there are thousands of such cases, then people will complain again(judging by Singaporean style) why HDB approve such buyers in the first place. Why did HDB approve the sale despite buyers are not able to secure sufficent HLE.
 

keithster

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i think it is possible.

some flat buyers for may 2012 bto kallang whampoa managed to get a unit with only a person working.

i dunno how they do it, but i pretty sure that they did obtain the grant and negotiate with HDB.

dun give up hope :)
 

anddrool

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It depends very much on how much is the shortfall. If the shortfall is not too much, then there maybe room for negotiation.

But in terms of black and white stated by HDB, applications have to secure enough HLE before sale is approved.
Anything else is act of goodwill. :)
 
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misspotato

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I think if you are not very sure, please do not spread false info else it is very misleading. Can someone with experience please help to clarify? I am very sure I read before after months of bto-ing, that low HLE still can select flat as many others who had done before. The reason is HDB will never know whether you have cash for shortfall. Who knows our parents are rich and can easily top up 200k for us? Sale cannot continue only upon collection of keys if no cash/cpf and HLE not enough
 

logicet

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If you are not sure, try calling HDB to ask. I asked before and what they told me is the first HLE is just a formality, to prove you can take a loan from HDB. The second HLE during the collection of keys will be the final amount you will be able to loan. However, if during the second HLE your combined income exceeded the income ceiling, they will honor the first HLE and disbursed that amount to you so you will have to make up for whatever shortfall in cash/CPF.
 

acetylcholine

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If you are not sure, try calling HDB to ask. I asked before and what they told me is the first HLE is just a formality, to prove you can take a loan from HDB. The second HLE during the collection of keys will be the final amount you will be able to loan. However, if during the second HLE your combined income exceeded the income ceiling, they will honor the first HLE and disbursed that amount to you so you will have to make up for whatever shortfall in cash/CPF.

Most will just go for a bank loan instead if they don't qualify for HLE then.
 

noel13

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HLE at first appointment won't really affect much.

Upon getting your Q no.

1) first appointment select your unit. Pay $2000 for booking fee.

2) 2nd appointment usually 4-5 months. This time you sign the lease. At this point you need to have at least 10% of the flat value if you are taking hdb loan. And the HLE at this point doesn't play a big part. This point of time. That 10% down payment is the key.

3) than when upon taking key for your BTO flat. HDB will do a final access on your HLE.

Hope this help.
 

cokiee

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I have no idea where the discussion is going, but thought i'd just share my experience. I made a booking at clementi gateway a couple of months ago.

Some pertinent points:

At the point in time of the application, i.e., online, both my gf and i were working. Combined income on average was about 7k. However when it came to the time to select the flat, I was in between jobs that particular month, and had no income. I did highlight this to the HDB officer, but also provided the documents from the previous months. The HDB officer allowed us to select the flat, and filled out the HLE application form for us.

We had our HLE approved at about 66.6% of the PP.

I also inquired about the possibility of the HLE amount changing after I settle into my new job, and the officer informed me that the 1st HLE doesn't matter that much as HDB will re-assess our incomes when the time comes to collect the keys to our flat.

Thus I think TS should be fine, since their incomes is expected to rise when they finish training.

One pertinent issue I had (and am having since i never called the officer to inquire) was whether the current amount was based on single or joint incomes; if single, then fine and dandy, if joint then it does seem rather a low QOF.

A possible reason if this was based on joint is that they expect our CPF contributions to accumulate and make the shortfall between 90%QOF and current HLE amount, and will clear out our CPF accounts before granting the loan.

hope this helps!
 

the.airpork

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Gosh now I am worried. Just went for my selection few days ago. HLE that I applied before selection was only 319k (because I was studying and only BF was working) but my flat is 461k.

BF just got a promotion and I think his income is actually going to double in the next few years if he continues working. I just started work 3 months ago and it's partly commission based job so I am already seeing a steady increment every month.

If by the time we collect our flat and our combined income is higher than the income ceiling, will that mean that they will only give us a 319k loan based on the first HLE? Will we be able to get a reassessment and get a 2nd HLE higher amount even if we hit income ceiling?

Does that mean we have to top up the rest in CPF + cash? Our CPF will definitely increase but I don't think it can make up the shortfall of 140k?!

Gosh.. in this case are we allowed to take a bank loan for the remaining amount? :s11:
 
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Gosh now I am worried. Just went for my selection few days ago. HLE that I applied before selection was only 319k (because I was studying and only BF was working) but my flat is 461k.

BF just got a promotion and I think his income is actually going to double in the next few years if he continues working. I just started work 3 months ago and it's partly commission based job so I am already seeing a steady increment every month.

If by the time we collect our flat and our combined income is higher than the income ceiling, will that mean that they will only give us a 319k loan based on the first HLE? Will we be able to get a reassessment and get a 2nd HLE higher amount even if we hit income ceiling?

Does that mean we have to top up the rest in CPF + cash? Our CPF will definitely increase but I don't think it can make up the shortfall of 140k?!

Gosh.. in this case are we allowed to take a bank loan for the remaining amount? :s11:

There will be a 2nd re-assessment before you collect the keys regardless of any change in situation (income increase/unemployed), so they will peg against your future joint income. Income increase, cpf OA will increase too. Just ensure you have sufficient to pay off the monthly installments form your combined CPF savings from OA acct, which also depends on how long your drag the loan for (Term), most ppl loan for the max - 30yrs.

If ur HLE still falls short of ur purchase price, u will have to borrow from bank or pay using cash.

Hope I answered ur queries.
 
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andrewsoh

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There will be a 2nd re-assessment before you collect the keys regardless of any change in situation (income increase/unemployed), so they will peg against your future joint income. Income increase, cpf OA will increase too. Just ensure you have sufficient to pay off the monthly installments form your combined CPF savings from OA acct, which also depends on how long your drag the loan for (Term), most ppl loan for the max - 30yrs.

If ur HLE still falls short of ur purchase price, u will have to borrow from bank or pay using cash.

Hope I answered ur queries.

2nd assessment if exceed the capping will they withdraw the flat? :s11: thx
 
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