HLE enquiry

[the.airpork]

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.

Yes, somewhat.. thank you

As for the income ceiling.... it's because I read somewhere that once your income exceed $10k, they won't give you a reassessment or new HLE, just straightaway use your first HLE that was given when applying flat. And the loan amount is quite pathetic. I think I'll have to call them up and ask (but nobody pick up).

Oh well, I guess all we need to do is ensure we have enough CPF and cash for the next few years! Thanks!

 

[shootingstar88]

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

logically, i dont think they will do that. i think it's determined at the point of application. shouldnt be the case, but in any case, hdb would be ur best bet to clarify.

 

[shootingstar88]

Yes, somewhat.. thank you

As for the income ceiling.... it's because I read somewhere that once your income exceed $10k, they won't give you a reassessment or new HLE, just straightaway use your first HLE that was given when applying flat. And the loan amount is quite pathetic. I think I'll have to call them up and ask (but nobody pick up).

Oh well, I guess all we need to do is ensure we have enough CPF and cash for the next few years! Thanks!

really? if exceed 10k, cash n cpf savings would most prolly suffice then...

 

[hwaa]

why dont u just call hdb and ask for a cfm answer?

 

[glamorousdrama]

hey all, what if at selection, our hle loan allows us to loan up to for eg. 400k, and base on that we prob select a flat thats 440k (90% loan of 400k) too. but 3-4years down the road say one of us loses the ability to work (choy!) or our total income decreases. So then, our income decreases, I am sure that the HLE review will reflect that we will then only be eligible for a lower loan amount right? then what if the loan granted now is only like 300k? then how sia?? cannot cover the house price.

will hdb take back the house? or we just have to cough cash out to top up?

 

[bearine]

Yes, somewhat.. thank you

As for the income ceiling.... it's because I read somewhere that once your income exceed $10k, they won't give you a reassessment or new HLE, just straightaway use your first HLE that was given when applying flat. And the loan amount is quite pathetic. I think I'll have to call them up and ask (but nobody pick up).

Oh well, I guess all we need to do is ensure we have enough CPF and cash for the next few years! Thanks!

Hmmm.. I was thinking if let's say ur income exceed 10k, they will honor the first HLE.. Then shldnt the couple go reapply HLE before their income hits 10k to get the max amt of loan?

 

[Gixxerfied]

Hmmm.. I was thinking if let's say ur income exceed 10k, they will honor the first HLE.. Then shldnt the couple go reapply HLE before their income hits 10k to get the max amt of loan?

Something like that but HLE only valid for 3 months..Unless u have join in the ballot for a BTO/SOBF, doesnt make sense to go apply for HLE first..


Anyway, hw long is the HLE processing time nowadays after sending in all the supporting documents, anyone?

 

[logicet]

Something like that but HLE only valid for 3 months..Unless u have join in the ballot for a BTO/SOBF, doesnt make sense to go apply for HLE first..


Anyway, hw long is the HLE processing time nowadays after sending in all the supporting documents, anyone?

6 weeks for me

 

[henrylbh]

hey all, what if at selection, our hle loan allows us to loan up to for eg. 400k, and base on that we prob select a flat thats 440k (90% loan of 400k) too. but 3-4years down the road say one of us loses the ability to work (choy!) or our total income decreases. So then, our income decreases, I am sure that the HLE review will reflect that we will then only be eligible for a lower loan amount right? then what if the loan granted now is only like 300k? then how sia?? cannot cover the house price.

will hdb take back the house? or we just have to cough cash out to top up?

If the max loan allowed finally is 300k only, surely you need to pay the difference in cash or forgo your selection.

 

[henrylbh]

Yes, somewhat.. thank you

As for the income ceiling.... it's because I read somewhere that once your income exceed $10k, they won't give you a reassessment or new HLE, just straightaway use your first HLE that was given when applying flat. And the loan amount is quite pathetic. I think I'll have to call them up and ask (but nobody pick up).

Oh well, I guess all we need to do is ensure we have enough CPF and cash for the next few years! Thanks!

There could be a misunderstanding. When you first apply, you need to have HLE to support that you are able to afford the flat and that your income is below the ceiling.

Subsequently, when your income exceed the ceiling upon selection, I think you are still eligible to proceed with the selection. As for HLE, it is still required to show that you are still able to to afford the flat on selection date. It's got nothing to do with the income ceiling. Of course, with a higher income, the loan quantum is not a problem as the lender will grant you no less than what was granted initially.

 

[ACbukitbatok]

There could be a misunderstanding. When you first apply, you need to have HLE to support that you are able to afford the flat and that your income is below the ceiling.

