May BTO 2012

[cuppers]

How does hdb approve the loan? Based on monthly salary and age? eg if one is buying a $500k hdb, will hdb loan the full amount or only portion of it? Sorry for the noob qns.

Also I suppose for a $550k hdb, website has calculated monthly payment as abt 1.9k to 2k. Meaning these amount can be fully deducted from cpf ordinary account right? If monthly contribution is enough then we don't have to fork out cash? I mean is there a cap as to the amount u can use from your CPF ORD acct?

May I also ask when we will have to get the loan approved? Before selection of unit or before getting the keys? Taking into consideration it takes a few years to build, by then income may have increased as compared to during flat selection

 

[Larfing]

Huh? You buying location or home? 3rm and 4rm living is different... Short of one room make huge difference....

Of course home. There is only two of us so it is ok with a 3rm flat ATM. Even I we are going to hv a kid, two bedroom should still be ok within a few yrs. we just want a home so that we can plan our next step. Really hv no patience to wait anymore.. Plus, it will be so much nearer to our work place from KW.. I can't imagine if we go to pungol or cck then how early we need to get up from bed to go work... Guess I'm just too lazy and alway hv prob waking up in the morning... So, hmmm... Ya, location is somehow v important to me too.... So, we chose KW even though we need to give up on the room size...

 

[lockks]

If property market plunge and you take bank loan... Esp young couples... Die already... Hdb loan is there for a reason... My advice to young couples... If need to fork out cash on monthly...then think twice! 30years is not funny.

Nowadays people still think HDB loan is a safe haven.
If 30 years down the road, interest rates keep staying low,
you will pay double.
It will be very funny

 

[nrsa.2010]

hi, i noticed some bto projects have plaza inside. what is this plaza?? is this row of shophouse or..??

 

[acetylcholine]

Nowadays people still think HDB loan is a safe haven.
If 30 years down the road, interest rates keep staying low,
you will pay double.
It will be very funny

Many perceive HDB loan to be a safe haven because the rate is predictable, which means you can plan ahead and see whether you can afford to pay the mortgage every month. This can be contrasted with bank loans which are subject to fluctuations. Interest rates are kept low as of now but if liquidity really dries up, who knows if rates will increase above the HDB interest rate? It's simply a choice between a better rate (for now) or a greater amount of certainty and predictability.

 

[wwtan83]

Of course home. There is only two of us so it is ok with a 3rm flat ATM. Even I we are going to hv a kid, two bedroom should still be ok within a few yrs. we just want a home so that we can plan our next step. Really hv no patience to wait anymore.. Plus, it will be so much nearer to our work place from KW.. I can't imagine if we go to pungol or cck then how early we need to get up from bed to go work... Guess I'm just too lazy and alway hv prob waking up in the morning... So, hmmm... Ya, location is somehow v important to me too.... So, we chose KW even though we need to give up on the room size...

Well the good thing is you are not over stretching your finances now. And after 5 years, at which time its more or less time to find good schools for the child, you can move within 1 km of the school of your choice. And you have cash. You do not need to rely on the very fickle resale property market to finance your new home.

Will be better if your 3 room flat is in an area with no 3 room resale flat currently cos then in 5 years time you will be one of the first to put a 3 room resale on the market. The value will be better cos there are few competitors.

Demand for 3 room is strong. 2 major demand centers: young couples like yourself and the elderly who wants to downgrade.

Selling a Exec or 5 room to get 3 room can release a lot of cash.... Demand for 3 room will increase due to aging population. Not everyone will want to stay in studio flats.

 

[wwtan83]

How does hdb approve the loan? Based on monthly salary and age? eg if one is buying a $500k hdb, will hdb loan the full amount or only portion of it? Sorry for the noob qns.

Also I suppose for a $550k hdb, website has calculated monthly payment as abt 1.9k to 2k. Meaning these amount can be fully deducted from cpf ordinary account right? If monthly contribution is enough then we don't have to fork out cash? I mean is there a cap as to the amount u can use from your CPF ORD acct?

May I also ask when we will have to get the loan approved? Before selection of unit or before getting the keys? Taking into consideration it takes a few years to build, by then income may have increased as compared to during flat selection

HDB approve loan based on age and gross monthly income. Maximum loan tenure is 30 years or 65 years minus your current age whichever is lower.

Your monthly loan repayment is capped at 40% of your gross monthly income. Bonus are not taken into consideration. A factor is applied if you get allowances or are self employed or on comission. So best is fixed pay with monthly CPF contribution if not dont hope for a lot of support.

The above is guidelines only. HDB is an extremely conservative lender.

HDB will just state the amount they are willing to extend to you whether that is 90% of your purchase price or 40% of your purchase price will depend on how expensive your intended purchase is. E.g. if you intend to get a $500k HDB but they are willing to loan you up to $600k. Then its likely your loan is 90% of purchase price. But if they are only willing to loan you $200k, then its only going to be $200k - less than 50% of purchase price.

For monthly loan repayment there is no cap on the amount you can use from your CPF ordinary account. You can chose to use 100% of your monthly CPF contribution (ord a/c) or pay 100% cash or do something in between the 2 extremes.

You must get your loan approval before you place the booking. And there will be no reassessment of loan after you book your unit. At the point of booking, HDB will ask for a valid HLE, if you do not have one they will ask you to apply for one. It takes 2 weeks to apply.

HLE is valid for 3 months. And there is no application fee. The process is just quite troublesome.... esp if you are comission based or self employed.




The best time to apply for HLE is when both you and your spouse or fiance are gainfully employed. If both of you are on fixed salary without commission then 3 months employment history will suffice. But if one of you is self employed, on commission basis or get a lot of allowance then 12 months is needed for that person.
Once you get your HLE approved, one of you can quit your job if you chose to. HDB will not lower the loan amount they extend. Of cos make sure you can still afford the monthly loan repayments if you choose to do that.

