March BTO 2012

[LiangZzZ]

Hi first timer here seeking some advise in applying flat with my fiancé.

We are applying for a 5room flat in Bt Batok which cost about $500,000.
Our combined CPF OA in 3yrs time will be around $250,000
1) Is HDB going to wipe out everything?

2) If we were to loan the rest from HDB at 2.6% interest rate, should we try to clear in 15years or should we drag to 30years considering the fact that CPF OA interest rate is still at 2.5% ?

Don't forget also the 10% downpayment which you paid. Yes, they will wipe out your CPF at the commencement of your lease, i.e. when you collect your keys.

The remaining sum after wipeout will be about $300k, so that will be the loan you will have to service. There is no right or wrong on whether you should clear your loan asap, if you are comfortable with shelling out with more cash to reduce the interest accumulation, I would say go for it. Otherwise, use CPF slowly pay off lor. It's all about opportunity cost.

 

[Xenith]

HDB InfoWEB e-Service : Flat Supply & Applications Received

HDB InfoWEB e-Service : Flat Supply & Applications Received

If u just look at the ratio of second timers, u will see that an overwhelming majority are second timers who had enjoyed the housing grant prev, now currently having a hdb flat that can be sold on the resale market for quick cash (COV) and trying their luck for a relatively cheaper flat from the govt.

the younger generations are being screwed by the older ones that have benefitted from the boom.. albeit there are alot of converted "singaporean citizens"

the numbers speak for themselves

 

[LiangZzZ]

If I manage to go for option, they will see my income in mid-april?
becoz now I am not working, so how?

My gf income not enough. Only can loan maybe 200k.
So We will need another 80k.

My qns is: CPF money also put into investment, is it counted? I will only take out when the investment mature in 2015.


Me is first timer. So very blur.

HDB will consider your past 3 months salary for full-time employment. How much is your gf earning per month? It will help if you can do the HDB Loan Eligibility application to find out the actual loan amount you can get, cos I don't know how do you derive 200k. It's free so don't worry.

https://services2.hdb.gov.sg/webapp/BP27LEASHLE/BP27Main/BP27PApp.jsp

If you CPF money is locked in and your combined CPF-OA is insufficient to pay the initial downpayment, you will have to use cash to top-up the shortfall lor...

 

[jadebunnyx]

Buying overpriced flat like a four room for 500k don't mean you are rich. You are simply owing the loan more than anyone else....

 

[chinweekoh]

Downpayment for new flat!

When exactly do we need to pay the down payment?
And exactly how much?

The HDB stated 10%, however all of my frens mentioned it's 5%+5%
I am so worry I don not have the 10% for downpayment.

 

[Milo-Dino]

Downpayment for new flat!

When exactly do we need to pay the down payment?
And exactly how much?

The HDB stated 10%, however all of my frens mentioned it's 5%+5%
I am so worry I don not have the 10% for downpayment.

as long as one of you or your fiancee are below 30, you get the staggered downpayment scheme (5+5)

first 5% is paid when you sign your lease.
next 5% is paid when you collect the keys

 

[jadebunnyx]

Those who can't afford encouraged to stay far-away places - preferably JB.

So BTO is tagged to Resale price, which is in turn tagged to high valuation by HDB valuers.

Roughly,
Year 2000 HDB 5-room point block costs $250,000.
Year 2005 HDB 5-room point block costs $400,000.
Year 2012 HDB 5-room point block costs $645,000!

Either the S$ has devalued, or HDB flat suffers major inflation %.

HDB can give reasons why they cannot control market pricing.
However, one thing is within their control - they can likewise "inflate" the grants to help offset the bloating of HDB prices.

2015 @ $750k? (after it's built)

then MOP another 5 years (ready to sell) $900k? LOL!

Why not use the money now to get an EA? 145sqm uber big and same price (cheaper maybe).

 

[jadebunnyx]

as long as one of you or your fiancee are below 30, you get the staggered downpayment scheme (5+5)

first 5% is paid when you sign your lease.
next 5% is paid when you collect the keys

First 5% which is 4 months later you select a flat, deduct via CPF.

Then another 5% is as said, when take keys. Don't forgot still got those stamp fee and dunno what.. misc thing abt 8-10k liao..

 

[Milo-Dino]

First 5% which is 4 months later you select a flat, deduct via CPF.

Then another 5% is as said, when take keys. Don't forgot still got those stamp fee and dunno what.. misc thing abt 8-10k liao..

yup.. 4 months sounds about right.

In between it all, got option fee to pay which will be returned after flat lease is signed

 

[jadebunnyx]

Picked up from the HDB on financial issue.

To take a housing loan, you must have:

Sufficient income to qualify for a loan.
Steady income to pay back the housing loan with interest over 20 to 30 years.

Step 1 : Affordability
HDB InfoWEB: Step 1 : Affordability : Financing your flat


And dont forget the wives might argue to stay home to look after baby after giving birth this and that. = 1 lesser income.

And parents (yours and your partner's) getting old, medicial and such getting so expensive.

And kids' education, one newborn need like 500$ a mth? A tin of milk powder is 70$ and can last like 2 weeks?

It's not pouring cold water or meant to offense anyone. I am sorry if I did. I am just stating a fact that all of us are facing soon or later.

