Headache With Housing Loan

[coldshot 0]

Hi Guys

I'm will be going house hunting once i turn 35 in May under the singles scheme

I understand that in order to qualify for a HDB loan, my income cant exceed $3k.

At the moment, my base without my comm is a flat $3k.

The thing is my boss is putting me up for a promo and pay raise which means i wont be eligible for HDB loan anymore.

Really at a crossroads here cos i wanna start planning my sums soon.

A bank loan means at least 20% down as opposed to 10% for HDB loan.

That additional 10% could be used for my reno.

Next best alternative is to ask my boss to KIV my promo until i get my HDB loan. Tough call as well

Argh...

Would really appreciate some input here.

[edenstrauss 3]

Please check with HDB on their current policy.

They are the best candidates to address your situation since they are the law makers.

[neubie 2]

Hi Guys

I'm will be going house hunting once i turn 35 in May under the singles scheme

I understand that in order to qualify for a HDB loan, my income cant exceed $3k.

At the moment, my base without my comm is a flat $3k.

The thing is my boss is putting me up for a promo and pay raise which means i wont be eligible for HDB loan anymore.

Really at a crossroads here cos i wanna start planning my sums soon.

A bank loan means at least 20% down as opposed to 10% for HDB loan.

That additional 10% could be used for my reno.

Next best alternative is to ask my boss to KIV my promo until i get my HDB loan. Tough call as well

Argh...

Would really appreciate some input here.

Not true a bank loan requires 20% downpayment in cash. For bank loan, the first 5% downpayment of the valuation price (not inclusive of cov) is in cash. The next 15% can be either in cash or cpf, also the next remaining 80% can also be in cash or cpf.

Hdb ruling is once the single applicant salary exceed 3k, cannot take Hdb loan nor entitled to the 11k cpf grant (grant for staying near with parents). Dunno what kind of f**k policy is this anyway.

So for ur case when buying resale under sg single citizen scheme, the minimum cash component u fork out is 5% of val price + cov + reno costs. Associated costs like stamp/legal fees may be subsidised by the bank and payable by cpf. Valuation report $180 is paid in cash also. Same goes for agent commissions.

So assuming a resale flat with val 380k n 20k cov, u need to pay the following in cash when taking bank loan:

5% of d/p = 19k

Cov = 20k

1% commission = 4k (4.28k with gst)

Adding misc fees shd be about 45k. This amt is about there. Reno excluded of cos. As a guide, u would at least need about $50k to tide u thru when buying resale.

Hope that helps.

Edited January 18, 2011 by neubie

[marshmallow 0]

Hi Guys

I'm will be going house hunting once i turn 35 in May under the singles scheme

I understand that in order to qualify for a HDB loan, my income cant exceed $3k.

At the moment, my base without my comm is a flat $3k.

The thing is my boss is putting me up for a promo and pay raise which means i wont be eligible for HDB loan anymore.

Really at a crossroads here cos i wanna start planning my sums soon.

A bank loan means at least 20% down as opposed to 10% for HDB loan.

That additional 10% could be used for my reno.

Next best alternative is to ask my boss to KIV my promo until i get my HDB loan. Tough call as well

Argh...

Would really appreciate some input here.

if you die die wants the HDB loan, the easiest and the most fuss-free way is to ask your boss to delay your promotion until you get your HLE... if you want the 11k grant as well, then the promotion needs to be delayed until after 2nd appointment~

but if the pay rise after promotion is A LOT, then you gotta think about whether is it worth it.

[neubie 2]

Hdb loan got good and bad. First bad point I can think of is the higher but flat interest rate u have to pay when servicing monthly loans. Compared to bank loans their rates are much lower, so one pays less for the interests accrued.

[coldshot 0]

Not true a bank loan requires 20% downpayment in cash. For bank loan, the first 5% downpayment of the valuation price (not inclusive of cov) is in cash. The next 15% can be either in cash or cpf, also the next remaining 80% can also be in cash or cpf.

Hdb ruling is once the single applicant salary exceed 3k, cannot take Hdb loan nor entitled to the 11k cpf grant (grant for staying near with parents). Dunno what kind of f**k policy is this anyway.

So for ur case when buying resale under sg single citizen scheme, the minimum cash component u fork out is 5% of val price + cov + reno costs. Associated costs like stamp/legal fees may be subsidised by the bank and payable by cpf. Valuation report $180 is paid in cash also. Same goes for agent commissions.

So assuming a resale flat with val 380k n 20k cov, u need to pay the following in cash when taking bank loan:

5% of d/p = 19k

Cov = 20k

1% commission = 4k (4.28k with gst)

Adding misc fees shd be about 45k. This amt is about there. Reno excluded of cos. As a guide, u would at least need about $50k to tide u thru when buying resale.

Hope that helps.

Thanks Neubie.

Your post has been very helpful.

It is comforting to know that the additional 15% can be covered by CPF.

And i do strongly agree that this **** $3k income cap is lame. Majority of singaporeans who have been working for a number of years would have exceeded this bracket.

The general consensus i'm hearing fro my friends is HDB loan is still better as bank rates tend to raise quickly over the years.

I don't think the payraise is gona be really huge. Max 10% of my pay.

If i have to take a bank loan then my budget for my flat has to come down.

[therat 18]

that 8K limit even more lame.

$700k HDB unit and household income cap at $8k

And still have ppl buy

[bepgof 20]

Please check with HDB on their current policy.

They are the best candidates to address your situation since they are the law makers.

"Good" advise le, TS also knows lah.

Edited January 18, 2011 by bepgof

[bepgof 20]

So for ur case when buying resale under sg single citizen scheme, the minimum cash component u fork out is 5% of val price + cov + reno costs. Associated costs like stamp/legal fees may be subsidised by the bank and payable by cpf. Valuation report $180 is paid in cash also. Same goes for agent commissions.

Stamp fee is calculated at such: (buying price x 3%-$5,400), bank will not "subsidy" this amount! A $300k flat need $3,600 cash or cpf. Agent's comm need cash! too

Edited January 18, 2011 by bepgof

[neubie 2]

Stamp fee is calculated at such: (buying price x 3%-$5,400), bank will not "subsidy" this amount! A $300k flat need $3,600 cash or cpf. Agent's comm need cash! too

i got mine stamp fee subsidized by bank wor....

[therat 18]

i got mine stamp fee subsidized by bank wor....

ur bank love u lot lot lor

[bepgof 20]

i got mine stamp fee subsidized by bank wor....

Stamp duty fee is the $ paid to IRAS to get doc registered & "recognised" by singapore law. Can tell which bank & amount?? Legal fee also absorbed by bank??? Lock in 5 year with fixed interest rate, you choose???

"Sweeteners" are not always good.

Edited January 18, 2011 by bepgof

[May_dream1 14]

i got mine stamp fee subsidized by bank wor....

I only know bank subsidize legal fees. Don't know they do that for stamp duty too.

[neubie 2]

hmmm, need go check.... tink is legal fees which my bank subsidize....may be i rem salah liao....

Edited January 18, 2011 by neubie

[therat 18]

hmmm, need go check.... tink is legal fees which my bank subsidize....may be i rem salah liao....

legal and stamp fee subsidize alot of different lay

legal only 3k est

stamp fee smelly smelly 5 digit

may be the developer pay the stamp fee for you as a goody?