HDB loan rejected

[glamorousdrama]

anyone's loans got rejected because they have a commissions based job?

i have one, but i have a stable and reasonable basic pay of 2750, while my bf earns about 3500 a month (non commission). Will our hdb loans be rejected?

I read the website and they said to submit my past 12 months bank statements too. Does it mean that they look at the amount of savings I have to determine if they want to approve of the loan? What if I take $$ out and pass them to my parents for saving purposes on a regular basis? My bank accounts dont have much $$ in them.... Do they want to look at my income per month, or they want to base it on savings? This is worrying..

Please advise!

 

[shootingstar88]

anyone's loans got rejected because they have a commissions based job?

i have one, but i have a stable and reasonable basic pay of 2750, while my bf earns about 3500 a month (non commission). Will our hdb loans be rejected?

I read the website and they said to submit my past 12 months bank statements too. Does it mean that they look at the amount of savings I have to determine if they want to approve of the loan? What if I take $$ out and pass them to my parents for saving purposes on a regular basis? My bank accounts dont have much $$ in them.... Do they want to look at my income per month, or they want to base it on savings? This is worrying..

Please advise!

They will base it on your income not savings.

Past income records are for verification of employment as well as income. If I recalled correctly, HLE requires 3 months of your past income history while AHG requires 12 months past record.
They would also require your CPF contribution history.

 

[bernardoh]

It does not matter whether you are commission based or not. They will request for your past 12 months CPF contributions and salary slips (can't recall the exact number of months) for evaluation. Do note that car allowances, hp allowances, etc may not be taken into consideration.

And no, they do not look at the savings you have in your bank account to determine your loan amount.

 

[Lafiel]

commison base
but never contribute to cpf how

 

[goenitz33]

based on your IRAS declaration.

unless you tell me you dont pay tax also.

which to the government you are NOT working

 

[tofushop193]

bank statment?

 

[glamorousdrama]

hmm not only pay slips and cpf eh.. they wanted my bank statements too. sighs have to request from bank to print. but its alright as long as the loan still gets approved. hopefully.

anyways FYI,

For applicants and occupiers:-
(a)(i) Latest 12 months’ payslips / commission statements or
(ii) Recent letter# from employer certifying job designation, commencement date and commissions / salaries for the last 12 months;

Applicants are also required to submit the following additional documents:-
(b)Past 15 months' CPF contribution history; and
(c) Past 12 months’ bank statements; and
(d) Credit Bureau Report@

this was taken from hdb website for Commission-Based Persons^ (e.g. Sales personnel, insurance agent) and Regular Part-time Workers^, according to them..

 

[Squaredot]

anyone's loans got rejected because they have a commissions based job?

i have one, but i have a stable and reasonable basic pay of 2750, while my bf earns about 3500 a month (non commission). Will our hdb loans be rejected?

I read the website and they said to submit my past 12 months bank statements too. Does it mean that they look at the amount of savings I have to determine if they want to approve of the loan? What if I take $$ out and pass them to my parents for saving purposes on a regular basis? My bank accounts dont have much $$ in them.... Do they want to look at my income per month, or they want to base it on savings? This is worrying..

Please advise!

Reject?
If you and your bf are proven gainfully employed with income > debt, unlikely your loan application will be rejected. However the amount HDB willing to loan you may be less than what you ask for.

 

[alpc]

Well, I had the same issue as my mum is considered under odd job person. So she had to give Credit Bureau report, IRAS and banks statements as well. Heck, she even got to take an oath at HDB hub because she is odd job person and got no "paper trail" on her earnings...

We still got our HLE approved.

 

[kazaf99]

my case is the same as yours
approved for >550k

clean credit record

so i think no need to worry

but pls do ur hle first b4 paying the option fee
a lot of ppl are doing the wrong way by paying option fee then start to apply for hle

 

[glamorousdrama]

oh, alright, thanks all for the advice!

hmm so you do mean say if im looking into a june bto i should be doing up my hle loan application in end may or something ya?

thanks!

 

[CFC]

oh, alright, thanks all for the advice!

hmm so you do mean say if im looking into a june bto i should be doing up my hle loan application in end may or something ya?

thanks!

If you're free to do so, you should get it done then. Anyway, HLE validity can be extended, of course at HDB's discretion.

One thing to note is that you could apply for HLE on your selection date as well. Don't have to waste time and effort to submit prior to selection (with the competition now, don't even know can get Q number or not )

The guide I used for myself (which proves to be accurate) and suggestion to my friends is that the max loan amount will be 100 times of your combined gross income, capped at 90% of your purchase price. Of course, this is on the assumption that you guys are young couple applying, with no outstanding debts etc etc. So, take the 100X thing as a guide only please.