 

[wilfred]

hi, i noticed some bto projects have plaza inside. what is this plaza?? is this row of shophouse or..??

Plaza is an open space which the floor have some finishes but usually not sheltered.





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[jimmy155white]

I think the AHG can be used to offset the 5% down-payment...try checking whether you qualify? If your income is more than $5000 (i.e. no AHG), then maybe try to start saving up from now? Or take a short-term loan from parents?

AHG can be used to offset the downpayment. Just to add on, when the BTO house is sold, the AHG money will go back to your CPF account.

My family qualified for it for our March 2010 BTO (we got only $5000 AHG in total). Not much but definitely helpful and better than nothing.

 

[wwtan83]

HDB and no bank is allowed to help you pay the 5% downpayment. Your only recourse is to borrow from your parents.

Don't try the loansharks pls.

If you really cant get the 5% just work and wait.... Save more spend less.

 

[Kaleen]

Many perceive HDB loan to be a safe haven because the rate is predictable, which means you can plan ahead and see whether you can afford to pay the mortgage every month. This can be contrasted with bank loans which are subject to fluctuations. Interest rates are kept low as of now but if liquidity really dries up, who knows if rates will increase above the HDB interest rate? It's simply a choice between a better rate (for now) or a greater amount of certainty and predictability.

True as above... One more thing to add is. If touch wood kana retrench at least hdb loan can hold for few months while bank will repossess or sue you... Like i said... Main objective is short loan..

 

[wilfred]

Hi. My gf currently overseas studying now, only be back next year jan. If i were to get a good que number for the MAY BTO, can i represent for for all the payments? Is she needed to be around for any signing of documents? FYI, i have her physical NRIC with me.

We have subsentential amount in our CPF already enough for the 5% downpayment.

Thanks !!

Get Power of Attoney done and you can do everything yourself without needing her to be in Singapore.



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[Larfing]

The hdb website shows McNair first timer rate is 0.6, does this mean for each flat we applied for, there are only 0.6 applicants?

 

[Hyruga]

The hdb website shows McNair first timer rate is 0.6, does this mean for each flat we applied for, there are only 0.6 applicants?

The hdb website shows McNair first timer rate is 0.6, does this mean for each flat we applied for, there are only 0.6 first timer applicants

 

[materialboi]

guys.. if the application rate for first timer is below 1.0, means as a first timer i will be succesful for the ballot?

 

[materialboi]

guys.. if the application rate for first timer is below 1.0, means as a first timer i will be succesful for the ballot?

any laojiao knows about this?

 

[UpperCut]

any laojiao knows about this?

Means whatever your queue no is (< total units available) you will definitely have a unit to choose

 

[UpperCut]

Looking at the application rate for KW where the 4 rm application rate for 1st timers is about 3 times that of 3 rm. And based on the units available (1:3), this effectively means for every 1 demand of 3-rm there are 9 demands for a 4-rm

If so, will this reflect the 4-rm flat commanding much higher resale value once 5yr MOP is over ?

 

[cuppers]

HDB approve loan based on age and gross monthly income. Maximum loan tenure is 30 years or 65 years minus your current age whichever is lower.

Your monthly loan repayment is capped at 40% of your gross monthly income. Bonus are not taken into consideration. A factor is applied if you get allowances or are self employed or on comission. So best is fixed pay with monthly CPF contribution if not dont hope for a lot of support.

The above is guidelines only. HDB is an extremely conservative lender.

HDB will just state the amount they are willing to extend to you whether that is 90% of your purchase price or 40% of your purchase price will depend on how expensive your intended purchase is. E.g. if you intend to get a $500k HDB but they are willing to loan you up to $600k. Then its likely your loan is 90% of purchase price. But if they are only willing to loan you $200k, then its only going to be $200k - less than 50% of purchase price.

For monthly loan repayment there is no cap on the amount you can use from your CPF ordinary account. You can chose to use 100% of your monthly CPF contribution (ord a/c) or pay 100% cash or do something in between the 2 extremes.

You must get your loan approval before you place the booking. And there will be no reassessment of loan after you book your unit. At the point of booking, HDB will ask for a valid HLE, if you do not have one they will ask you to apply for one. It takes 2 weeks to apply.

HLE is valid for 3 months. And there is no application fee. The process is just quite troublesome.... esp if you are comission based or self employed.




The best time to apply for HLE is when both you and your spouse or fiance are gainfully employed. If both of you are on fixed salary without commission then 3 months employment history will suffice. But if one of you is self employed, on commission basis or get a lot of allowance then 12 months is needed for that person.
Once you get your HLE approved, one of you can quit your job if you chose to. HDB will not lower the loan amount they extend. Of cos make sure you can still afford the monthly loan repayments if you choose to do that.

Appreciate your reply!

u say that the HLE will not be reassessed meaning that the loan approval will base on my current salary before signing the lease agreement while my flat will only be ready in 4 years time? When will the actual payment of the lease commence? Will there not be a reassessment if your income has rise significantly over the next few years? Ie u want a shorter loan period now and probably lesser loan? Is that possible?

Ok I am currently unemployed for 3 mths due to part time studies and will be getting a job soon. In this case I will have to get employed before applying for HLE..so as to secure a better loan amount yah?

I have ballot for the may Bto and flat selection will start in June. However I read from hdb that HLE need not be presented during flat selection however it is required 4 mths after flat selection when you are signing the lease agreement and paying the downpayment.

 

[logicet]

The HLE will be reassessed during collection of keys which is 3 to 4 years from now though. What I understand is that they will honor the HLE during your selection of the flat even if there are salary changes when you collecting your keys. The loan amount is likely to increase but not decrease.