wcp86 1 Report post Posted September 30, 2010 Need help from you guys.. here my story.. i am 1st time applying BTO and i have selected my flat and pay for the 2k deposit with my gf. Right now we have apply for HLE and the max loan they can loan up to us is 126,300 but our flat price is 250,000+. The flat will be ready in 2015. i am not very sure how come the amount hdb loan to us is so low. i am a self employed and drawing director fee monthly. my gf has a fix salary pay. Could we still apply for the flat even if the loan amount is not enuff for total flat price as the payment for the flat is in 5 year time? Or we have to apply for bank loan in order to sign the lease agreement? Could anyone please advise and help out. Thanks alot. Share this post Link to post Share on other sites
forgotten 1 Report post Posted September 30, 2010 (edited) HDB is always more generous than the bank, so I doubt bank will give you a bigger loan amount. However, no harm trying to ask one of the banks for a loan and see how much it will grant you. How much you and your gf are earning monthly, excluding your commission? HDB only looks at both your basic salaries, excluding commissions when assigning the loan amount. Do your GF and your CPF OA have enough to foot the 5% (if 1 of you < 30 years old)/ 10% (if both > 30 years old) downpayment at the signing of the lease appointment with HDB? Take note that BTO projects usually complete in 4 years time hor. On the day of getting your keys, HDB will expect your GF and your CPF OA + Loan are enough to foot for the remaining 90-95% of 250K. It's not possible to delay this, HDB is very black and white about this. Edited September 30, 2010 by forgotten Share this post Link to post Share on other sites
gimz63251073 0 Report post Posted September 30, 2010 If hdb only lends u 126k, u have to fork out the balance in CPF or in cash. Otherwise have to foreit 2k. chances are they did not consider ur director fee as income...shud try to check with HDB, see what they say on the low loan quantum. If u structure ur director fee as salary would better..? Share this post Link to post Share on other sites
manutd1972 1 Report post Posted September 30, 2010 u can try the banks and see if u can get a higher loan. but u cannot take a bank loan together wif HDB loan. the difference between the HDB loan amount and the price of the flat can be paid for using ur CPF funds. so u dun need to find a higher loan amount if u have enuf CPF. Share this post Link to post Share on other sites
wcp86 1 Report post Posted September 30, 2010 HDB is always more generous than the bank, so I doubt bank will give you a bigger loan amount. However, no harm trying to ask one of the banks for a loan and see how much it will grant you. How much you and your gf are earning monthly, excluding your commission? HDB only looks at both your basic salaries, excluding commissions when assigning the loan amount. Do your GF and your CPF OA have enough to foot the 5% (if 1 of you < 30 years old)/ 10% (if both > 30 years old) downpayment at the signing of the lease appointment with HDB? Take note that BTO projects usually complete in 4 years time hor. On the day of getting your keys, HDB will expect your GF and your CPF OA + Loan are enough to foot for the remaining 90-95% of 250K. It's not possible to delay this, HDB is very black and white about this. Really thanks for the reply. i am really new with such loan issue and some more i am self employed and make everything look very complicated. Currently my gf is earning ard 2.5k per month and i am drawing director fee of avg 1.2k per month as my company is a newly start up company. my gf and my cpf OA is enuff to foot the 5% as both of us is < 30. so meaning i can still can sign the lease appointment with the HDB? i am considering of changing my director fee to salary. but will the loan amount increase let say 4 year down the road, what i draw is salary pay instead of director fee? any idea? Share this post Link to post Share on other sites
wcp86 1 Report post Posted September 30, 2010 If hdb only lends u 126k, u have to fork out the balance in CPF or in cash. Otherwise have to foreit 2k. chances are they did not consider ur director fee as income...shud try to check with HDB, see what they say on the low loan quantum. If u structure ur director fee as salary would better..? when do i have the fork out the remaining? i have to fork them out b4 i sign my lease of agreement? or when i collect the key? i jus worry if they wan us to fork out the remaining 126k++, then we might not be able to do so already. i am considering to change my director fee to salary. but will they re assess my salary when i collect my key? or they will use what they have assessed now? Please advise if you have any idea about this. Thanks alot. =) Share this post Link to post Share on other sites