Having said all these, it's free to apply HLE anyway. If you've got the time and effort, why not, for the peace of mind.

 

[1stlove]

The guide I used for myself (which proves to be accurate) and suggestion to my friends is that the max loan amount will be 10 times of your combined gross income, capped at 90% of your purchase price. Of course, this is on the assumption that you guys are young couple applying, with no outstanding debts etc etc. So, take the 10X thing as a guide only please.

10 times the combined income? So if combined income is $8000, then the loan amount is $80000

 

[CFC]

Oops... I meant to say 100. Paiseh. Edited my original post.

 

[oscar]

Do yr HLE first, see what’s the result. Dont go pay yr selection fees than find unable to loan the amount u need.

As u never mention u 1st timer or 2nd timer applying for BTO, cos there’s a difference in the loan structure (if u still have outstanding loan).

My advise is to strictly show yr CPF contribution only, when ask for any other supporting doc say no. If probe further just say parents have some saving u can relied upon.

DO NOT show yr bank statement. Cos this will prove that you’re “Rich”, don’t require HDB loan, they will reject u n push u to take private bank loan.

Friend who work in HDB told me HDB now very stingy to loan money to people (unwritten rule), only exception is people who really need Gov help. All other they will push to take private loan as the bank rate is low now and the pool of money allocated to HDB is not large.


U can also approach bank n ask them for a loan quotation, base on an estimated BTO flat price. To access what is the loan amount u could loan.

 

[skyman1]

why not take bank loan, interest is cheaper than hdb.

 

[glamorousdrama]

@oscar I'm a first timer applying, both of us have no outstanding loans/debts to the banks.

Hmm I wish I can dont show actually, but its stated on the website that I have to present my bank statements because my income is commission based, even when I have a stable and decent basic salary.

@CFC thanks for the friendly advice! haha im not worried about max loan that much, cos I guess the estates we're looking at arent too expensive. we're more concerned if our savings reflected in the banks determines the approval of our hdb loan or not. we dont want to NOT be able to borrow anything from hdb at all.

@skyman bank loans really cheaper? which banks do you guys suggest me to look into to ask for quotations?

thanks again all!

 

[CFC]

@oscar I'm a first timer applying, both of us have no outstanding loans/debts to the banks.

Hmm I wish I can dont show actually, but its stated on the website that I have to present my bank statements because my income is commission based, even when I have a stable and decent basic salary.

@CFC thanks for the friendly advice! haha im not worried about max loan that much, cos I guess the estates we're looking at arent too expensive. we're more concerned if our savings reflected in the banks determines the approval of our hdb loan or not. we dont want to be able to borrow anything from hdb at all.

@skyman bank loans really cheaper? which banks do you guys suggest me to look into to ask for quotations?

thanks again all!

Wait, you guys DO NOT want to be able to borrow anything from HDB? Then why are you concern about HLE at all? I'm confused.

 

[glamorousdrama]

Wait, you guys DO NOT want to be able to borrow anything from HDB? Then why are you concern about HLE at all? I'm confused.

oops sorry. i edited my previous post.

 

[CFC]

My advise is to strictly show yr CPF contribution only, when ask for any other supporting doc say no. If probe further just say parents have some saving u can relied upon.

DO NOT show yr bank statement. Cos this will prove that you’re “Rich”, don’t require HDB loan, they will reject u n push u to take private bank loan.

Friend who work in HDB told me HDB now very stingy to loan money to people (unwritten rule), only exception is people who really need Gov help. All other they will push to take private loan as the bank rate is low now and the pool of money allocated to HDB is not large.


U can also approach bank n ask them for a loan quotation, base on an estimated BTO flat price. To access what is the loan amount u could loan.

Speaking from personal experience, I applied for a Nov 2012 BTO. Applied for HLE as usual and because I am self-employed, I need to submit my past 12 months bank statements. I, like more Singaporeans, do not keep any paper statement of my bank accounts. Everymonth the statements come, read, check correct, off it goes to the recycle bin.

Banks are charging $20 per statement and I have 2 accounts. 2 X $20 X 12 months is $480!!! I asked what are my options and the officer said that since this is my first HLE application (which is used on the signing of Agreement of Lease day for the assessment whether my fiance and I are eligible for HDB loan), I can write in to them officially to say that I do not wish to pay the $480 and will not be providing my bank statement.

Now, here's the catch. Because I chose not to submit the bank statements, my income was NOT considered in the granting of the max. loan amount, only my fiance's.

Not sure where oscar got the info from as to because you're cash rich in the bank, HDB will not grant you the loan. I personally doubt it's true la. Doesn't adds up to me.

Anyway, to TS, based on my experience, you have a choice to not submit the bank statements, HDB will simply not include your income in the assessment of your max loan, to be stated in the HLE.