Sales Financial Plan: HDB InfoWEB: Sales Financial Plan : Buying A New Flat

Anyway, 4 months after getting a unit will be signing of lease and need to pay 5% of the downpayment from CPF. HDB InfoWEB: Planning Your Finances : Buying A New Flat

R e p o s t.

 

[jadebunnyx]

Here is the calculator, pick 2.6% interest rate and see what are you paying for.

Can your monthly combined CPF sustain such amount to repay? If cannot then gonna pay cash liao..

http://services2.hdb.gov.sg/webapp/BB29MTHLY/BB29SMTHLY

R e p o s t ..

 

[Elnin0]

HDB will consider your past 3 months salary for full-time employment. How much is your gf earning per month? It will help if you can do the HDB Loan Eligibility application to find out the actual loan amount you can get, cos I don't know how do you derive 200k. It's free so don't worry.

https://services2.hdb.gov.sg/webapp/BP27LEASHLE/BP27Main/BP27PApp.jsp

If you CPF money is locked in and your combined CPF-OA is insufficient to pay the initial downpayment, you will have to use cash to top-up the shortfall lor...

I bid for March 2012 flat, I'm more worry if HDB reject my application or reject my loan.

If not wrong, when the result out in mid April, I will need to go down to pay the option fees & 5% in 4 mths' time..... that is not an issue for me.

QNS: As for loan eligibility, if I short of 10k, I can show them my bank account got $10k cash? BUT however, when I collect key in 2015, obviously I will not use the cash..... 100% by CPF if possible.

 

[jadebunnyx]

I bid for March 2012 flat, I'm more worry if HDB reject my application or reject my loan.

If not wrong, when the result out in mid April, I will need to go down to pay the option fees & 5% in 4 mths' time..... that is not an issue for me.

QNS: As for loan eligibility, if I short of 10k, I can show them my bank account got $10k cash? BUT however, when I collect key in 2015, obviously I will not use the cash..... 100% by CPF if possible.

U mean you are short of 10k for which loan? HLE? AHG? Still, the loan approves depending on your incoming and that's why HDB also requires us to submit payslip instead of showing bank account.

 

[sunnyhor]

last time my father buy a 4 room hdb 104sqm, built by singaporean construction worker, same type of construction materials, price is at 60K

now you wan to buy a 4 room hdb 93sqm, built by bangala construction worker, same type of construction materials, price is at 400+K , add on interest u pay 500+ to 600K...

singaporeans know how to calculate bor? after all the years of education still don know how to calculate? hhmm... think singapore education system really failed...

But don't forget, last time police wear shorts huh

 

[Milo-Dino]

I bid for March 2012 flat, I'm more worry if HDB reject my application or reject my loan.

If not wrong, when the result out in mid April, I will need to go down to pay the option fees & 5% in 4 mths' time..... that is not an issue for me.

QNS: As for loan eligibility, if I short of 10k, I can show them my bank account got $10k cash? BUT however, when I collect key in 2015, obviously I will not use the cash..... 100% by CPF if possible.

They only determine the max amount of loan u can get.

Say the flat is 400k. After 10% downpayment, the reminder is 360k. If HDB determines that max loan they can give you (based on your monthly/annual salary) is 300k, you probably need to pay up the difference of 60k in cash when collecting keys (correct me if i'm wrong)

 

[Laneige]

Hi first timer here seeking some advise in applying flat with my fiancé.

We are applying for a 5room flat in Bt Batok which cost about $500,000.
Our combined CPF OA in 3yrs time will be around $250,000
1) Is HDB going to wipe out everything?

2) If we were to loan the rest from HDB at 2.6% interest rate, should we try to clear in 15years or should we drag to 30years considering the fact that CPF OA interest rate is still at 2.5% ?

dont drag lah
drag so long u pay more interest, somemore the first few yrs a lot goes into interest payment not actual unit payment

 

[chubby06]

I wouldn't drag if I'm paying by cash.
But since CPF interest rate is 2.5% and HDB interest rate is 2.6%, wouldnt it be wiser to keep the money in CPF?
Can some econs expert do some calculation here take for example a 250k loan?

 

[dreamer75]

They only determine the max amount of loan u can get.

Say the flat is 400k. After 10% downpayment, the reminder is 360k. If HDB determines that max loan they can give you (based on your monthly/annual salary) is 300k, you probably need to pay up the difference of 60k in cash when collecting keys (correct me if i'm wrong)

no income ceiling for HDB loan eligibility right?

 

[Jarlaxle]

QNS: As for loan eligibility, if I short of 10k, I can show them my bank account got $10k cash? BUT however, when I collect key in 2015, obviously I will not use the cash..... 100% by CPF if possible.

they dun care.
u dun even hv to show that u got the money.

that time, one guy applied for a 500+k sobf for tiong bahru.
household income only 2k+ also can get a unit.

i was wondering how/why did hdb allows him to get it.
but i suppose he may strike toto in future or parents helping out ,etc

so u can absolutely be sure that u wont get rejected

 

[idolcritic]

no income ceiling for HDB loan eligibility right?

$10,000 ceiling for couple right? $5,000 for singles? If above, cannot apply HDB loan, must take bank loan?