Questions regarding HDB loan. Pls advise :)

[justaguy77]

Hi everyone,

I'm new here and has some questions regarding HDB loan. Hope any bro or sis with similar situation as me can advise.

My girlfriend and I intends to buy flat from my dad. It is still under service, with loan from HDB. Owners' name is my dad and my brother. Reason why I want to buy is because my bro wants to buy a BTO flat and my dad wants some cash from the sale.

I don't think I can apply for the HDB the loan myself, as my current salary is under 2K. The flat is 4-ROOMED in a mature town, cost around 250 to 300K I suppose? I have CPF of about 150K that I can use, but even with that, I don't think my monthly contribution of 350 dollars is enough to service the rest of the loan for the next 30k years? Im 36 this years BTW.

My intention is to service the loan with my girlfriend but problem is she is a divorcee and had used up the 2 HDB loan privileges before. Of course currently she is staying with us and have no flat to her name.

So long story short, can we apply for loan together, but she had used up the HDB loan concession privileges.

Sorry for the long explaination, hope any bro/sis with similar situation can enlighten.

 

[vinz]

My girlfriend and I intends to buy flat from my dad. It is still under service, with loan from HDB. Owners' name is my dad and my brother. Reason why I want to buy is because my bro wants to buy a BTO flat and my dad wants some cash from the sale.

I don't think I can service the loan myself, as my current salary is under 2K. The flat is 4-ROOMED in a mature town, cost around 250 to 300K I suppose?

I think there are no longer cheap four room flat in MATURE TOWN.

Lowest price of 4room sold off lately:
Ang Mo Kio : $435k
Bedok : $399k
Bishan : $460k
Bt Merah : $428k
Jurong East : $425k
Queenstown : $515k
Toa Payoh : $396k

All prices are inclusive of COV (Cash over valuation), deduct the prices by ard 20-40k and you most likely get the estimated valuation.

Pls click to do a check : Resale Flat Prices

I have CPF of about 150K that I can use, but even with that, I don't think my monthly contribution of 350 dollars is enough to service the rest of the loan for the next 30k years? Im 36 this years BTW.

your loan amount will be valuation price + stamp fees - (cpf and grant)

if you buy over at 400k, stamp fees 6.6k, minus cpf of 150k, your loan will be $256.6k.

Assume a loan of 30ys for 256.6k, monthly installment will be around $1026.
Monthly installment got to top up with cash, but the main thing is, based on income of 2k, HDB will most likely not loan you 256.6k.

My intention is to service the loan with my girlfriend but problem is she is a divorcee and had used up the 2 HDB loan privileges before. Of course currently she is staying with us and have no flat to her name.

So long story short, can we apply for loan together, but she had used up the HDB loan concession privileges.

No.

But you can write it to appeal. Give a good reason and maybe they will consider. And of course both of you must get married (assuming she is below 35yrs old).

Maybe you should save up cash and get a 3room resale in a non mature estate. Your brother can proceed to apply the BTO, but when nearing key collection then would he need to sell the flat. It should at least be 3-5yrs down the road seeing the waiting time for BTO to complete.

vinz

 

[henrylbh]

First you need to determine whether your dad and brother willing to sell you the flat at below valuation amount.

If they want valuation plus cov, you can forget about buying over because valuation amount is way above 250 to 300k that you have in mind for a 4rm flat in a matured estate.

 

[therat]

My neighbor sold his 4rm @ Bedok $508K

$399k is @ Bedok Reservoir Rd

 

[justaguy77]

Hi vinz and henry,

thanks for the prompt reply. My dad will be selling to me at HDB valuation price. He wont be charging me extra cash. So i guess even so, its still out of my reach.

What do you mean by below valuation price? They can sell to us below the value quote by HDB???

I guess I will have to try for the new BTO 2-room flat when they release. Its not a bit issue since we have no intention of having children but I thought it be nice to have a least 3 room BTO available for us.

HDB do have some stupid rule. I can apply for BTO 2-room as a single but because my gf has used up the HDB privileges, we cant apply together as a couple.

So my brother still can apply for BTO right? Even though he is the owner of the current flat and servicing the loan.

 

[henrylbh]

My neighbor sold his 4rm @ Bedok $508K

$399k is @ Bedok Reservoir Rd

I bot 3rm flat at bedok reservoir in mid 2011 at 350k. I think valuation was 320k for a 82sm flat.

 

[vinz]

What do you mean by below valuation price? They can sell to us below the value quote by HDB???

yes u can,but not by way too much.
maybe 10-20k below valuation.

HDB do have some stupid rule. I can apply for BTO 2-room as a single but because my gf has used up the HDB privileges, we cant apply together as a couple.

Not stupid, if not everyone will be able to apply endless amount of BTO just by re-marrying someone who had never done so? The rule is there for a reason.

So my brother still can apply for BTO right? Even though he is the owner of the current flat and servicing the loan.

Ask him call hdb during office hours to check 1800-8663066.
We do not know whether existing flat is BTO, bought with grant or not, and whether all other criteria for BTO he is able to satisfy or not especially on the income part.

 

[henrylbh]

I believe he can buy way below valuation if both parties agreeable. However, stamp fee must be paid based on valuation amount and sale proceed must be able to make good the seller's cpf plus accrued interest.

Financer will only loan based on purchase price or valuation amount whichever is lower.

 

[justaguy77]

Thanks for the reply, henry and vinz,

at least now I have some knowledge of my situation and I can plan from there.

Appreciate ur help and time. Cheers.

 

[vinz]

I believe he can buy way below valuation if both parties agreeable. However, stamp fee must be paid based on valuation amount and financer will only loan based on purchase price or valuation amount whichever is lower.

This is not pte property.

HDB "may" reject the sale if the price is way lower than valuation, and much lower than the market price around the block.

There are of course certain reasons for this which those who want to know can just write in to ask HDB.

My guess is that it will de-flat the real market price of HDB flat if flat sold to direct relative are always way below the valuation.

vinz

 

[henrylbh]

Whether private or hdb flat, owner can give away free to eligible person provided stamp fee is paid based on valuation and the giver must get back his cpf used plus accrued interest.

I am giving/selling my flat bought with cash FOC to father as a single, but we must pay stamp fee based on valuation and my father must give up his joint-ownership of a flat with my sis and here again we must pay stamp fee for removing his joint-ownership . Surprisingly the office at the branch assure me that my father as single can buy an E flat though it is not allowed according to the website!!! Now I am trying to find out whether I need to pay stamp fee if I inherit the flat from my father when he is gone, if I am eligible at that time.