Hi all, I am new to loans and I have quite many doubts on HDB loans. Please advise on whether my following understandings are correct or not. Thanks in advance. I need to ask these questions because we are planning to have 5 rooms BTO and it's expensive, and we've tried to apply for BTOs for a year already and no luck so far. We will consider DBSS too, and DBSS is even more expensive. I doubt that we will have to apply for a very large amount of loan. My wife is having a baby and she's not working so I have to probably apply for loans on my own behalf. My current salary alone may not support such high amount of loans but I believe that the loan will be within our financial capability (my wife is Ph.D. graduated and she can earn even more than me). 1) For BTO, during selection date, I have to pay for 5%/10%/20% down-payment by CPF or Cash, and I have to pay another 95%/90%/80% after several years (during key collection process). Does it mean that I only need to apply for HDB loan after I collect my key? And does it mean that I only need to start paying the monthly installment after I collect my key? 2) It's said that I have to apply for an HLE letter during BTO selection process, what's the use of this letter if I need to apply for HDB loan after several years? Can I still successfully sign the agreement even if currently the HLE letter can't grant me the loan I wants? What will happen if say I need S$400,000, but HDB only grants me S$300,000 in the HLE letter during BTO selection process? Will HDB grant me more during key collection? Or I have to pay another S$100,000 in CPF or cash during key collection (or during BTO selection?) 3) What will happen if say I need S$400,000, but HDB grants me S$300,000. And after several years when I collect my key, my income is reduced. Will HDB reduce my loan amount during that time? 4) If I will take loan from bank other than HDB, what will happen if the granted loan is not enough currently but are enough after several years? Thanks again. Vincent H.