wcp86 1 Report post Posted September 30, 2010 u can try the banks and see if u can get a higher loan. but u cannot take a bank loan together wif HDB loan. the difference between the HDB loan amount and the price of the flat can be paid for using ur CPF funds. so u dun need to find a higher loan amount if u have enuf CPF. oh.. Any banks recommended that you tink will give higher loan?? Share this post Link to post Share on other sites
therat 18 Report post Posted September 30, 2010 Downpayment of purchase price http://www.hdb.gov.sg/fi10/fi10321p.nsf/w/...es?OpenDocument Enquiry on Maximum Loan To calculate the estimated maximum loan you may get https://services2.hdb.gov.sg/webapp/BP27Max...n/BP27PMax1.jsp The procedure to buy a flat from HDB. Apply for a Flat from HDB http://www.hdb.gov.sg/fi10/fi10321p.nsf/w/...DB?OpenDocument Read. Everything is in HDB Your is BTO. All the information can be find in HDB web. Share this post Link to post Share on other sites
wcp86 1 Report post Posted September 30, 2010 Downpayment of purchase price http://www.hdb.gov.sg/fi10/fi10321p.nsf/w/...es?OpenDocument Enquiry on Maximum Loan To calculate the estimated maximum loan you may get https://services2.hdb.gov.sg/webapp/BP27Max...n/BP27PMax1.jsp The procedure to buy a flat from HDB. Apply for a Flat from HDB http://www.hdb.gov.sg/fi10/fi10321p.nsf/w/...DB?OpenDocument Read. Everything is in HDB Your is BTO. All the information can be find in HDB web. Thanks for the link. i have read b4 those information b4 applying. i have try the maximum loan calculator. but the amount show and the amount the hdb send it over the mail is different. i try calculating with assuming 2.2k income for my gf and my income as 0 since hdb might not be considering my director fee as salary and the result i get is max loan is $219,800 but in the hdb letter they only state $126,300. so my qns is, let say 4 year down the road, i change my director fee to salary and my gf income remain the same, we will be able to get a higher loan? or will still be the 126,300 as they have calculated now? Share this post Link to post Share on other sites
therat 18 Report post Posted October 1, 2010 how about you check with HDB. How come there is a great different between the cal table and the actual loan? Share this post Link to post Share on other sites
gimz63251073 0 Report post Posted October 1, 2010 For me, my HLE was 80X my monthly income (based on CPF contribution). I have no other outstanding loans like car, study loan, etc. Wifey's income was declared as NIL since she work part time. 126k = Approx 50 times ur gf's annual gross salary. Kinda low. If it was 80X, it would have been 200k. Perhaps hdb granted a lower loan due to some existing liabilities that ur gf has...? Generally, lenders do not consider director fees as income. (based on my past experience in applying for credit card for my dad). Reclassifying it as salary would help. But even if you change immediately, have to wait a few months before resubmitting as HDB usually require a few months or regular contribution before considering the income. As pointed out by therat, best way is still to speak to HDB to find out reason for low loan amount... Share this post Link to post Share on other sites
wcp86 1 Report post Posted October 1, 2010 For me, my HLE was 80X my monthly income (based on CPF contribution). I have no other outstanding loans like car, study loan, etc. Wifey's income was declared as NIL since she work part time. 126k = Approx 50 times ur gf's annual gross salary. Kinda low. If it was 80X, it would have been 200k. Perhaps hdb granted a lower loan due to some existing liabilities that ur gf has...? Generally, lenders do not consider director fees as income. (based on my past experience in applying for credit card for my dad). Reclassifying it as salary would help. But even if you change immediately, have to wait a few months before resubmitting as HDB usually require a few months or regular contribution before considering the income. As pointed out by therat, best way is still to speak to HDB to find out reason for low loan amount... Yup.. will give hdb a call to check it out. thanks for the explanation. Share this post Link to post Share on other sites