Subsequently, when your income exceed the ceiling upon selection, I think you are still eligible to proceed with the selection. As for HLE, it is still required to show that you are still able to to afford the flat on selection date. It's got nothing to do with the income ceiling. Of course, with a higher income, the loan quantum is not a problem as the lender will grant you no less than what was granted initially.

Yes, exactly. I did ask the HDB officer about this issue during my flat selection last month. What they told me is that they will only look into your income ceiling during the application and flat selection. Subsequently, they won't be looking into that anymore. During your key collection, all they will assess is how much you can and need to loan and whether the loan is from HDB or private bank. That's the reason y they will need a reassessment of your joint income and HLE to determine how much you can and need to loan, not for the purpose of double checking whether your income has exceeded the income ceiling.

 

[alpc]

Well, from the explanation given yesterday -
-6 mths before you get your key, they will ask you to reapply for HLE. (I don't know anything about above 10K - don't think I would hit that amt by then).
-When you go get key, if your HLE loan amt is not 90% of the price of flat; you will have to pay cash to top up the difference. So if your Price is 500K, you are given HLE loan of 400K, then you need to pay cash 100K.
-If you don't have the cash... you can delay getting the key and find ways to come up with the cash. I think you can delay getting key for a few months (that what I was told).
- If at the end you don't have the ability to close the gap (as in paying the cash), you will lose 5% deposit, and your flat is gone.

I know this because the officer told me I have a gap of 51K between the 90% and the loan given by HLE. So it means the 2nd HLE loan amount, must make sure it hits 90%, even if we won't be loaning that much!

 

[ki113r]

How does HDB calculate the max loan eligibility huh?

 

[ACbukitbatok]

Well, from the explanation given yesterday -
-6 mths before you get your key, they will ask you to reapply for HLE. (I don't know anything about above 10K - don't think I would hit that amt by then).
-When you go get key, if your HLE loan amt is not 90% of the price of flat; you will have to pay cash to top up the difference. So if your Price is 500K, you are given HLE loan of 400K, then you need to pay cash 100K.
-If you don't have the cash... you can delay getting the key and find ways to come up with the cash. I think you can delay getting key for a few months (that what I was told).
- If at the end you don't have the ability to close the gap (as in paying the cash), you will lose 5% deposit, and your flat is gone.

I know this because the officer told me I have a gap of 51K between the 90% and the loan given by HLE. So it means the 2nd HLE loan amount, must make sure it hits 90%, even if we won't be loaning that much!

What about the CPF wipe out during the key collection? I mean, they will wipe out all the remaining OA $$ in the CPF right? Doesn't that comes into play by then? Meaning to say if you have a shortfall between the approved HLE loan amount and 90% of the flat price, can't we used the OA $$ to deduct from?

 

[alpc]

What about the CPF wipe out during the key collection? I mean, they will wipe out all the remaining OA $$ in the CPF right? Doesn't that comes into play by then? Meaning to say if you have a shortfall between the approved HLE loan amount and 90% of the flat price, can't we used the OA $$ to deduct from?

Can't remember... As far as I remember they say cpf not enough to cover the gap, so have to pay the gap amt as cash even before they wipe out cpf...

 

[bearine]

Something like that but HLE only valid for 3 months..Unless u have join in the ballot for a BTO/SOBF, doesnt make sense to go apply for HLE first..


Anyway, hw long is the HLE processing time nowadays after sending in all the supporting documents, anyone?

Applied on the 18th, received on the 4th of the following month..

 

[ACbukitbatok]

Can't remember... As far as I remember they say cpf not enough to cover the gap, so have to pay the gap amt as cash even before they wipe out cpf...

In that case, I suppose even after including the CPF OA $$, there is still a shortage, that explains why cash is involved...

 

[alpc]

Anyway, the officer say it is best to have the HLE showing that the loan amount covers 90% of the loan when you collect the keys. If you want to risk it and leave a gap, and you don't have cash to pay for the gap on the day of key collection, you could just don't take the keys till you figure out what to do then. They will give some time delay to collect the keys that's what they told me.

Weird rulings they have and followed to the T, and the rational is that they are trying to make sure you are able to pay for the flat. Best part, they know you got the current flat and 50% of the cash proceed will have to go into payment for the flat, and yet that will not be taken into consideration to fill the gap when you collect the keys... Haiz.

 

[ninabey]

lets say if i apply HLE with my mum.. and the officer say the approve amount max is only 80k based on my salary.. my mum's salary can't count in because she only work for 1 month plus. is there any way i can ask for higher amount???

 

[itedino]

Try bank loan la